The first step to fix it is to acknowledge that there is an economic slowdown, says the former Prime Minister.
Former
Prime Minister Manmohan
Singh believes Indian economy is facing a slowdown, which is both
structural and cyclical in nature. In an interview with Hindi daily
Dainik Bhaskar, he said the first step towards addressing it should
be to acknowledge the fact that we are facing a crisis.
Saying
that India was able to successfully handle the 1991 and 2008 crisis
despite not having a mandate as big as that of the present
government, Singh said the government needs to stop the habit of
headline management and start engaging with experts and stakeholders
to find a way through the problem.
The
former PM suggested five measures to revive growth:
1.
Rationalisation of GST,
even if it leads to loss in revenue in the short term.
2.
Focus should be on increasing rural consumption and reviving the
agriculture sector. He said government can take clues from Congress
manifesto, which lays down several measures in this regard to free up
agri markets.
3.
Liquidity crisis needs to be addressed. He said that not only public
sector banks but NBFCs also get cheated.
4.
Looking for ways to revive major job-generating sectors such as
textile, auto, electronics and also subsidised housing. He said easy
loans need to be provided for this purpose, especially to MSMEs.
5.
Government needs to identify new export markets opening up due to the
ongoing trade war between US and China.
Further,
Singh said government needs to address both structural and cyclical
problems to get back to the high growth rate in 3-4 years.
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