Former Prime Minister and Economics master’s degree holder Manmohan Singh has hit the headlines earlier with the statements that the Indian economy is slowed down and now he came to limelight once again with the agenda of assisting the current government with his tips to tackle the current economic crisis. In an interview, the former PM suggested five corrective steps in which the major issue is due to the demonetization of higher value currency notes and implementation hiccups with Goods and services tax. Following are the Manmohan Singh Five Remedies to check Economic Slowdown.
- First, GST should be made “logical” even though this would mean a revenue loss for a brief time.
- Second, devise new ways to both, revive the agriculture and boost rural consumption. “The Congress manifesto mentions ‘concrete alternatives’, wherein money could reach in the hands of people by freeing agricultural markets,” he said.
- Thirdly, there is a need to infuse liquidity in the system for capital formation.
- The fourth measure is to revitalize key labor-intensive sectors such as textile, automobile, electronics, and affordable housing. For that easy loans would be required, especially for micro, small and medium enterprises (MSMEs), he said.
- Manmohan Singh’s fifth measure pertains to harness emerging export opportunities because of the ongoing tariff war between the United States and China. “We must recognize new exports opportunities emerging because of America-China trade war. Remember, solutions to both cyclic and structural problems are a must. Then only, we can get back to the high growth rate in 3-4 years,” he said.
Manmohan Singh further reminded the current state of the Indian economy as “India is in an extremely serious economic slowdown. The growth rate of 5 in the last quarter is the lowest in the six years. The nominal GDP growth is also at a 15 year low. Many key sectors of the economy have been affected”.