SWAPNIL MATHUR

SEC-A

Following are some of the steps taken or must be taken by the government to
revive the economy:
1) Government announced the merger of its non performing bank to
reduce the NPA’s ,this is one of the bold steps which can increase
liquidity in the banks due to which more money can be circulated in the
market as result of which more investment can be done and the output
can be increased

2) Government must remove all e-commerce restrictions and should

provide special credits to export oriented labour-intensive industry this
would help to reduce the balance of payment and growth can be
ascertained.

3) Retail inflation is a major issues now a days specially food inflation is

touching new heights ,govt has taken decision to import a huge quantity
of onions from turkey to manage the supply and demand gap, if this is
done the real demand of money will get reduced and people will invest
the saved money

4) Tourism is one of the most promising sector government must invest in

tourism so that more foreign money can be floated in the economy
which can serve as an aid in the time of recession .

5) Government has announced a relief in the GST rates specially for

automobile industry as they are the most effected due to economic
slowdown ,this will surely help the sector to generate demand for
automobiles

6) In efforts to boost exports ,the government is working on a new WTO-

compliant duty reimbursement scheme that will replace the existing one
in phases, this step would would help in increasing income of the traders
as taxes in the new scheme will be minimized.
7) Government is planning to invest 100 trillion Indian rupees in
infrastructure projects which would help in generating the demand

because of higher income and due to it cost of production can be

reduced and investments will flow in the economy .

8) Government has directed the shipping ministry to facilitate the smooth

flow of goods across borders ,this is due to the fact that in this
parameter of ease of doing business india rank is not good it stood to
146 position in 190 countries, this can be an immediate measure to
tackle the downward trend in the economy as it will help specially to
export oriented industries and their profitability will get improved.

9) Government is also thinking on a proposal to cut corporate tax for

domestic firms to accelerate investments in manufacturing that would
open up employment opportunities which will kick off the slowing
economy.

10) Govt is also planning on investment on employment schemes like

MNREGA to increase the real income of poor which would lead in
investments by them which would help the economy to revive to some
extent.