Three key changes: To counteract global slowdown GoI should privatise, reform agri market & reduce customs duties

Source: The post is based on an article “Three key changes: To counteract global slowdown GoI should privatise, reform agri market & reduce customs duties” published in The Times of India on 2^nd September 2022.

Syllabus: GS 3

News: This article discusses about the steps that India should take to tackle global economic slowdown.

April-June quarter’s GDP data shows recovery in the Indian Economy. However, global economy has slowed down.

Also, RBI’s monetary tightening to contain inflation will hinder economic progress.

All these issues can be tackled if the state and central govt. can resume the shelved reforms.

What steps can be taken by government of India to counter global economic slowdown?

Privatization

GoI needs to overcome bureaucratic hurdles to privatization.

The government announced strategic disinvestment of 35 PSUs in 2016. Out of which 24 are still in the process of sale.

There is slow progress in the proposed privatization of two public sector banks of the 12 functioning ones.

These transactions will provide capital for GoI and boost its infrastructure development plans.

Agriculture

The potential of the common platform for a national agricultural market (e-NAM) hasn’t been fully tapped.

It has a great potential but there is a need to work on logistics and dispute settlement.

Trade

The protectionist approach needs to be discarded to get the most out of the PLI scheme.

FTAs, rather than bilateral trade deals, should be prioritized.