The Indian economy grew at a rate of 5% in the second quarter, the lowest in nearly six years. In order to stabilize the economy and promote growth, the Indian government has issued stimulus policies twice. After the August trade data was released on the 13th, the Indian government once again introduced the third wave of economic stimulus policies.
India’s “Business Today” reported on the 14th that India’s exports in August was 26.13 billion US dollars, down 6.05%, and exports of major industries such as petroleum, machinery, leather and jewelry fell sharply. To this end, the Indian Ministry of Finance announced on the 14th that it will launch a series of stimulus policies around housing construction and foreign trade development to cope with the current downturn in economic growth.
The Times of India quoted Indian Finance Minister Sitaraman on the 15th as saying that India will set up a special fund of 200 billion rupees (1 rupee or 0.1 yuan) to drive housing construction and sales. In terms of foreign trade development, India will provide tax relief for export products, so the Indian government will reduce its annual fiscal revenue by Rs 500 crore, while India will also relax the lending rules for export priority sectors, which will provide an additional Rs 660-680 billion. Funding to secure export credits and efforts to ensure that exporters have access to low-tax concessions in the multilateral trade agreements. In addition, in order to boost the sales and export of small and medium-sized enterprises, India will also hold large-scale shopping festivals with different themes every year.
Former Indian Prime Minister Manmohan Singh said recently that if the current government does not take measures to resolve the real problems behind the current economic slowdown, “the Indian economy will encounter a long-term growth crisis.” Kumar, the vice chairman of the National Transitional Council of India, also told the media that the current economy in India is not a question of whether to slow down. “It is a question of how serious the slowdown is.”
Weidike, a senior analyst in the venture capital market in New Delhi, told the Global Times that the Bank of India has cut interest rates by four rounds since February this year. The market generally expects to cut interest rates again in October, but monetary policy alone is not enough. Let the economy get out of the quagmire. Although the Indian statistics department claims that the current economic slowdown is mainly affected by cyclical factors such as global trade friction, structural problems in the economic sectors such as agriculture, manufacturing, and export in India, as well as taxation, land, and labor reforms, are difficult to obtain effectively. Advancing is the root cause of the Indian economy’s troubles.
Wei Wei Ke said that half of India’s population is based on “agriculture”, but the low price of agricultural products has made it difficult for farmers to increase their income, which has become an important incentive for India’s domestic demand to weaken. In assessing this round of stimulus policies, Wei Weike said that the government’s introduction of stimulating policies is usually relatively short-lived, and further government observations may require further observation.