23 MAR,2020 | MEDC
The ancient Chinese curse May you live in interesting times is now upon us. All over the world, policymakers are facing an unprecedented stress test and they will be judged by their ability to deal with it. In India, inflation is declining and it is likely to fall further. Under the circumstances, a rate cut by the RBI is probably warranted. The falling fuel and gas prices should induce India to build strategic oil reserves, which can be tapped into whenever required. We need to identify major economic sectors affected by links to global supply chains and see how they could be supported. This could also be used as an opportunity for further tax simplification, especially that of GST for the MSME sector. Ultimately, the sequencing and coordination of various polices needs to be better managed. That will go a long way in reviving our economy, even if Covid-19 does not really impact us.
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