Quick Overview

The present slowdown in the Indian economy need to be understood in relation to a sequence of issues during the previous years. In a crisis situation, the policy focus needs to be on business confidence. The logic and historical experience of economic slowdown visualizes a gap in the confidence levels between the MSMEs and the corporate sector. This gap, conceptually, cancels out during an adjustment period. While, of late, this logic has not worked very well recently due to some specific factors, there is need for a corrective mechanism. The role of private sector is undoubtedly crucial. The Union Budget 2019 has come up with several proposals for providing relief to this sector. But this is not enough to ease the so- called ‘millennium dualism’. There is a puzzle relating to employment promotion and public policy support, which calls for a discretionary approach to Public policy and strategy. Here lies the case for a ‘Tortoise and Hare ‘strategy.