Indian economy, which has enticed oodles of investors across the world, is trying to uplift itself in the adverse conditions. After the release of GDP this year, the economy is presumed to have slowed down massively, growing by 5 per cent only, lowest since the 4th quarter of the financial year 2013, according to the figures released by the government.
GDP figures have been astonishing and raised questions as to how the economy will be coming back on the track. To repair the damage, Prime Minister Narendra Modi is planning out strategies to enable a positive growth in the economy. Further, the Modi-led government is addressing all problems- monetary, social and environmental which are weakening the country’s growth.
Modi Government Aiming for a Better Economy
Recently, the Indian government is taking initiatives to restore a positive and high-yielding economy. Alongside this, the government is trying to attain its motive of making India a $5 trillion economy.
1. The merger of PSU Banks
In the past, the public sector banks have faced monetary problems and further, the count of defaulters has raised in the market. Owing to this, the government has decided to integrate all PSU (Public Sector Undertakings) into four banks.
With this move, banks can use capital optimally, lead effective operations and increase profitability.
In a bid to shore up the business ecosystem, the Indian government has changed the FDI policy. To increase foreign participation, the regime relaxed local sourcing norms for foreign companies. This, in turn, has increased the interest of tech giant, Apple to foray in the country by next year. Further, the single-brand retail firms have been encouraged to set up online retailing stores besides initiating physical stores in the primary stage.
Besides this, the government has permitted 100 per cent FDI in the coal mining and contract manufacturing industry. Digital media is also brought to the attention and FDI has surged to 26 per cent.
3.Reinforcing Textile and Realty Sector
In the past, the real estate sector has been badly hit and consequently, it has plummeted. To support the realty and textile sector, the government has eased regulations in the two industries. Introduction of RoDTEP, FTA and creating a window for mid-income housing are some of the moves taken by the central government recently.
Owing to the rising air pollution in the country, the government is incentivizing companies to adopt the e-mobility concept. In Budget 2019, the government has allocated INR 100 crore for EV fund. Further, it has asked automobile companies to manufacture more electric vehicles to reverse the diminishing effects of pollution.
To fix the economy, the government has made above-cited instrumental moves so far.