{"id":4118,"date":"2019-08-21T20:50:08","date_gmt":"2019-08-21T15:20:08","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=4118"},"modified":"2019-08-21T20:50:08","modified_gmt":"2019-08-21T15:20:08","slug":"india-few-steps-away-to-become-the-third-largest-economy","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/india-few-steps-away-to-become-the-third-largest-economy\/","title":{"rendered":"India Few steps away to become the Third largest economy"},"content":{"rendered":"

Relevance: mains: G.S paper III: Indian Economy<\/strong><\/p>\n

    \n
  1. Fiscal Consolidation:<\/strong>A target of fiscal deficit of 3 percent of GDP must be achieved by 2016-17 \u00a0and must always be kept below that level.<\/li>\n
  2. Current Account Deficit:<\/strong>Since the economy will run a Current Account Deficit every year for some more years, it can be financed only by foreign investment, whether it is FDI or FII or ECB or any other kind of foreign inflow. Therefore, foreign investment must be encouraged.<\/li>\n
  3. Price Stability and Growth:<\/strong> In a developing economy where the aim is high growth, a moderate level of inflation will have to be accepted.\u00a0 RBI must strike a balance between price stability and growth while formulating monetary policy.<\/li>\n
  4. Financial Sector Reforms:<\/strong> The recommendations of the Financial Sector Legislative Reforms Commission must be implemented immediately as they do not require any change in legislation.\u00a0 Also, a timetable must be drawn for other recommendations that require \u00a0legislation.<\/li>\n
  5. Infrastructure:<\/strong> The country must rebuild its infrastructure and add a huge quantity of new infrastructure.\u00a0 Every proven model must be adopted but the \u00a0PPP model must be more widely used.\u00a0 New financing structures must be created for long term funds and pooling of investments.<\/li>\n
  6. Manufacturing:<\/strong>\u00a0 The Government \u00a0must focus on manufacturing and especially on manufacturing for export.\u00a0 All taxes, Central and State, that go into an exported product should be waived or rebated.\u00a0 There should be a minimum tariff protection so that there is an incentive to manufacture goods in India rather than import them into India.<\/li>\n
  7. Subsidies:\u00a0<\/strong>\u00a0Given the limited resources, and the many claims on the resources, the Government must choose the subsidies that are absolutely necessary and give them only to the absolutely deserving.<\/li>\n
  8. Urbanization:<\/strong> The country\u2019s cities will become ungovernable, and perhaps unlivable, if attention is not paid \u00a0to\u00a0 the decay in these cities.\u00a0 Cities have wealth and also create wealth.\u00a0 But that wealth should be tapped for resources to rebuild the cities with a new model of governance.<\/li>\n
  9. Skill Development:\u00a0<\/strong>Skill development must rank alongside secondary education, university education, total sanitation and universal health care in the priorities of the Government.<\/li>\n<\/ol>\n
      \n
    • Sharing responsibility between States and Centre:\u00a0<\/strong>States have the fiscal space to bear a reasonable proportion of the financial costs of implementing flagship programmes and must willingly do so, so that the Central Government can allocate more resources for subjects such as defense, railways national highways and telecommunications that are its exclusive responsibility.<\/li>\n<\/ul>\n

      Conclusion : In future, the fortunes of China and India will have a significant impact on the rest of the world. Therefore, the Indian Government must be responsible not only to itself\u00a0 but to the whole world by\u00a0 keeping the country\u2019s\u00a0 economy in robust health.<\/p>\n

       <\/p>\n","protected":false},"excerpt":{"rendered":"

      Relevance: mains: G.S paper III: Indian Economy Fiscal Consolidation:A target of fiscal deficit of 3 percent of GDP must be<\/p>\n","protected":false},"author":1,"featured_media":3299,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[42,43],"tags":[392],"class_list":["post-4118","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-studies-iii-technology-economic-development-bio-diversity-environment-security-and-disaster-management","category-indian-economy","tag-union-public-service-commission-upsc"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/4118","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/comments?post=4118"}],"version-history":[{"count":1,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/4118\/revisions"}],"predecessor-version":[{"id":4119,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/4118\/revisions\/4119"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media\/3299"}],"wp:attachment":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media?parent=4118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/categories?post=4118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/tags?post=4118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}