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The Indian Economic slowdown: They have the key to unlock the lock of crisis and draw the train again on it's track... but they need to be listened

 Dr. Abhijit Banerjee and Dr. Manmohan Singh
Image credit: News 18 - BloombergQuint


As we talked about the current economic slowdown in our last blog, which included an overlook of the Indian economy around the time of its independence and the significant growth which our country has observed since then, meanwhile the path had many hurdles and speed-breakers but every time New Delhi played the role of an efficiently driving force.

However, a similar kind of speed breaker is now alarming aloud, but successful as well as established economists like Dr. Manmohan Singh, Raghuram Rajan, Amartya Sen, etc are questioning the economic policies of the Modi Government since it's last tenure.

And a new name has been added in the list of criticizers, and that's of Dr. Abhijit Banerjee who's recently in the top charts of media after the declaration of him winning the Nobel Prize in Economic Sciences.

He has been on a rampage of interviews where he has stated the current stage of the economy as "very bad". And in this last edition of our trilogy, we will be discussing the possible solutions which can act as the exit gates from the current turmoil which are suggested by Dr. Banerjee and by Dr. Manmohan Singh himself.

Manmohan Singh, the renowned Indian economist who served India successfully as a prime minister of India for 10 long years had expressed his serious concern on the decaying health of the Indian economy and has also stated 5 points revive it in an interview to Dainik Bhaskar.

Dr. Manmohan Singh
Image credit: Youtube

So, first of all, talking about the fast fives of Manmohan Singh:

1) The implementation of GST, in turn, showed its dark side and the country is suffering from its consequences so "GST should be rationalized, it may be lead to revenue loss, for now, but it is needed".

GST
Image credit: DNA India

2) Stating the concerns on rural India, he said that "Government should focus on rural consumption & to revive the agricultural sector. Congress' manifesto can provide some measures to free up the agriculture market".

agricultural sector
Image credit: The Better India

3) Talking about the Banking sector, he said that "the government should address the liquidity crisis and not only the public sector banks but the NBFCs are also facing a crisis."

NBFCs
Image credit: Business Today

4) The unemployment rates are touching the sky and here Dr. Singh says that "in this scenario, the sectors like textile, electronics, automobile, and subsidized housing should be laid more attention as they can generate jobs and secondly for it the loan lending process should be made easy, especially for MSMEs".

unemployment
Image credit: IAS express

5) In the environment US-China trade war, several manufacturing firms of US are moving out of China and to converge that flow in India, he stated that "government needs to identify new export markets coming in front due to the trade war".

US-China trade war
Image credit: Yahoo

Manmohan Singh has been responsible for the Indian economic revolution of 1991 during the world economic crisis when he was the Finance Minister of India and in 2008 during the international slowdown, he was India's Prime Minister of India and once again he proved his expertise and held our country strong.

So the government should think of his suggestions deeply and implement them. And nextly there's Abhijit Banerjee, the recent Nobel laureate even met PM Modi to discuss the current situation.

Abhijit Banerjee & PM Modi
Image credit: The Hitavada

He even later on disclosed in public that in the meeting he suggested PM Modi to bring down the stake of government in public sector bank down to 50% in order to make their functioning freer and uninterrupted from tampering by the hands of the government.


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NOTE: All the opinions mentioned within the blog are made by respective people and are available on the web. So it should not at all be taken as a biased piece of text, it's the truth with proof.

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