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10 JAN,2021 | MEDC
Most economic indicators seem to suggest that a recovery is underway, although whether it is sustainablecontinues to remain questionable. The Covid-induced lockdowns are gradually being relaxed, and consumer spending is slowly rising. India’s largest auto producer Maruti Suzuki is anticipating a V-shaped recovery in industry volumes in the second half of the fiscal year, as pent-up demand begins to express itself. Data shows that the crucial MSME sector has accessed credit to the tune of over Rs. 50,000 crore (at favourable terms) over the past few months. Policymakers now need to proactively leverage the anticipated rise in demand to spur investment and ease supply bottlenecks. There is also a need to fast-forward financial sector reforms to boostinflows, and generate a steady stream of funding for infrastructure development projects. Infrastructure is one of the last remaining local industries where easy gains are still obtainable simply by emulatingglobal best practices. We should not miss this opportunity.
*Photo Credit: Google
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