GS 3: Economy

Why in News?

The Economic Advisory Council to the Prime Minister (EAC-PM) had a meeting and took stock of the state of the economy.

Challenges Identified and to be addressed:

Amongst challenges that need to be addressed are reforms in the :

• Agricultural sector
• The MSME sector
• Skill development
• Credit issues
• Digital payments and the banking sector reforms.

Highlights:

• The Council endorsed that the macro-economic fundamentals of the economy are sound, but challenged remain, several of which are structural in nature. While the prospects for world economic growth does not look very promising, particularly in the advanced economics, there is sufficient amount of growth momentum in emerging market economies.
• India is not insulted from global developments.
• Nevertheless, India’s growth is expected to be in the 7-7.5% range in the next few years; one of the fastest in the world. However, with reforms designed to address the structural problems, growth rates can easily be enhanced by at least 1%.