Millennium Post

The start to a long fight

The Government of India has taken major initiatives to reduce the repo rate with a view of sustaining steady economic growth as the severe virus-induced recession hits home. This decision was necessitated by the need to ensure that the economy can withstand any type of external thrust that may come as a result of this crisis. While we must be thankful for this effective decision to combat the volatile economy headfirst, we must not become complacent. The bad times are not behind us and more needs to be done before we are all safe. We must plan ahead to accommodate any kind of eventualities that may evolve. Investment has stopped now due to the uncertainty of the market. The renewable energy installation has come to a grinding halt due to uncertainty of the export of the solar panels from China. The service and the manufacturing sector have been affected and the ambitious target of achieving a USD 5 trillion dollar economy is merely a dream at this stage. We should rather focus our attention on healthcare and other such related sectors in order to keep this crisis in check. The growth of GDP has plummeted but the observed mismatch between the supply and demand of essentials must not be allowed to stand. Nevertheless, investors are geared up and waiting with bated breath whether the economic measures floated by RBI will hold the economy in place for the long term. That said, the decision of the RBI governor, as I opine, is the need of the hour and is the only way forward for pumping investment into the core sectors in the face of a moribund economy. The decisions that have been taken by the Government in this regard have been appreciated by one and all.

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