Vectoring The 3Fs Is Crucial
Business Today|January 21, 2019

FARM DISTRESS RESOLUTION, FACILITATING JOBS AND FOCUS ON FISCAL PRUDENCE SHOULD BE THE GOVERNMENT’S PRIORITIES.

Dharmakirti Joshi
Vectoring The 3Fs Is Crucial

It would be fair to call the just-concluded 2018 a year of recovery as the economy rebounded from demonetisation and glitches in the levy of Goods and Services Tax (GST). A moderate pick-up in growth and low inflation despite spiralling crude prices also helped. But inflation was low mainly due to weak food prices, which meant farmers were – and are – in pain. Plus, the country did not escape the global tailspin in equities. The selloff in emerging market bonds also hurt currencies of countries with current account deficits and India was no exception.

So where do we go from here? Given that the external environment will remain stormy, with the US interest rates higher and protectionist winds still threatening growth and trade, India will have to lean on domestic factors in fiscals 2019 and 2020, and perhaps beyond that.

Essentially, the new year will be about staying on the curve, which will require fixing domestic priorities and doggedly pursuing them even as new global challenges loom. That is why the policy stance of the government becomes all-important this year. Of course, monetary and fiscal stimuli or farm loan waivers can push the growth cycle, but they do little to lift the growth potential of the economy or the trend rate of growth. The government, therefore, needs to focus on what can be called the ‘three Fs’.

F1: Farm Distress Resolution

This story is from the January 21, 2019 edition of Business Today.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the January 21, 2019 edition of Business Today.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM BUSINESS TODAYView All
"Focus on the challenge of each customer"
Business Today India

"Focus on the challenge of each customer"

SHASHANK KUMAR MD & CO-FOUNDER I RAZORPAY Razorpay is India's first full-stack financial solutions company

time-read
1 min  |
December 08, 2024
PEDAL ON THE FUTURE
Business Today India

PEDAL ON THE FUTURE

THE MG WINDSOR EV, WITH ITS FUTURISTIC AND MINIMALIST DESIGN, COMBINES THE BEST OF BOTH WORLDS-COMFORT AND TECHNOLOGY

time-read
1 min  |
December 08, 2024
BREATHE EASY
Business Today India

BREATHE EASY

Whether you're battling allergies, looking to remove pollutants, or simply want to breathe easier, the right air purifier can make a difference

time-read
2 mins  |
December 08, 2024
The Taste of India in a Glass
Business Today India

The Taste of India in a Glass

FROM ROYAL LIQUEURS TO DISTILLED MAHUA, INDIAN HERITAGE ALCOHOLIC BEVERAGES ARE HAVING THEIR DAY IN THE SUN

time-read
4 mins  |
December 08, 2024
LOOK BEFORE YOU LEAP
Business Today India

LOOK BEFORE YOU LEAP

IN 2025, INVESTORS WILL NEED TO FACTOR IN VOLATILITY ACROSS ASSET CLASSES

time-read
5 mins  |
December 08, 2024
MISSING ADVISORS
Business Today India

MISSING ADVISORS

INDIA HAS JUST ONE INVESTMENT ADVISOR FOR NEARLY EVERY 200,000 INVESTORS. AT A TIME WHEN RETAIL PARTICIPATION IN THE STOCK MARKETS IS BOOMING, THIS ASSUMES SIGNIFICANCE

time-read
7 mins  |
December 08, 2024
TURNING A CORNER
Business Today India

TURNING A CORNER

SHARED ELECTRIC MOBILITY START-UP YULU'S SHIFT TO SERVICING THE QUICK COMMERCE SECTOR IS HELPING IT GROW FAST. IT IS NOW FOCUSSING ON IMPROVING ROAD SAFETY FEATURES AS IT TURNS EBITDA POSITIVE

time-read
5 mins  |
December 08, 2024
REALITY CHECK
Business Today India

REALITY CHECK

INDIAN STOCK MARKETS PLUNGED BEGINNING OCTOBER FOR A HOST OF REASONS, INCLUDING A FALL IN FII OWNERSHIP. HOW DEEP WILL THE CORRECTION BE?

time-read
6 mins  |
December 08, 2024
TRUMP'S TRADE TANGO
Business Today India

TRUMP'S TRADE TANGO

The return of Donald Trump as the 47th President of the US has put the global economy on edge. India, too, is unlikely to remain unaffected. How will policymakers meet this latest challenge?

time-read
9 mins  |
December 08, 2024
"The essence of the Trump administration will be transactional”
Business Today India

"The essence of the Trump administration will be transactional”

Global investor, analyst, and best-selling author Ruchir Sharma decodes why Donald Trump won the elections, what India should do, the risks, and more

time-read
10 mins  |
December 08, 2024