1. Economix.
Team No : COG12/ECO/013
Names :Akhil Prabhakar
Arpit Jain
Nikhil Varshney
College :IIT Roorkee

2. Global economies are currently on their path of
recovery, driven by the Asian powerhouses ,
from the recent financial crisis of 2008
Global Economy Today
The Euro debt crisis:-
•The ongoing debt crisis has intensified concerns
•The primary deficit before interest payments for Greece rose to touch
€24.7bn (10.6% of GDP) in 2009.
•Rising debt levels, trade imbalances, monetary policy inflexibility and
loss of confidence have led to shrinkage of European economies like
Greece , Ireland , Portugal.
•This has severely affected other EU members.
There is an increase in loss of investor confidence
and volatility.

3. Things to watch out for!

4. Proposed reforms to achieve sustainable growth
• Looking at the current scenario, reforms need to be made to sustain a good GDP
as well as to keep our economy immune to economic turmoil around the world.
• We have tried to cover some major issues as discussed below :-

5. Fuelling the Domestic Consumption
• Few suggested reforms in the following areas may
fuel the domestic consumption and amplify the
domestic demand.
*Key point here is that to keep inflation in control
from increasing demand supply would be required
to multifold so that demand-supply gap is reduced.
1. Banking->Debt recovery tribunal revamp
->Interest liberalization
->Reforms in the Micro Financing
2. Agriculture: ->Short term Credit Scheme (April-June)
for farmers taking into consideration the
Revenue collection period of the government
->Manpower intensive Allied Agriculture
needs promotion
->Direct Subsidy Transfer
->Farm mechanisation, agricultural markets
and cold chains
3. Infrastructure: Enhancing Foreign & Private
Investment

6. Removing structural bottlenecks
• Structural bottlenecks in Banking-Debt recovery tribunal
revamp
• Assets locked up in Central Public Sector Units that have
turned economically unviable, and auction must be done
• Restructuring regulatory authorities to function efficiently
like government can save the country over 75,000 Crore
annually by bringing the department of fertilisers under the
ministry of agriculture instead of being kept under the
ministry of chemicals, petrochemicals and fertilisers
• IT department must increase workforce to suffice
investigation requirements
Other reforms:
 Amending the definition under Sec 80-1A to include rural
initiatives
 GST must be enforced through political consensus
 Minimum alternate tax should be reduced.

7. Greater focus on increasing (IIP) Index of Industrial Production, greater
consideration for electricity (for Driving Economic activities) and Mining (for
augmenting employment)
The enormous amount of subsidies and other programs like Food security act ,
MNREGA , Sarva Shiksha Abhiyan , Mid – day meal lead to huge fiscal deficit.
Revising the subsidies and proper implementation of the above schemes can
improve our fiscal position.
Some concerned reforms may be:
 Land leasing should be legalized
 Integration of water harvesting and its management with MNREGA
 Coal supply must be rationalized and fast-tracked along with distribution reforms
 Promoting foreign investment in infrastructure
 Tax deduction on in-house R&D across all industries
 Quality education to be stressed upon
Revamping Policy Framework

8. Institutional Reforms
Institutional reforms in Financial Institutions includes
integrated working of LIC, SBI & IIFCL in the following areas:
 Increasing debt cap against investments
 Housing loan schemes
 Allied services
 Asset sharing

9. Regulating International Financial and Trade channels
• Tackling the Black Money Retrieval and Tax Avoidance Issues
• Common Tax havens MUST be identified and weaknesses in
the Indian Tax Laws must be ratified, without any delays
• Trade relations with a neighboring countries mainly, Pakistan
(after MFN status) and Bangladesh need to be strengthened
• Expansion of Indian companies like TATA Nano to
International Markets (Singapore) is a major event
• A restoration process of releasing the monetary tightening
and providing an impetus to money inflow over a period of
time needs to be chalked out, so that the dynamicity of the
Indian Economic is maintained

10. Goods and Service Tax (GST)

11. Our Bet for the Economy
The Immediate Step???
A major message restoring investor confidence needs to be sent by
enforcing an impressive and impactful Anti-Corruption Law