As per the Economic point of view of the OECD, there will be an increase of 7.50 per cent in the strength of the Indian economy by the year 2020. A new income scheme will be set for the small farmers will help in rural utilization. There will be an increase in Investment growth because of the rise in capacity utilization, reduce interest rates, and geopolitical tensions. The political uncertainty will also be reduced. The decline in prices of the oil and the recent growth in the rupee will help in lowering the pressures of the expansion and the account.
Monetary policy can be relaxed somewhat because inflation remains much below the given target and expectations of the inflation are declining. Increase in the public sector borrowing requirements shows the introductions of the new welfare schemes, dull conditions of tax revenues and increasing fiscal requirements of public enterprises and banks. The decrease in the high public debt-to-GDP ratio needs the improvement in the collection of GST (goods and services tax) also for the personal IT (income tax) base expansion. Making a quick solution for the bankruptcy procedures will help in promoting the non-executed loans and the productivity will also be increased by promoting the redistribution of resources which will help in gaining more productive firms and areas.
As compared to other, India’s growth is the fastest in the G20 economies. The export growth is going well along with the export orders that are continuously rising. The GST (Goods and services tax) admin is improving steadily due to which the exporters get tax refunds quickly and many efforts are also being made to improve the logistics, trade infrastructure, and processes and the results are coming in the notice.
Investments are growing to the fullest and this is becoming possible only because of the support of the bulk public sector projects. On the contrary, private investment, especially in manufacturing, are being affected by the uncertainty just before the parliamentary elections, along with the constant difficulties faced during financing projects, purchasing land and for obtaining all necessary approvals. There has been a decline in the rural utilization, tractor, and two-wheeler sales because of the moderated price and wages of agriculture.
