How important are consistent governmental policies in promoting economic growth?
As we welcome the year 2024, it’s important to recognise its unique significance in the global political landscape. This year marks a pivotal moment, as 50 nations, including key players like the United States, United Kingdom, Russia, South Africa, and India, embark on the critical process of electing new governments. The democratic exercise of elections not only embodies the foundational principles of democracy but also exerts a profound influence on the corporate sector. The stability and predictability offered by consistent governmental policies are indispensable for fostering long-term economic growth.
A closer examination of the current government's initiatives reveals several structural reforms that have yielded substantial economic benefits.
A paramount achievement has been the fortification of the Indian banking system. The considerable reduction in gross Non-Performing Assets (NPAs) from 9.1% as of March 2019 to 3.2% as of September 2023 exemplifies this progress. This improvement stems from a strategic infusion of equity and a marked decrease in the accumulation of new bad loans. Credit for this turnaround is largely attributable to the implementation of robust bankruptcy laws under the Insolvency and Bankruptcy Code (IBC) and the vigilant oversight of the Reserve Bank of India (RBI).
Moreover, the eradication of crony capitalism played a pivotal role in this transformation. Looking ahead, preserving this independence, crucial for maintaining low NPAs and supporting the credit needs of the Indian corporate sector, is of utmost importance.
Another cornerstone of the government's strategy has been its unwavering commitment to infrastructure development. This focus, particularly on roads and renewable energy,
Read more on livemint.com
