{"id":255961,"date":"2023-08-12T20:55:07","date_gmt":"2023-08-12T15:25:07","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=255961"},"modified":"2023-08-29T13:43:10","modified_gmt":"2023-08-29T08:13:10","slug":"india-needs-a-new-economic-policy","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/india-needs-a-new-economic-policy\/","title":{"rendered":"India needs a new economic policy"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201c<\/strong>India needs a new economic policy<\/strong>\u201d published in The Hindu <\/strong>on\u00a012th<\/sup> August 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS 3 \u2013 Indian Economy \u2013 Growth & Development<\/strong><\/p>\n

Relevance: <\/strong>measures needed to boost GDP growth rate<\/strong><\/p>\n

News:<\/strong> The National Statistical Office (NSO) has released the fourth-quarter GDP growth rate figures for 2022-23.\u00a0The current NSO data, when compared to the previous year, present a more pessimistic outlook.<\/p>\n

Further, analyzing NSO data since 2014-2015 yields three important conclusions.<\/p>\n

What conclusions can be made after analyzing NSO data since 2014-2015?<\/strong><\/h2>\n

First, <\/strong>the GDP growth rate has been decreasing each year since 2015-16, and it has now dropped in the fourth quarter to a level of 3.5%.<\/strong><\/p>\n

Second,<\/strong> this growth is similar to the Hindu Rate of Growth<\/strong><\/a> observed during the 1950-77 socialism era.<\/p>\n

Third,<\/strong> the economic reforms taken under the leadership of P.V. Narasimha Rao and Manmohan Singh <\/strong>led to increase in GDP growth to 6% to 8% annually, from 1991 to 1996 and 2004 to 2014.<\/p>\n

However, recent years have seen a worrying and ongoing drop-in GDP growth rates since 2016.<\/p>\n

What measures can be taken to boost the growth rate of GDP?<\/strong><\/h2>\n

First,<\/strong> abolishing personal income tax and eliminating the Goods and Services Tax (GST) are crucial steps to encourage investors and earners.<\/p>\n

Second,<\/strong> the government should raise funds through indirect taxes and by printing currency notes,<\/strong> which can be circulated by paying wages to the employment generated in extensive public works.<\/p>\n

Third,<\/strong> the government should set fixed-term savings interest at around 9% to boost middle-class purchasing power, and limit loan interest rates for small and medium industries to 6%<\/strong> to increase production and employment.<\/p>\n

Fourth,<\/strong> India also requires a comprehensive new economic policy<\/strong> with clear objectives, priorities, a strategic approach to achieving goals, and a transparent resource mobilization plan.<\/p>\n

Fifth,<\/strong> in India, the market system operates under rules and isn’t entirely free. However, market capitalism thrives on incentives and capital<\/strong>, driving innovation, factory productivity, and GDP growth. China also embraced this free market approach<\/strong>, despite being a totalitarian.<\/p>\n

However, it doesn’t imply full deregulation. Government intervention is needed for<\/strong> safety nets, affirmative action, addressing market failure, and ensuring a level-playing field.<\/p>\n

Must Read: <\/strong>India\u2019s GDP Growth for FY2021-22 – Explained<\/strong><\/a><\/p>\n

What can be the way ahead?<\/strong><\/h2>\n

Balancing public sector and deregulation, along with selling unprofitable units, boosting employment through affirmative action, and ensuring access to social security will help the poor in India.<\/p>\n

This will also foster fairness in competition, ensures transparency, accountability, philanthropy, and corporate governance, legitimizing profitable operations that drive the market system.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cIndia needs a new economic policy\u201d published in The Hindu on\u00a012th August 2023. Syllabus: GS 3 \u2013 Indian Economy \u2013 Growth & Development Relevance: measures needed to boost GDP growth rate News: The National Statistical Office (NSO) has released the fourth-quarter GDP growth rate figures for 2022-23.\u00a0The current… Continue reading India needs a new economic policy<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,8184],"class_list":["post-255961","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/255961","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=255961"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/255961\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=255961"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=255961"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=255961"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}