The new BJP led NDA Government under Narendra Modi, as expected , has now to address certain important economic issues after it registered a land slide victory in the recently concluded elections. It is not that the Government , NITI Ayog, the Reserve Bank of India and the economic policies planners are any ignorant about the priority to be accorded to address these issues but some Economists, both within and outside the country have identified certain problems like the inertia of slowdown in the economy, jobs creation, private investment, agrarian distress, and the mounting NPAs of the Banks. The world’s sixth largest economy could succeed in progressively in bringing down the rate of inflation from a two digit figure to a paltry 2 percent due to austere policies pursued by it which in no means is an ordinary achievement. Through massive Government spending on building infrastructure and other developmental projects, cumulative demand and supply were going to get boost as avenues of more money incomes followed by more spending get created.
The success of monetary and fiscal measures coupled with some critical imports kept the inflation rate under check which speaks for price rise being no issue raised in the recently concluded elections. The fight against rising inflation had a vast direct bearing on the living of the general masses in the country. The fact that mounting NPAs had to be further tackled to bring Banks back to their satisfactory financial health as also tackling job creation problems could not be disputed and must surely attract preferred attention of the new Government. The fluctuating trend in the GDP growth though having touched as high as to 8.2 percent in 2015-16 as compared to 6.4 percent in 2013-14 has slipped to a low of 6.6 percent in Oct-Dec 2018 due to host of reasons , has to be attended to in order to be around 7.5 percent during the current fiscal about which the World Bank has expressed positive hopes.
Follow our WhatsApp channel