SMEs hold key to revive investments

SMEs hold key to revive investments

Context

The current episode of investment slowdown is ongoing, and one that is impacting growth, and therefore investment revival needs to be prioritised urgently to arrest more lasting impact on growth

Measures to regain growth

To help India regain growth, the Survey suggested that the measures, that need to be taken soon,

• Should include easing further the cost of doing business and creating a clear and stable tax and regulatory environment.
• The government must create a conducive environment for small and medium industries to prosper and invest to help revive private investment

Savings slowdown

The Survey raised concerns over slowdown in savings saying that too was ongoing.

Question asked

Referring to the simultaneous slump in savings and investment, the Survey asked, “Should policies that boost investment (substantial infrastructure push, reforms to facilitate the ease of doing business or the ‘Make in India’ programme) be given greater priority over those that boost saving?”