Tough steps needed to repair the economy of India

As the new government takes charge, it was clear that some tough and unpopular steps might be taken in the upcoming time. And on 13th June, PM Narendra Modi warned of tough measures to repair the economy. “Taking tough decisions and strong measures in the coming one or two years are needed to bring financial discipline which will restore and boost the country's self-confidence," he said. 

"I am well aware that my steps may dent the immense love that the country has given to me. But when my countrymen would realise that these steps would result in getting the financial health back, then I will regain that love," said the PM Narendra Modi.

And, moving in this direction, the government has taken the first tough step by raising the rail passenger fair by 14.2 percent and freight rates by 6.5 percent.

Union finance minister Arun Jaitley has defended the step taken by railway minister, saying the railway can survive only if users pay for availing facilities. “India must decide whether it wants a world-class railway or a ramshackled one…. The railway minister has taken a difficult but a correct decision…. The Indian Railways for the last few years have been running at a loss,” Arun Jaitley said in his Facebook page post on Saturday.

The government may announce the following tough steps also in the upcoming time:

1. Diesel subsidy will soon be phased out; a monthly increase mechanism for LPG and kerosene may come

2. Spending curbs, focus on revenue deficit

3. The scope of the food security bill could be scaled down to target only the poor

4. PSU banks merger

5. Fertilizer subsidy rationalization

6. Amendment to land bill, infrastructure development and industrialization will suffer if it is not reworked

7. Fiscal consolidation

8. Labour reforms

9. New taxes or higher rates

10. Slower MSP increases 

11. PSU reforms

12. Food Corp & CIL recast

13. Rejig in tax slabs or higher exemption rate

14. Recast of NREGA 

I personally feel that, to restore the Indian economy PM Narendra Modi would require some unpopular decisions, and it is also a big challenge for the PM Narendra Modi to handle the opposition and protest against these bitter medicines. 

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References: The Economic Times

Image Credit: archive.indianexpress.com, www.thehindu.com,