Large disinvestments could help bridge fiscal shortfall and maintain government spending growth | The Indian Express

Large disinvestments could help bridge fiscal shortfall and maintain government spending growth | The Indian Express

Written by Neelkanth Mishra |Updated: August 30, 2019 10:45:03 am

The writer is co-head of Asia Pacific Strategy and India Strategist for Credit Suisse.

Large disinvestments could help bridge fiscal shortfall and maintain government spending growth

The government needs to take a decisive approach on the financial architecture in India: It needs to take an axe to the system, as a scalpel will no longer suffice.

In a complex economy like India, where hard data is limited, perceptions of the slowdown run at a different pace from ground reality

The economy has slowed. Now that there is a consensus on that, the debate has moved to how severe it is, how long it can last, and where the intervention needs to be. Like a snowball that grows bigger as it rolls on, economic momentum builds in a certain direction till a force (intervention) is applied. The later the response, the stronger the necessary intervention.