Why the pace of economic recovery will remain uncertain

30 SEP,2019 | MEDC


 

The cut in the corporate tax rate is expected to enhance domestic corporate savings and lead to higher investment in the economy. However, any increase in investment will occur only in the long run, as private consumption is faltering, and so Indian companies are unlikely to boost investment immediately. Besides, the concomitant increase in the fiscal deficit will limit the potential for future rate cuts by the RBI. The need of the hour is the efficient transmission of policy rates, which will work to the economy’s advantage. The government has set the ball rolling along the right path, and the long term effect of the measures announced will likely benefit the economy. However, in the short run (i.e. for a year or two more), corporate investment will probably continue to remain muted.

*Photo Credit: Google

Comments


Featured Posts

Recent Posts

EMERGING ISSUES IN AEROSPACE INDUSTRY: AN INDIAN PERSPECTIVE


Tourism and its contribution to the Economy


Interactive Meeting with Mr. Jaykumar Rawal Hon'ble Minister for Tourism & Employment Guarantee Scheme Govt. of Maharashtra


De-coding skills-based pro-bono


FOOD PRICE VOLATILITY


Food Inflation in India: An Assessment



Archive

© Copyright 2019 MEDC, All rights reserved
Website Design and Develop By: SCI Knowledge Interlinks