A finance ministry report says that reforms undertaken during the pandemic will help sustain long-term growth
Bengaluru: The Union government is doing its best to extricate the country out of the mess, all thanks to the coronavirus pandemic.
The government has taken several measures, including structural reforms. As quoted by Economic Times, a report by finance ministry has said. "The enabling policy environment and initiatives taken by all stakeholders to seize the available opportunities will actualise the growth potential of the Indian economy.”
Noting that the sustained spread of the virus poses a downside risk to short-term and medium-term growth rate, it said the government has taken various important structural reforms, encompassing various sectors, to combat these risks.
Relying on the data for the 14-day period from September 17 to 30, it added that it suggests that India may have crossed the peak of COVID-19 caseload.
It might be noted that during this period, the seven-day moving average of daily positive cases steadily declined from about 93,000 to 83,000, while the seven-day moving average of daily tests rose from about 1,15,000 to 1,24,000, it said.
"The pandemic however is far from over. Yet, the declining positivity rate at all-India level sets the stage to further push up the frontiers of economic recovery," it added.
According to the report, major structural reforms launched by the government in agriculture markets, labour laws and definition of MSMEs provide unparalleled opportunity for the resilient MSME sector to grow and prosper now and thereby, contribute to job creation in the primary and secondary sectors.
The historic labour reforms, discussed for three decades after the conditionality in the 1991 loan from International Monetary Fund (IMF) but never implemented thus far, will benefit MSMEs to increase employment, enhance labour productivity and thereby wages in MSMEs, it said.
Such moves by the government will go a long way in arresting the slide and ameliorating the economic consequences.
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Last Updated Oct 5, 2020, 12:52 PM IST