03 SEP,2019 | MEDC
With the government announcing a slew of measures aimed at accelerating growth, there should be an improvement in mood amongst various players. The measures are spread across many sectors, which shows an attempt to address a wide range of issues. Amongst other measures, the government plans to arrest the slowdown by immediately infusing Rs. 70,000 crore as capital in state-run banks to ease capital flows, and ensure that housing finance companies are not short of money. The automobile sector, which is the backbone of India’s manufacturing sector, and has seen huge job losses lately, has also been paid considerable attention. This booster shot for the economy is likely to improve sentiment and impact key variables powering economic growth. The government needs to make market and democratic forces work in tandem, as it sets about creating conditions that would spur efficiency.
*Photo Credit: Google