Narendra Modi ‘s fight for gloomy global economy
pm Narendra Modi is trapped between a rock and a hard place. Growth in Asia’s third-largest economy has been measured slow for the past five quarters, thanks principally to the frenzied roll out of the goods and services tax and a surprise ban on currency notes to pin down tax evaders. That’s glimmer talk of incentive measures to boost expansion from the slowest pace in three years. But his options are limited.
Slow-moving output means revenue collections haven’t kept pace a "The revenue uncertainty this year because of GST implementation and likely slippage in non-tax revenue should make a boundary for the government’s ability to amplify direct spending considerably," said Credit Suisse economist Deepali Bhargava.
Modi’s administration, which took power in 2014 promising to generate jobs, is fighting a public perception of economic mismanagement after growth fell below 6 percent in the June quarter. On top of it, foreigners are dumping stocks at the fastest pace .
Highlighting the need to battle a gloomy global economy, Modi on Monday announced the formation of a five-member panel to advise him on economic issues as he faces a slew of provincial elections in the coming months and a general election in 2019. He also revealed a $2.5 billion program to make sure electricity for all households, which may help boost the rural economy.
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