Trouble is with demand. Firms protecting profit or preventing losses by pruning jobs and cutting pay. How will the gap in private consumption and public investment get filled? $20 bn of PLIs for 10 industries could give India a better tomorrow. Spread over 5 years. They won’t help today. Forward links — value India adds to products consumed globally — hasn’t gone anywhere. The contrast with China couldn’t be more striking. The bureaucracy has to shed its deep-rooted, Soviet-era suspicion of imports. India’s GST rate on exports must be zero. India has to persuade investors to set aside its reputation as a tough place to do business. With some luck, both today and tomorrow will look better.
A better tomorrow won’t fix India’s broken today.
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