The economic growth is bad hit by a decline. Hundreds of start-ups and entrepreneurs in the service and manufacturing sectors are waiting for the central government to take steps to reboot the economy.
According to industry experts, the government will have to ensure stepped up spending, particularly in infrastructure, healthcare, connectivity, education sectors to revive the growth.
S.Vishwanathan, industry analysts told news agency IANS:
“As the custodian of the country, the government has to initiate measures to revive the economy and spur growth. If it responds to the needs of the manufacturing and service sectors the account for over 80 percent of the country’s GDP, it will change the sentiment for good and mood for spending.”
He also said that the sudden demonetisation back in November 2016 and introduction of GST regime in 2017 had a dramatic effect on the economy. It affected the spending, investments, fund-raising and job creation in a negative way.
Vishwanathan believes that economic growth got affected because the shadow or parallel economy that was igniting the GDP growth over the years was nipped. This resulted in the removal of unaccounted or black money and prevention of tax evasion by the dodgers.
“The government has to focus more on the economy to fix the problems holding back growth, spending, investments, savings and job creation than doling out freebies.”
He also added:
“Though the government may claim that the economic fundamentals are strong and over a billion people spend for their livelihood, education, healthcare and travel, unemployment, rural distress, negative sentiment, lack of capital and fear of being caught by the authorities is preventing faster growth that will create market for entrepreneurs and start-ups to consolidate and grow.”
It is a fact that the state-run enterprises and India Inc. sustain the average or the Hindu growth rate, but they don’t drive the economy on the fast lane in comparison to the other segments. Including consumer goods, retail, hospitality, housing, travel, tourism, healthcare, and entertainment do at the bottom of the pyramid, despite many of them being in the unorganized sector.
As told by Ravi Gururaj to IANS:
“Entrepreneurship grew well during the first term of the NDA government when hundreds of start-ups in the services sectors sprung up to innovate and create a plethora of software and hardware products and services for the old and new economy.