INDIA: A way forward for growth

The global economy is going through a change, which is inevitable. Slowdown in Chinese markets, long waited US-Federal Reserve rate being unchanged, fluctuations in oil prices etc., are the major concerns of any economy globally. Advanced Economies are having growth which has come to a standstill. The emerging and developing economies have also witnessed a slowdown in its growth. Except South Africa and India, other nations which are part of BRICS are slumping towards negative growth. India’s economy is expected to grow at 7.6% percent during the current year, having potential to increase. 

Central Government hints at private investment and consumer sentiment would revive the economy. Its initiatives such as ‘Make in India’, ‘Skill India Mission’ and ‘Digital India’ are evident for this. These initiatives would stress on quality and sustainability of service sectors which is contributing towards 57% of GDP. However, IT, ITeS, e-commerce and other professional services are oriented towards the external market. One of such goals which bring onus both on RBI and Central Government is their focus on inclusive growth. RBI has taken policy initiatives towards this through selective credit control, priority sector lending norms, lending to weaker section of society and other policy of financial inclusion. RBI’s policies on expansion of branch to rural and semi-urban areas are also quite evident with regard to its initiatives. The two newly licensed full-service banks (IDFC and Bandhan Bank), eleven payment banks and ten small finance bank (8 are MFIs), would provide thrust on reach ability and accessibility of finance thereby contributing to a sustainable and inclusive growth.

With ease of deadlock on land acquisition bill and GST, would provide a great opportunity for investment and drive up growth.