Article;
RBI cuts repo rate by 25bps economic growth unlikely to pick up any timesoon
Comment;
The pressure on
prices is and was not only because of demand but also because of supply-side,
and to a greater extent. The decision taken by RBI not to reduce aggressively
has once again put the ball back to the government’s court to hasten the
reforms process and put it back on the burner. The government has proved
itself, once more, a major road-block in the direction of growth and
development, poverty- alleviation, mainly. The government has failed at two
occasions. First, it could not ensure an efficient supply mechanism for food,
it lost the crucial time to act, and it is only preparing ground so far. All
the decisions are stuck for years. And, even in case of food grains which are
more than full in government storage and sometimes are rotten there. And,
secondly in FDI in retail an area in which the government failed to tell and
convince people that how it can help the Indian-Economy. In my view it will
help agriculture to become more profitable and would boost investment there.
Our total economy would be benefited by higher incomes because demand would
spurt. These both are not independent of each other and point towards the same
goal price stability which the FM committed while Fiscal consolidation. The
government needs to be more serious and quick if it has to address the issue of
growth, so far it has only created propaganda…
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