Proposed steps by NITI Ayog to slow economic decline in India

The Indian think-tank, the NITI Ayog has declared that the current economic situation in India is unprecedented and nobody had faced this type of a situation in the past 70 years. The NITI Ayog has also proposed several solutions to sort through the economic mess.
What steps has the NITI Ayog taken?
- The NITI Ayog has recognized the gravity of the economic crisis in front of the country and knows that the entire financial system is under threat.
- The NITI Ayog has declared that the government needs to take certain steps that will eliminate the apprehensions from the private sector and motivate them to enact a greater role in the economy.
- The NITI Ayog believes that the private investments will drive India out of the middle-income trap as government funding is less forthcoming in this regard.
- The NITI Ayog is worried that lending institutions which are currently laden with cash are not willing to lend money to the corporates.
- The rise in NPAs has reduced the ability of banks to perform fresh lending as space is occupied by the shadow banks which have reported a healthy credit growth of 25%.
- However, shadow banks or the non-banking finance companies (NBFCs) can not sustain this high loan growth which has lead to sustained defaults on loan repayment which has triggered a slowdown in the Indian economy.
Other factors
The successive changes in economic works like demonetization, the imposition of the Goods & Services Tax and the Insolvency & Bankruptcy Code have all added to the cash crunch which is now impacting business in the country.
Originally written on
August 22, 2019
and last modified on
June 10, 2025.
Tags: Finance, Indian Economy, Niti Ayog