According to the latest data
available, it is clear that the investment by corporate has been falling since
long and this needs to be taken care of, as without and very low of investment
by corporate, government would not be able to increase growth. So the
government must ensure that there are some stimuli for the corporate to
encourage them to reinvest their earnings back into the economy.
Manufacturing
Manufacturing sector in India has
been lagging for many years and its contribution in total GDP has been falling.
From the following graph it is
clear that the manufacturing sector has been growing at a rate of around zero
per cent for the past two years. The national aspiration is to increase the
share of this sector in the GDP from the current 14 per cent to 25 per cent in
the next ten years. For this, we need to seriously incentivise the formation of
manufacturing enterprises mainly medium small and micro enterprises as these
enterprises cannot do their best without government supports. If MSMEs are
promoted properly, millions of jobs can be created for youth.
Agriculture
We have been witnessing very high
food inflation for many years in economy and this is creating huge ruckus and
it does not seem that this is going to over so easily and soon without well
thought strategy execution. So for the government it becomes imperative to take
right actions some short term and some medium to long term. Short term measures
can include MSP restraint, sell-off of excess food stocks, reducing import
duties etc. But in the medium to long term strategy, government must focus on
increasing farm productivity and changing some of corps patterns in different
parts of country. Apart from this government needs to put in place a well
thought strategy and plan to boost the agro-processing industries. And this
only cannot work for the farmers alone. There is need for a number of
agricultural produces companies that promotes and sells farm produces across
the country and these needs to promoted and encouraged by the states
governments as well as central government. NABARD can be made nodal agency for
the same. While establishing such companies government must take care of stiff
taxation and lack of policy support. Also there is need to link agriculture
research, university and farmers for better results. Water management and
harvesting must be encouraged. Crop diversification, and "more crops per
drop" should be the mantra.
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