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Updated: August 30, 2013 01:36 IST

Reduce unnecessary imports

Jayati Ghosh
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Jayathi Ghosh, Economist. File Photo
The Hindu Jayathi Ghosh, Economist. File Photo

The government can no longer go ahead thinking this is business as usual. The current strategy is ad hoc and needs a change. The crisis measures have to be a part of a medium-term strategy. The current crisis must be seen as an opportunity to revive domestic production.

The current account deficit has ballooned partly because court orders have closed Indian mines for iron ore and coal, reducing exports and necessitating imports of those products. Non-essential imports, particularly those imports that have affected employment and livelihood, and gold imports have to be reduced. This is why the food security bill is good as it releases people with incomes for other spending.

If the private sector is not willing to invest, we need to get on with it.

We need an alternative source of demand that creates necessary infrastructure.

(As told to Girija Shivakumar)

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More In: Comment | Opinion

Incredible that such left wing economists still exist, and their
opinions are apparently unchallenged, least of all by the scribe who
listened to and published the tripe.

from:  vijay
Posted on: Aug 31, 2013 at 08:19 IST
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