Question; India needs to pursue reforms more effectively if it wants to benefit from the decline in China’s economy. Examine.
Answer:
Since 2013-14, Indian GDP growth has been on a gradually rising trend.
Since 2013-14, Indian GDP growth has been on a gradually rising trend.
Why China 's decline: Non-market economy China, given its export- and investment-led growth
model (with 45 per cent-plus investment rates), continued to build new
capacity in tradable goods unmindful of the declining profitability. The
consequent excess capacity put increased pressure on the profits and
reinvestment of the globalised Indian corporate sector
- Agriculture sector reforms:
- Infrastructure
- Irrigation
- Land reforms
- Marketing
- Direct Marketing / Contract farming
- Insurance - Farm Income
- Manufacturing Sector reforms:
- Make in India
- Labour reforms
- Reforms in factory act
- Energy / coal issues
- Infrastructure
- Land acquisition
- Tax rationalisation
- GST
- Bkd Fwd linkages
- Skills - employable
- Services Sector reforms:
- Skills
- Tax sops
- Export competitiveness
- Credit requirements
- Administrative reforms:
- Tax rate rationalisation
- no Tax terrorism
- Ease of doing business
- Boost demand
- Instill confidence in markets
- Attract foreign investments
- government must ensure that on both the tax front and ease of doing business the changes reach down to the ground level where the vast majority of businesses (tiny, small and medium) operate.
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