India was the fastest growing major economy in 2017 and goal is to achieve sustained double digit real growth.
However there are several challenges:
- Still 48% of our population is directly dependent of agriculture sector, however, its growth has stagnated and overall sentiment among the farmer themselves is negative.
- Most of overall growth in recent years has been a jobless growth, we are still unable to tap in demographic dividend.
- Women labour force participation is consistently on a decline.
- Manufacturing sector is facing competitiveness and structural issues.
- Overall credit lending capacity of banking sector is very low.
- Global trade wars are affecting India’s trade while several bilateral agreements are under pending negotiations.
Measures taken by government :
- Start up India, MAKE IN INDIA, Skill India.
- GST, Insolvency and Bankrupting code.
- Government is actively seeking investment agreements with other individual nations as well as regional agreements like RCEP.
- Infrastructure is being strengthened through institutions like Dedicated Freight Corridors, Sagarmatha, Bharatmata.
- Agriculture sector requires comprehensive reforms with regards to APMC, land leasing, contract farming etc.
- Labour law reforms, tax reforms and logistic sector reforms needs to be undertaken to make manufacturing sector robust.
- SMEs and Startups should be helped.
- Rather than solely focussing on converting unorganized sector into organized, inherent advantages of unorganized sector should be leveraged.
- Special Economic Zones should be reinvented.
- Services sector should be provided tax incentives, FTA signed with other countries should have favourable provisions with regards to domestic services sector.