The Reserve Bank of India (RBI) initially projected that the Indian economy growth would be at 7.4% for the financial year (FY) 2020. However, it proves to be wrong as the current GDP remains 5% in the first quarter of the fiscal year.
Despite the chairperson of India’s Finance Commission, N.K. Singh’s optimistic claim of substantive recovery, the economy for the current fiscal seems lagging.
As revised by the State Bank of India, the Indian economy growth is now projected to be at 5% or lower for the FY20.
Former Prime Minister Attacks Modi Government
Dr. Manmohan Singh, the former Prime Minister, criticizes that the current GDP growth is the lowest in the last 15 years and the Indian economy is at the brink of collapse.
Referring to the economic situation, he attacks the Modi Government and its poor economic policies that discourage a large number of investors, industrialists, bankers, and businessperson.
The central problem behind the downfall of the Indian economy is due to low circulation of money from investors and reducing the consumption demand by people.
Dr. Singh attacks that the present government is responsible for the unprecedented high-rise of unemployment, low household consumption, and bad banks’ loans which affect the proper circulation of money.
Reformation of Economic Policies to Curb Downfall
To address the current economic problems, the government had already taken up certain measures including the mergers of sector banks, revising the corporate tax rate from 30% to 22%, lowering tax for manufacturing companies, and tax benefits for the startups.
However, the GDP growth remains low and the government’s initiatives are yet unable to curb the existing core problems.
The government now focuses to reform the existing legal provisions of the Foreign Exchange Management Act (FEMA), 1999 as a part of its economic restructuring policies.
The government is willing to remove certain restrictions against foreign investors to attract more investment in India which will help to restore the proper flow of money.
Now, several overseas direct investments (ODI) and foreign direct investment (FDI) can come in India without the prior approval of RBI.
Bill Gates, the co-founder of Microsoft Corporation, shares an optimistic view about the possibility of the rapid economic growth of the country over the next decade.
During his three-day visit to India, he shares a view that improving the health and education of the people basically helps in strengthening a country’s economy.
Working over more than a decade, the Bill and Melinda Gates Foundation focuses to work for healthcare-related activities and financial aid services for the disadvantaged sections of people in India.
I’m Roshan, a journalist, blogger and music lover. I like covering global news related to finance, business, and technology. Focusing on the collection of true and reliable information, I rely on working by conducting interviews with business leaders and talking to the inside sources of companies.
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