Modi government’s key focus has been on self-employment and entrepreneurship as providing jobs to the fast-growing section of new job seekers is difficult, said a BJP spokesperson. The government’s primary focus areas are manufacturing, developing MSME sector, entrepreneurship, self-employment and promotion of ease of doing business, said the BJP’s national spokesperson on economic affairs Gopal Krishna Agarwal at a session organised by Assocham.
At a time when India is facing equity capital shortage, it’s important to attract foreign investments in the economy, he noted. So, the government, during its tenure, also focussed attracting foreign direct investment (FDI) to create capital in the domestic economy, he added.
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Bad loans
The Modi government has worked extensively to resolve the non-performing assets (NPAs) issue and ensured liquidity position improves in the banking sector, he said. The economic reforms such as IBC (Insolvency and Bankruptcy Code), NCLT (National Company Law Tribunal) have helped the situation to improve, Gopal Krishna Agarwal added.
Credit slowdown
Even as credit offtake slowed down during the early years, concerted efforts by the government resulted in credit offtake for financial institutions increasing by 14-15 per cent year-on-year, he said.
Interest rates
Since India currently has high interest rates, it’s important that these get reduced for economy and industry to grow, he said. There is need for structural changes to be brought in the structural component of financial institutions so that the country moves towards low interest rates, the BJP spokesperson said.
Various projects that came to a standstill owing to issues related to land, inter-ministerial complexities among others are being addressed by the PRAGATI (Pro-Active Governance And Timely Implementation) platform launched by the Modi government, he said.