Inglorious uncertainty: 

Inglorious uncertainty:

Context:

India has experienced an economic slowdown to 5.7%

What is the issue?

• India needs to grow at least 7 to 8 per cent a year. However, for the last 6years it has not crossed that average.
• Several indices like private investment, index of industrial production are also disappointing.
• However, the present government cite “ technical issues” as the reason for economic slowdown

What are the major issues with present government policies?

• Inefficient addressing to the problem around the relationship between big capitals and the banking system
• Though inflation has been managed well, unemployment remains a big problem
• There is diminishing faith in the private sector. Indian capital is facing a deep crisis of credibility.
• There is a lack of economic diagnosis. Myopic view of the government while implementing major structural reforms is a major issue.
• Improper implementation of reforms like demonetization. What it might manage to achieve in the future, could have been achieved by other means and at far less cost to the poor.
• Economic pessimism is evident from the political support for demonetization. The confidence in government was a consequence of the rock-water bottom to which the economy has reached.