Economics professors say that India is not under recession but, the economic growth has declined and John Maynard Keynes' economic policies would help to overcome the issue.
Professor B S Srikataradhya, a former member of the Tax Reforms Committee, Karnataka, and Professor C K Renukarya, expressed their views during a state-level symposium on "The current Indian Economic Crisis: Need for State Intervention", jointly organised by Maharani's College For Women.
Srikataradhya said, to tackle the slow down of the economy it needs several measures. At present, very little efforts have been made. Non banking financial sectors, production and manufacturing business are in bad shape in terms of economic growth.
He said that the land acquisition process for projects is a big problem and the loss in the land acquisition process must be controlled. In addition, purchasing power in rural India must be strengthened.
Renukarya said, "India is a big country in terms of the geographical area and the country is facing the problems of poverty, education, and unemployment. Unless, we incubate production skills among the citizens, particularly youths, it is not possible to overcome the unemployment problem."
It is a challenge to address the present crisis. Short term as well as long term plans would address the issue. He said that JM Keynes economic policies would work to overcome the problem.
The government must interfere without affecting the private economy. Highlighting demonization, he said that a single mistake had a great impact on the country's economy. The policymakers must think twice before implementing such initiatives, he added.
According to him, Free Trade between countries help in faster growth but, Indian producers are not competitive with other nations due to certain reasons.
