video editor: Punat Bhatia/Deepthi Ramdas
Why did India’s GDP contract contract 23.9 percent in the first quarter of FY 2020-21? Why was the economic package of Rs 20 lakh crore not fruitful? How can the economy be brought back to track?
Talk to The QuintExperienced economist Rathin Roy explains what declined in GDP, crashed India’s economy and what can be done to overcome the economic crisis in the country.
What does the crashed explain to the economy?
The Indian economy started slowing down in 2016. The growth rate is constantly falling and our financial situation is deteriorating. The tax-GDP is a constant dip in the ratio.
Government expenditure is also falling due to limits on loans. And the disinvestment program has failed in the last three years, while many things about the spectrum, I think, was largely fake.
The central government became small and the growth also reduced. It was dull. The situation is such that the GDP growth fell by 5 percent even before the Kovid -19 epidemic killed us … the business collapsed and unemployment increased.
What should be the five steps to overcome the economic crisis?
By 2024, we have to create a slum-free India. We should learn from the crisis faced by migrant laborers, and should know that removing slums should be our priority.
We have to spend 300-400 percent more on both public and private, healthcare. The government should not change policies often and should give priority to the Railways on the airways. Finally, we should focus on the environment.
Why does the government hesitate to take big steps?
Some ministries have clearly underlined ideologies. So, wherever intention is, work is being done. However, there is a lack of intentions within the Ministry of Finance.
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