Cabinet Committee to Address Economic Crisis
The government has decided to set up to two new committees of the Cabinet viz. one on Investment and Growth and the other on Employment and Skill Development.
- The slowing down of the economy has been a major concern. The GDP growth rate dropped below the original estimate of 7 per cent to 6.8 per cent during the last financial year. Growth rates which were sequentially lower every quarter and the growth just 5.8 per cent in the last quarter. This was the lowest in 20 quarters.
- Private investment has remained depressed for the past many years due to poor credit offtake because of the huge bad loans with banks.
- The liquidity crisis in NBFCs has further exacerbated the scenario with consumption expenditure which is a major component of India s growth story slowing down.
- The Periodic Labour Force Study has put the unemployment rates at 6.1 per cent which is the highest in the last four decades.
Economic growth and jobs are vital parameters to meet the aspirations of the youth. The two new committees with the specific mandate will ensure ministries are on the same page together with expediting decision-making to boost the economy.
Category: Economy & Banking Current Affairs
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