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.

 

Suggestions :

 

  • 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.
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