New Delhi: In 2018, the government is likely to face tough choices. The BJP is hoping to win eight states which are going for polls in 2018.
According to an article published in Economic Times, in this context, Modi government has to take some tough decisions to boost investment environment in the country and improve the deteriorating agricultural situation.
Firstly, the BJP government at the centre must give priority to the agriculture to boost productivity and realize its promise of doubling the farmer’s income. Now, will the farmers get their loans waived by the government as part of its reforms or will be happy with government’s targeted schemes on supplying cooking gas and electricity?
The clue to this question will be reflected in February’s budget.
Secondly, the investment potential of private sector is sluggish in nature, adding to this is the reluctance of banks lending. It is imperative that insolvency problem should be cleared as soon as possible.
In terms of ramping up public expenditure, hard choices have to be made regarding fiscal discipline and giving a push to the public expenditure. As prices are still high, RBI’s focus on inflation and growth will give the answer in the first couple of months in 2018.
Thirdly, Indian government has tried to be nice with Pakistan and also showed tough attitude towards it. But nothing seems to send a message to reluctant Pakistan. Modi government should decide whether its approach must be more cross border strikes, even bigger military responses or another offer to talk?
Fourthly, unpredictability regarding high prices of cride oil will have major impact on major oil importer like India. India needs to keep an eye on prices of Brent Crude Oil to see how 2018 will turn for it.