Weakening Demand

Although the business environment has started showing improvement through the different phases of the economic activitiesundertaken by the government but the biggest worry for India is the weakening of the consumer demand in the country.

There is a serious discontentment against some of the credit facilities which usually bother the business and industry. Around 63 per cent of the people of the country are not satisfied with the credit facilities by banks. Banks are not proactive and helpful to clear proposals which have even led the  genuine businesses fallen into the denial of the  credit lines by the lenders. There is a support even for rescheduled accounts which have already been classified as Non Profitable Assets.

Recommendations to drive demand are as follows-

• Additional direct cash transfers.

• Temporary reduction in GST rates.

• Enhanced government procurement.

• Part funding of salaries to support jobs, etc. 

• The central government must come out with a uniform policy for the entry of tourists across different states as the movement of people will fuel growth of the domestic/regional economies.

• Special packages for the worst impacted sectors of the economy like hospitality, tourism, retail, healthcare, real estate, and aviation.