Kickstarting growth in agri, infra to lead the way; local currency-based trade with neighbours will help
A week ahead of the scheduled end of lockdown, India is faced with the crucial question of restarting the economy in the face of unprecedented destruction of the global value-chain by Covid-19. The scale of destruction can further rise, depending on the impact on the US.
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Tasked with conducting policy-making in this evolving situation, the government is expected to keep faith on old warhorses ― agriculture and infrastructure ― for immediate revival of demand. As a longer-term strategy, it is likely to focus on manufacturing to strengthen domestic value-chain in select sectors.
The efficacy of the strategy will depend on scores of secondary sector reforms. The most important of these are finding a mechanism for fast-track implementation of infra projects and resolving issues with infrastructure finance, by reviving development finance institutions (DFI).
Source: The Hindu BusinessLine
