Not one, but complex and diversified reasons are assigned for the performance of Indian economy and the growth indicators assigned for the financial year 2019.
Apart from the political, financial, unexpected setbacks, global trade wars, bi/multilateral collaborations, the Indian economy pattern has the strength and tolerance to surpass varied barriers with its dependence and contributions from indigenous and diversified factors like agriculture, manufacturing, import-export, service sector, IT and others.
Results:
- Demonetization – 2% fall in GDP.
- Cooperate investment – 60% loss.
- GST implementation – most complex, confused and complicated tax system in practical implications.
- Unemployment and unexploited human resource capital- rural wage growth is 1.1% against 14.6% in 2014.
- Privatization of government and government recognized institutions and organizations v/s private companies.
- Bank frauds- 74% increase as reported by RBI, (INR 71,000 crore last year).
- Private sector loans, unrecovered and illegally written off – 2.4 lakh crores.
- Global trade war- USA and China.
- Brain drain of intellectuals, experts and passionate youths.
Strategies and Solutions
Announcement of Finance minister Nirmala Sitharaman moves the hearts and brains of India’s business. The tax reduction from 30% to 25% including surcharges is a major achievement happened in the Indian finance scenario.
As an initiative of Make in India, the new registering companies after October 1, only need to pay 15%of tax till 2023. This change embarked a peak rise in the share market and the Sensex reported increase in 1600 points and NIFTY by 450 points. To overcome the drop down of financial atrocities, Real estate and export have got good package of investment to run the departments.
Solutions :
- Liberalizing FDI rules will significantly attract, stabilize and accelerate economic growth of India in a global perspective and touch.
- Rolling back of recent tax hikes on foreign and domestic equity investors.
- To concentrate more on industries with attractive boosters to accelerate market confidence.
- 100% foreign investment for coal mining associated infrastructure and sales of fuel.
- Bank merges and financial institutional reformation will revive the economic growth.
- Placing and appointing dedicated, resourceful, and right people as advisors, intellectual experts to lead the nation with productive, effective and unconditional passion and action.
- Welfare of farmer and revolution in sectors like agriculture growth and agriculture business is to be given the highest priority.
- Improving the quality of life – high HDI, and sustainable growth indices.
- Strict laws for tax collections, payment, receivables and allocations.
- Prioritized, highly vision planned and strategized budget with clear demarcations for allocation, fund implementation, monitoring, evaluation and strictly enforced in all levels.
- Corruption, fraud and false currency, eating up and fund management of loans, and subsidies to be scrutinized and prevented and punished from mal practice and illegal operation.
- Transparent governance and freedom for participation in opinions, polls, and suggestion with citizenship participation, positive criticism to accelerate, boost and gear up the Indian economy.
So, what can we conclude?
Irrespective of the ruling power and political inflations, every Indian citizen is to be made responsible to strictly adhere to the financial policy practices in fostering a comeback.
Tax payment, obeying and getting involved in practicing government compliances, keep away fraudulent transactions, unauthorized payment practices, preventing money laundry, fair accumulation of wealth and assets, committed tax payment for all dealings, preventing unhealthy promotions and comments on regulations and legislations will together make the Indian economy- a proud economy across the world.
