At a time when the Indian economy is already in deep trouble that is only getting intensified as slowdown spreads across newer sectors, Central government has finally announced a basket of measures, with hopes for a revival. These measures, which many experts have opined, is akin to a mini budget in terms of width and importance and was inevitable since there is little choice now as the economy is in dire straits and any delay will only aggravate the situation further. FM’s hint that this is only the first installment with many more in pipeline is also an ample testimony to the fact that the economy which aspires to be a mammoth 5 trillion dollar one within next six years in gasping for breath. And since it’s a decay that has developed since past few years, it is apparent that nothing magical is going to happen overnight, with coming months serving only as indicators whether this package is going to be enough for a turnaround.

Extraordinary slowdown of the economy has been one of the most talked-about issues during last one year particularly during the last general elections. GDP growth has nose-dived to a nearly five-year low of 5.8 per cent in January-March quarter.The great slump that has gripped the auto sector is the worst of its kind in last 20 years and reports continue to pour in about massive job losses. Already 3,50,000 employees in this sector which is always considered a trusted and sustainable employment avenue are jobless and experts believe that the effect might very well spill over to others too. Real estate has also been hit hard as the number of unsold homes has increased and FMCG companies continue reporting decline in growth. But it is a fact that above sectors are always considered the most reliable indicators of health of any economy and hold true for Indian economy as well.

It needs no retelling that liquidity crunch in market is at a high and the idea to infuse Rs 70,000 crore into public sector banks will draw appreciation. Decision on pending GST refund to MSMEs within 30 days and mitigation of future ones within 60 days is an welcome relief too just as the initiatives for ensuring cheaper loans for purchasing vehicles, houses and consumer goods are. Relief for BS-IV vehicles and doubling of depreciation to 30 per cent for vehicles are also expected to give some breathing space for the auto industry.

Although it might seem late, it is encouraging that the true ailments of the economy have at least being acknowledged and rectifications initiated. The immediate next months will thus be keenly observed when it will be revealed how effective the dose had been. 

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Kenter Joya Riba

(Managing Editor)
      She is a graduate in Science with post graduation in Sociology from University of Pune. She has been in the media industry for nearly a decade. Before turning to print business, she has been associated with radio and television.
Email: kenterjoyaz@easternsentinel.in / editoreasternsentinel@gmail.com
Phone: 0360-2212313

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