Expert dwells on need for stimulating small scale sector

Chandigarh, November 24

The Chetna Manch, Chandigarh, organised a seminar on ‘Demystifying economic slowdown in India’ here today. More than 100 intellectuals of the city participated.

Professor (Dr) Upinder Sawhney, Professor, Department of Economics, PU, delivered the key address. She said India was passing through an economic slowdown, the causes of which are internal to our economy — cyclical and structural. The current economic slowdown has been triggered by some decisions such as demonetisation and flawed introduction of the GST. He said the financial sector was facing instability because of mismanagement and frauds in the banking sector which led to the ruptured demand cycle and caused unemployment.

“What is required is a massive public investment in economic and social overhead capital, rural and agro-industrial development and boost demand,” she added.

Dr Rajiv Khosla, Associate Professor, DAV Institute of Management, said the root of the problem was vested in the idea of bringing the mass unorganised sector into the ambit of organised economic activities to keep a check on the unaccounted transactions and to fill government treasures.

He added: “Although the government is now trying to revive the economy by giving tax rebates to the corporate sector and recapitalisation of banks to jumpstart investment, yet, these steps seem misplaced keeping in mind that the problem lies at the bottom of the pyramid.”

He suggested fiscal stimulus to the agriculture and small scale sector through social schemes and direct tax rebate, along with wealth and inheritance tax on the rich, can save the Indian economy. — TNS