According to a recent report, Narender Modi, the Indian Prime Minister, has announced the country’s biggest privatization in a long history to revive the Indian economy. He is also making new attempts that the shadow banks ring-fence.
The consumption rate in India is slowing down deeply and thus affecting the $2.7 trillion economy of the country. While Modi’s plan is to transform the 2.7 trillion economies into $5 trillion by 2025.
On Wednesday, the Indian authorities made another huge announcement that the government has decided to put up its entire stake for sale in the second-largest state refiner of the country as well as sell the biggest shipping company of the country. A proposal to cut off some companies’ stakes below 51% has also been approved and modified industrial code is also being pushed for by the government. At the same time, a problematic shadow lender was also seized by the central bank of India to prevent further spread of default in the third-largest economy of Asia.
The Indian and Southeast Asian Economics head at Oxford Economics, Singapore, Priyanka Kishore, said that this is Modi making new attempts to establish confidence in India’s economic potential. She further
Moreover, she said that it was crucial for the present government to introduce these measures to bridge the expanding fiscal deficit. The sovereign debt outlook of the country got cut to negative by Moody’s Investors Service this month.
Modi, after being elected as the country’s prime minister for the second consecutive time, has realized his popularity among the majority. He won the elections on the basis of the promise to develop the economy rapidly and thus is now passing reforms to create jobs and unleash growth. India is the third-biggest economy in Asia but only 5% expansion in its economy was recorded April to June while just a year ago, the scale recorded 8% expansion. No expansion has been this low for last six years. Data coming in the next week isn’t any better either.