By Rohit Kumar
Since FY-2017-18 Indian economy is facing overall slowdown.
Demonetization & unplanned implementation of GST had already reduced the growth rate of India and put Indian economy in fractured form. But the economy pushed to it’s worst stage when a country wide lockdown had been imposed In the March 2020 to protect people from deadly attack of the corona virus which integrate this overall process of slowdown . Million of people lost their jobs not only in India but the Indian people working abroad too. many micro & small scale industries were shut down. Resulting into the lower growth rate, per capita income and reduction in Remmitance.
Recently the annual report released by Centre for Economics and Business Research (CEBR) India had overtaken the U.K. in 2019 to become the fifth-largest economy. “India has been knocked off course somewhat through the impact of the pandemic. As a result, after overtaking the U.K. in 2019, the U.K. overtakes India again in this year’s forecasts and stays ahead till 2024 before India takes over again,” The U.K. appears to have overtaken India again during 2020 as a result of the weakness of the rupee. CEBR forecast that the Indian economy would expand by 9% in 2021 and by 7% in 2022. “Growth will naturally slow as India becomes more economically developed, with annual GDP growth expected to sink to 5.8% in 2035.”Indian would overtake “Germany in 2027 and Japan in 2030. The U.K.-based think tank forecast that China would overtake the U.S. to become the world’s biggest economy in 2028, five years earlier than estimated due to the contrasting recoveries of the two countries from the pandemic.
But There are many challenges that Indian economy is facing recently The RBI expects the GDPgrowth at -7.5 per cent in the year ending March 31, 2021, in an upward revision from its earlier forecast of -9.5 per cent. Negative growth rate need few positive steps to take it upward or Positive side of GDP.
To surpass UK economy there must be a suggestive measure that the government must be taken in indan context.For demand creation money should be transfer in the public hand. Hence employment generation must be keep in the center by policymakers.wages in MANREGA should be increase, providing incentives & packages for those micro & small scale industries that went shut down from the lockdown. Tourism sector has faced a worst hit from the lockdown all the tourism & allied activities are stalled, those state where more then half of GDP is carried by Tourism & allied sector must be given compensation & relaxation in taxation. Those people who lost their jobs in lockdown and are enfoced to migrate in their native state must apply the Prime minister concept from “LOCAL TO VOCAL” And start a start-up by combination others like minded people. The initiative will be a bbetterway for income generation and it will also boost make in India initiative.
India can harness the true potential of it’s renewable energy in economy.So far we are doing so well in renewable energy program. India seems to be a world leader in renewable energy. Hence attracting foreign investment in this sector will generate employment and also boost India’s renewable energy sector. By using green means India can reduce its energy demand and boost approximately 3% of its GDP.
Agriculture waste to energy generation can be used to boost rural economy. Molasses to ethanol production and it’s blend with petrol will reduce the burden on crud oil import and will boost farmers income. The initiative will also give a push to double farmers income by 2022.
The government is considering a series of measures to boost the economy, including offering up to Rs 3 lakh crore in incentives spread over six years to create global supply chains in some sectors, tariff protection to key industries, further relaxation in foreign investment rules, and schemes aimed at the urban unemployed.
These initiative if taken seriously will definitely boost the Indian economy and surpass UK economy in 2028.
