Businesses need stable and consistent policies
Raghav Behl, founder of TV18 and Quint has diagnosed that the current slowdown is unlike previous ones. He blames the policies of the current government. He believes that India can come out of the slowdown.
Raghav offers five steps for the remedy. One, trusting market forces will help businesses. Government should do away with policies such as Anti Profiteering Authority and new e-commerce rules. Two, recapitalising and not destroying assets. Government could have saved the assets worth INR 20 lakh crore such as ILFS, Jet Airways and DHFL. Three, uncriminalising businesses. Successful businesses are treated as common criminals for normal business failures such as founders of NSE and Carnation. Four, correcting policy mistakes. Government has gone quiet on cases such as AGR fees for telcos and non telcos. Five, killing tax terrorism. Agencies have power to harass businesses and businessmen, which stops them from investing.
P Chidambram, former Finance Minister says, “ Businesses become to deleverage, shed debt, shed employees. Look at Oyo. Software has got rid of several lakhs people. Fifteen lakh jobs will be lost this year.”
As per economist Vivek Kaul the slow down leads to low tax collection, slower GDP growth, all time low investment and lower private consumption. Without reforms the economy will not recover.