Economic circumstances are converging to create conducive conditions for reforms that could quell the risk of stagflation
As the page turns on an egregious 2020, a rebuilding opportunity is upon us. Around the world, the pandemic has caused havoc in public health and had an unprecedented impact on economies. For India, the timing was particularly unfortunate, coming as it did after the demonetization of late 2016 and the credit market slowdown of 2019. The Indian economic engine stalled in 2020-21 just as it was beginning to sputter to life.
There is no magic to a calendar turn of the year, but taken together with the encouraging news that effective vaccines can be administered soon, it is time for the country to begin the task of reconstruction. The Indian government may be tempted to continue its current approach of incrementalism. It has been timid in its fiscal response and has not gone far and fast enough to make the conduct of business any easier. Precise, bold strokes are needed. Here is a set of reform measures that should put us back on a growth trajectory.
Source: livemint
