There are no magic bullets to revive the economy as this time situation is quite different. The macro indicators are fine but overall economy is not doing good. Last quarter growth was pegged at 4.5%, IIP was in negative territory, Exports are not growing, Private investment is low, Twin balance sheet problem, IL&F crisis etc. All these shows all is not good economy. Hence there needs to be some comprehensive strategy to deal with the economic slow -down.
Possible solutions to the problem of Economic slowdown are as follows:
- Revival of auto sector: Give auto sector incentives to invest and shift to electric vehicles. Incentives to auto sector employees to upskill on electric vehicles.
- Changes in GST: collection to quarterly for companies below Rs 1 crore,Reduce the GST slab rates
- Improve the credit flow for all the stakeholders of the economy. There has to be work towards the achievement of monetary policy transmission.
- Reduction of real interest rate so that cost of capital gets down.
- Government expenditure shall be on investment and infrastructure creation, upskilling of displaced employee. Further consumption driven growth is not going to be sustainable.
- Emphasis on rural economy so that demand can be further created. The stagnancy in agriculture has to be addressed