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Context:
There is a need to improve the private investment cycle and the banking system needs to be fixed
Concerns Highlighted by Former RBI Governors and former Deputy Chairman of the Planning Commission:
- The economy is performing below potential.
- The private investment rate has fallen from 33-34% of the GDP to about 27%.
- Excessive focus on monetary policy to drive growth.
- Banks are crippled with problems like NPA
Suggestions Put Forward:
- Improvement in Private Investment Cycle
- Consultation with the industry to see how the investments could be brought in
- More focussed attention to individual sectors of the industry
- There should be high priority in resolving the banking mess
- Growth should be consistent with some level of stability to make the growth sustainable
