Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
LATEST NEWS UPDATES | Why India Inc. is not taking a Hanuman leap -Pulapre Balakrishnan

Why India Inc. is not taking a Hanuman leap -Pulapre Balakrishnan

Share this article Share this article
published Published on Oct 10, 2022   modified Modified on Oct 10, 2022

-The Hindu

The one lever that the government could have pulled as it watched private investment decline was to step up public investment

In a meeting held with the country’s corporate leaders on September 15, Finance Minister Nirmala Sitharaman drew attention to an important aspect of the economy today. She rightly flagged concerns about sluggish corporate investment, despite the government’s business-friendly stance, including a reduction in the corporate tax. The reduction, effected in 2019, lowered the rate for existing companies to 22% from 30% and for new manufacturing companies to 15% from 25%. However, the corporate investment rate, i.e., investment as a share of the national income, has barely budged. Ms. Sitharaman challenged corporate leaders to invest, asking rhetorically whether, like Hanuman in the Ramayana, they needed to be reminded of their inborn strength. The analogy is mismatched, though. For, while Hanuman was so devoted to Lord Rama that he was ready to risk his life serving him, private firms are driven by profit expectations. Managers are averse to risk, and unlikely to rush to invest based on exhortation from a Minister if they do not anticipate enough profits. Private investment accounts for close to 75% of total capital formation in the economy; its revival therefore is essential for sustained growth of the economy.

Decline of private capital formation

The Narendra Modi government’s first pronouncements in 2014 had conveyed that it desired a shift away from a state-driven model of economic development. This much was apparent in its slogan ‘minimum government’. If this was to be, the private sector would take the lead in driving the economy. Mr. Modi had a reputation as a business-friendly Chief Minister of Gujarat. Upon reaching Delhi, he emphasised that his government would improve the ease of doing business in India. This by itself is a worthy objective, as anyone familiar with the working of the regulatory apparatus in India would agree.

Please click here to read more. 


The Hindu, 10 October, 2022, https://www.thehindu.com/opinion/lead/why-india-inc-is-not-taking-a-hanuman-leap/article65988981.ece?homepage=true


Related Articles

 

Write Comments

Your email address will not be published. Required fields are marked *

*

Video Archives

Archives

share on Facebook
Twitter
RSS
Feedback
Read Later

Contact Form

Please enter security code
      Close