Problems invite opportunities: There were many problems existing, which are now showing their adverse potential but how they can be overridden???

Image credit: latestly

The Indian economy is in such a phase currently that we Indians would not want it to be. Every common person has his or her opinion regarding the economy of his or her country while intellectual economists measure it through three magical words Gross Domestic Product, widely famous and known as GDP, right?

And just talking about our country's GDP we can't see the number at its lowest compared to the last 6 years. It's 4.5% !!!

We would not at all like to see this figure anymore. However, we should also know that what were the heavy circumstances dragged down the GDP number to its lowest performance in the last 6 yrs.

So, first of all, the agriculture sector is one of the most affected ones. As it's the major contributor in India's economy the other side is too frightening. It's the sector that provides the highest employment in our country however its not worth it as the farmers are not getting the proper price of their products and it results in the rise in the number of farmers committing suicides.

Image credit: Hindustan Times

Meanwhile, this period can be best in introducing a new scheme regarding the increment of prices in the market as well as taking initiatives to educate farmers to adopt some cultivation changes with respect to climate change.

And another sector which is directly dependent on the agriculture sector is the textile sector, which also employs a large chunk of people but the labour laws are too outdated and not feasible in the present time.

Major reforms are needed in framing new labour laws. Talking now about several trade reforms which came up during the tenures of two previous prime ministers P V Narshimarao and Atal Bihari Vajpayee.

The import duties and tariffs on artificial fibres are too high that the domestic market can't afford them fully which in turn lags it behind in the international market.

And nextly there is no demand for major products in the market, no one is buying so the industries associated with the manufacturing sector is going downhill, also the jobs are affected vastly, rising the % of unemployed people. The reason is the same, lack of demand.

The automobile sector is running too slow since last few years and the reason is very high tariffs imposed on their products and the lack of demand, as people don't want to spend more on such products.

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And the same mindset of people is affecting the overall consumption of private individuals which has fallen sharply in the last few years.

So overall the tariffs and duties imposed on products are inturn working as a hardship for both consumers as well as producers. The changes which the government can do here is to loosen the tariffs and duties.

This can also switch in demand for things overseas, however, the reduced tariffs will be nothing less than a blessing of domestic manufacturers as well as it will increase the competition globally. The decrease in tariffs can also increase private consumptions.

And alternately due to the increase in imports, the exports can be increased substantially as industries which will import raw materials and export the finished goods.

Both aspects, imports and exports are interrelated and issues regarding the tariffs needed to be listened and sought out by the central government as soon as possible means the there should be a sought of flexibility introduced in the imposition of tariffs.

The investments are experiencing the hardships as the investors are not in a mood of taking the risk in the environment of such an economic slowdown.

Another factor which can be balmed should be without any doubt should be "GST", there is not the problem with the law, the implementation game is a total hardship on the taxpayers. They have a shocking opinion that the government by making the process very hard, is trapping their money within their hands and not giving the tax returns.

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And talking about the taxes the middle class and poor class deserve the tax cuts and the government should find new sources of revenue from the market which doesn't harm the general flow of the personal expenditures of a common man.

Privatization can be a better option for a source of revenues for the government.

Now, lastly talking about the sector. The grand banking frauds are part of headlines for many years. Indian's borrow loans for several purposes and a common man is fully committed to paying it back, but due to some white-collared thieves among which some are not within the boundaries of our country are responsible for the rise in NPA to such a big figure, Rs 7.9 lac crores.

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And in this situation, the banks don't have sufficient money to provide loan to everyone, it has become a very tough job to get a loan nowadays.

So the government needs to address this problem in order to ensure capital in the market and provide credits to creditworthy customers and producers simultaneously.

Whereas, the economy can be back on track if and only if we see it as an opportunity and introduce some revolutionary changes as similar to the introduction of LPG [liberalization-privatization-globalization] Dr Manmohan Singh in 1991 economic crisis.

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