09 SEP,2019 | MEDC
It is obvious by now that the Indian economy is in the throes of a protracted sluggishness. Theorists may argue over whether its causes are cyclical or structural, but the fact is that something needs to be done urgently. Just before the Q1 GDP numbers for 2019-20 were officially released, it was announced that ten state run banks would be merged into four. Our financial sector is today not too healthy, and the merger of relatively weak banks with their more robust counterparts is unlikely to solve the underlying issues. The economy is still paying the price for some human errors, but the silver lining is that the government is looking into complaints. We can’t afford a piecemeal response, lacking a strategic vision, a grand plan, or a large-scale mobilization of public funds. Ultimately, it calls for a change in attitudes, as there is no alternative to following rules and working together with discipline for the common national interest. The political leadership has obtained a strong mandate, and it should be used wisely to deal with this precarious situation.
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