Apart from intent, innovative thinking and timing, there are two other equally important factors that will determine the outcome of these measures: the design of the schemes and the implementation
The Monday measures to boost consumer demand and capital expenditure are unlikely to move the needle much on durable growth recovery
Borrowings can at best be a temporary solution; Centre along with its siblings must explore more durable measures to shore up tax revenues
Those in favour of a tax cut point to the strong backward linkages of the auto sector that would help in accelerating economic growth
The plan to privatise some of the banks like Punjab & Sind Bank, Indian Overseas Bank and Bank of Maharashtra is downright outlandish
States’ proposal to extend the time period looks sensible at a time when Centre’s ability to pay them their dues looks limited
Public sector capital expenditure remains a major tool in the hands of the government to propel the economy forward
These reforms will not only professionalise the entire value chain but also allow the farmer to access both capital and technology to modernise farming.
Large investment in infrastructure, both by the government and the private sector, will be required to give a choice to farmers to sell to a buyer of their choice.