How India can come out of Recession

With global recession gripping each and every part of the world economy the effect of it on Indian economy is inevitable. Statistically speaking it would not right to say that Indian economy has entered in a state of recession but by and large the India Inc is facing a slowdown rather a meltdown. So looking at the tumbling big economies, exigent steps needs to be taken in order to avoid this catastrophe which may severely affect growth prospects of India in future.

First and foremost the government should make sure that it should pump more liquidity in the system so that the cash flow is maintained and the money cycle goes on. RBI should make sure that sufficient amount of loans at proper rates are available both for the consumers and the producers. Few months before there was marked increase in the interest rates due to rise in inflation but since now the inflation is under control and tamed it give room for further slashing of interest rates. Some public sector in recent past has dropped the rates but still lot has to be done to bring the interest level down further.

The biggest problem today is that investors have lost their confidence about the market and they are apprehensive about any new deal hence it should be responsibility of India Inc. to rebuild their confidence in the market.

Government should invest in new avenues such as renewables, biotechnology etc which would not only generate employment but also fuel growth in future. Government should address the employment problem very seriously as service sector has been adversely affected by this meltdown. Our agriculture sector has grown just at a meager rate of 3-4% every year since last 5 decades. Government should try and make an effort to raise the growth level to about 10-12% every year because how much a dire economic situation may be there, the consumption and demand of basic food grains would never go down. So rather than becoming a manufacturing hub India should look forward at exporting food grains. Not only this, thrust to agriculture would also generate rural employment and hence prosperity and stability.

With projection of growth rate of about 6% percent around for India for the year 2009, it is the prime responsibility of not only the government but we all as a citizen of India should work in association to fight against this catastrophe so as India emerge as one of the super powers in coming decades.