With reference to the editorial, “Quite an agenda” (October 12), it is good that the Economic Advisory Council (EAC) has a pragmatic approach and is accepting all the problems in the economy with an open mind and not brushing them under the carpet.
No doubt the economy has slowed and earlier projected gross domestic product numbers won’t be achievable, as confirmed by both the Reserve Bank of India and the International Monetary Fund. But it won’t be right to blame demonetisation and the goods and services tax (GST) only for the current state of the economy. Everyone knew there would be teething problems with the GST. Fortunately, the GST Council is willing and open about resolving some issues; hopefully, all the glitches will be sorted out soon. EAC head Bibek Debroy has stated the panel will provide clearly defined recommendations that can be implemented swiftly.
Fiscal prudence is key here. Also, unless private investment revives, not much will change in the economy. With capacity being underutilised at present, it is anything but an easy task. A good monsoon will likely spur demand, but that alone won’t be enough to raise consumption across sectors and revive capex investment by Indian Inc.
The government needs to push reforms, take bolder steps and closely monitor its ongoing projects and initiatives.
Bal Govind Noida
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