Budget 2013- What is needed to stop the slowdown

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ashish
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Joined: Sat Nov 03, 2012 12:00 pm

Re: Budget 2013- What is needed to stop the slowdown

#1 Postby ashish » Wed Feb 27, 2013 9:55 am

Although I feel there is not much our finance minister can do on the growth of economy for now. Lot has already been done since 1992 & also Indian economy is currently closely linked with the US & Europe's. The moment US & European economy go for a ride, Indian economy follows the suit. Hence we do need to be patient till global outlook improves. But few things that can at least help in stopping the slowdown could be :
1) Controlling the inflation by lowering subsidies & improving the public distribution system to avoid wastages. On one hand we see food prices spiraling
while on other tonnes of food grains rot due to storage & transportation problems.
2) Implementation of GST can help in increase transparency in tax collection & reducing the corruption.
3) Increasing investment in infrastructure can not only help in reducing imports but also can help in creating new jobs.
4) Currently there is very little room for RBI to cut the interest rates. Some fiscal measures to ensure that interest rates are brought down can increase the investments from the corporates & foreign investors.

prashant
Posts: 50
Joined: Sat Nov 03, 2012 11:57 am
Location: Noida

Re: Budget 2013- What is needed to stop the slowdown

#2 Postby prashant » Wed Feb 27, 2013 9:51 am

I would say "Less investment leads to less growth" during the last decade or so this has been the main reason behind India's inching towards "Slow down' regime. While the capital inflow in the economy from various sources including Foreign Institutional Investments (FII) has sharply decreased over the years, the downward trend of money value of Indian Rupee has continued to exist.

Both these factors have affected growth. Further elaboration to it is the fact of country’s adverse balance of payments position due to international price hike of commodities which we heavily depend on such as crude oil,e.t.c. Also frequent threats to political stability of the government at the center and widespread malpractice and corruption in the socio-political scenario have prevented government from taking any firm decision on progressive economical policies. Thus an overall congenial atmosphere needs to reign in again so that more investment in our economy can take place reviving India's growth.

for instance if while the Indian economy was growing at a rapid pace, it was also accumulating capital or adding to productive capacity, at an even faster rate. An economy needs investments not only to boost productivity that comes from building new roads, power plants or industrial estates, but also to generate employment and incomes. Without the latter, it is not possible to even sustain consumption beyond a point. it would be naïve to expect Indians to continue to spend merrily when companies aren’t really hiring and even existing jobs are under threat

Also if the ongoing India Slowdown Story has largely to do with investment activity on the ground, the responsibility for fixing it lies primarily with the Government.

It can do so first by streamlining procedures for land acquisition or environmental and other statutory clearances. Secondly, the Government should set its own fiscal house in order, which will release resources for deployment in railway or irrigation projects rather than untargeted subsidies and other unproductive current expenditures.


Thus Only investment can bring back growth again :0

archit
Posts: 144
Joined: Thu Dec 13, 2012 4:25 pm

Re: Budget 2013- What is needed to stop the slowdown

#3 Postby archit » Wed Feb 27, 2013 9:41 am

Bringing Back India on growth path is a holistic approach and Financial planing is a very crucial part of it..more than planing it is very important that we execute those plan effectively..for eg. in last budget Policies like Loan waiver and NRHM were introduced but it was a utter failure... Market expects to build a healthy environment where they have opportunity to grow. Financial plans should have following highlights:

>Encourage retail investors to invest in market(this could be a major boost for Indian companies if they can get more money from retail investor rather depending on FII or FDI)
>Reducing Import duties and export charges to Boom Industrial growth
>Development plan for tier 2 and tier 3 cities to increase employment opportunity and business development
>Effective plan to control inflation on necessary commodities like fuel and food
>Restructuring plan to improve health of PSU's
>Reduction on Defense expenses, India need job, food and house not war.
>Control plan to stabilize Rupee Value.
>Special financial Plan to boost service industry(Specially IT) as India is known as brain of world

These are some of the points if taken care can bring back India to growing path.

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avinash
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Re: Budget 2013- What is needed to stop the slowdown

#4 Postby avinash » Wed Feb 27, 2013 9:41 am

Yes, It is about to be announced.. I see some areas that has to be focused by Mr. Chidambaram that contribute in growth of India.

Education and skill development are the major areas that need to be addressed. A quarter of the country's population is still illiterate, and the little progress made in these directions is slow. This needs to be focused.

Healthcare is another area that is yet to develop fully and become more favorable. The upcoming budget should focus on this sector, too.

Tax policies should be pulled slightly, including services tax, rebate for senior citizens.. etc.

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KaranL
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Re: Budget 2013- What is needed to stop the slowdown

#5 Postby KaranL » Wed Feb 27, 2013 9:38 am

Yes India is going through the slowdown , GDP growth is also getting slowdown
At this point of time , following Reforms should be implemented by Finance Minister :

1) Bank Interest rate should for getting deposits should be increased .
2) Govt. may charge certain percentage and convert black money into white money .
3) Investments in form of FII'S AND FDI'S should be encouraged .
4) Govt. should encourage the export business as this helps in generating international currency .
5) Moreover govt. should focus on agriculture business and try to remove intermediaries as this would feed farmer with more revenue and farmer would be stimulated to do more farming and then revenue can be generated through selling farm products and our economy may boost up .

Kalpit
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Joined: Mon Feb 11, 2013 3:52 pm

Budget 2013- What is needed to stop the slowdown

#6 Postby Kalpit » Tue Feb 26, 2013 5:27 pm

Budget 2013 of India is about to be announced. What should the Finanace Minister do to stop the slowdown and bring back India on growth path.


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