Keeping the economy humming

Keeping the economy humming

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