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04 NOV,2019 | MEDC
The core sector data for September shows output down by 5.2% over the comparable period last year. It points to a declining demand in the backdrop of weakening growth. This unfortunate situation needs to be tackled at both the micro and the macro levels. Uncertainty about access to markets and inputs is causing businesses to postpone investments. Rising trade protection also means that capital and labour get deployed less effectively. There is certainly a case for sector-specific troubleshooting, but a macro-level demand boost funded by the exchequer is now becoming necessary. To this end, various mega infrastructure projects all over the country, which have been dragging their feet, need to be expedited, as they provide huge ancillary benefits to the economy.
*Photo Credit: Google
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