ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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India’s Slowdown

Investments in industry have slowed down considerably in the recent years, as has agricultural growth. Falling levels of capacity utilisation, building up of food stocks and the state of liquidity in the economy sufficiently prove that the problem today is the lack of demand. Rural distress, rising inequality and falling real wages are driving down demand. The government’s response to the slowdown has been woefully inadequate. The biggest impediment to policymaking is not the lack of ideas, but the blinkered vision of economics.

Recession and Recovery

H T Parekh Many of the industries hit by recession depend upon Government purchases. In order to give a boost to the economy, such purchases should be made even if they involved resort to additional deficit financing.
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