{"id":74965,"date":"2020-12-31T18:17:05","date_gmt":"2020-12-31T12:47:05","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=74965"},"modified":"2021-01-02T14:19:40","modified_gmt":"2021-01-02T08:49:40","slug":"path-to-economic-recovery-of-india","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/path-to-economic-recovery-of-india\/","title":{"rendered":"Importance path How to increase economic recovery of India"},"content":{"rendered":"<p><span data-contrast=\"none\"><strong>Synopsis:\u00a0<\/strong><\/span><span data-contrast=\"none\">Government should adopt a fiscal stimulus Path\u00a0for\u00a0the economic recovery of India,\u00a0to make our economy grow at 9% GDP in the coming years.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\"><strong>Background<\/strong><\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<ul>\n<li><span data-contrast=\"none\">The impact of the pandemic has\u00a0pushed India to impose stringent lockdown measures to save millions of lives of Indian citizens but it\u2019s after effect has caused massive\u00a0economic disruption.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">This has resulted in fall of GDP by around 7.5 percent for this full year which has dented our aspiration to become a$5 trillion economy by 2024.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Though nothing much can be done for what has happened, in the coming years India needs to get back to the trend line of growth (pre-COVID years) to sustain the aspiration of our young population.<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\"><strong>How different sectors are performing currently?<\/strong><\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<ul>\n<li><span data-contrast=\"none\">The sectors which have shown a positive sign of recovery are<\/span>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span data-contrast=\"none\">Pharmaceuticals and chemicals, the FMCG sector, the two-wheeler sector, Construction equipment\u2019s driven by rural demand from sales to individuals, Capital goods.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><span data-contrast=\"none\">In contrast, Sectors that are still struggling for a full recovery are<\/span>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span data-contrast=\"none\">Mainly, the travel and tourism sector, real estate and construction sector, and retail which are significantly high employment sectors.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span data-contrast=\"none\"><strong>So, what steps must the government take?\u00a0<\/strong><\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Though the recovery underway is solid, but we need measures to sustain and deepen it. The government can do three things.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<ul>\n<li><span data-contrast=\"none\"><strong>First, the government should resort to fiscal stimulus by<\/strong><\/span><span data-contrast=\"none\">\u00a0paying long-overdue government bills. Few examples are,<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span data-contrast=\"none\">Distribute the\u00a0pending tax refunds, pay the bills of all companies (large and small), pay off the many\u00a0arbitration award spending\u00a0where the government has lost cases, and pay state governments their\u00a0pending GST dues.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><span data-contrast=\"none\"><strong>Second, invest in public health infrastructure and<\/strong><\/span><span data-contrast=\"none\">\u00a0centre should finance state government efforts to build an extensive public health network.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span data-contrast=\"none\">While this will equip as to handle a possible second wave of the virus, on the other, it will spread confidence.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Also, it is essential for the government to work in partnership with private sector hospitals.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><span data-contrast=\"none\"><strong>Third, invest massively in infrastructures such as roads, ports, logistics<\/strong><\/span><span data-contrast=\"none\">. Areas, where investment can be channelised, are,<\/span>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span data-contrast=\"none\">By Providing decent, accessible housing to improve the living conditions in slums across our cities by providing right\u00a0public-private program.<\/span><\/li>\n<li><span data-contrast=\"none\">By providing cheap connectivity into our cities.<\/span><\/li>\n<li><span data-contrast=\"none\">Even, the\u00a020 trillion infrastructure pipeline project\u00a0that requires massive funding can be considered.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span data-contrast=\"none\"><strong>How the funds for the above will be sourced?\u00a0<\/strong><\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<ul>\n<li><span data-contrast=\"none\"><strong>To mobilize its resources\u00a0<\/strong><\/span><span data-contrast=\"none\">that are needed to finance the above measures, the government can opt for a huge privatization programme (Disinvestment)<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span data-contrast=\"none\">Under this program, the government should intend to reduce its share-holding to 26 percent across public-sector banks, steel companies, oil companies, and every manufacturing company and hotel it currently owns.\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">This announcement might\u00a0trigger a big rally in the stock prices of PSUs, increasing return.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><span data-contrast=\"none\"><strong>To stem the protests due to big reforms,<\/strong><\/span><span data-contrast=\"none\">we are witnessing currently, the government should\u00a0choose democratic methods for implementing\u00a0them such as use of\u00a0discussion papers for public comment, the debate in Parliament.\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\">We need to act swiftly to regain from stunted recovery. We must use our\u00a0economic crisis as an opportunity\u00a0to set some bigger things right that we have ignored for too long.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Synopsis:\u00a0Government should adopt a fiscal stimulus Path\u00a0for\u00a0the economic recovery of India,\u00a0to make our economy grow at 9% GDP in the coming years.\u00a0 Background\u00a0 The impact of the pandemic has\u00a0pushed India to impose stringent lockdown measures to save millions of lives of Indian citizens but it\u2019s after effect has caused massive\u00a0economic disruption.\u00a0 This has resulted in&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/path-to-economic-recovery-of-india\/\">Continue reading <span class=\"screen-reader-text\">Importance path How to increase economic recovery of India<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":74967,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,1351,1310,9],"tags":[1308,1284],"class_list":["post-74965","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-9-pm-daily-articles","category-daily-news","category-daily-news-updates","category-public","tag-eco_0","tag-eco_2","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/12\/Path-to-economic-recovery-of-India.jpg?fit=1280%2C720&ssl=1","views":{"total":0,"cached_at":1700785598,"cached_date":1704934479},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/74965","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\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=74965"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/74965\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/74967"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=74965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=74965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=74965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}