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19 AUG,2019 | MEDC
India’s growth slowed to 5.8% in the January-March quarter, along with global growth which has also declined in the wake of the ongoing global trade war between the US and China. Thus, export-led growth will now have its limits. The focus has to be on enhancing the efficacy of the domestic financial plumbing to allow monetary policy to transmit more fully, improve the competitiveness of our exchange rate, privatize judiciously, and maintain fiscal restraint which is key to controlling inflation. There is no need to be pessimistic as many important reforms are already in place, including the Bankruptcy Code and the GST, which are a good start. However, reforms pertaining to land, labour, and green growth, need to be pursued more aggressively.
*Photo Credit: Google
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