After problems in the economy were identified and after reports revealed that economic slowdown can affect the government’s prospects in the crucial 2019 general elections, an Economic Advisory Council (EAC) was constituted by the government. The EAC was formed to report directly to Prime Minister Narendra Modi on matters of macro-economic issues. After studying the problems being faced by the economy, the EAC today announced a 10 points agenda to boost the economy. The focus is to win back the title of the fastest growing economy in the world. India had this title in 2016, but after the slowdown in the last quarter, it has lost the title. However, India has the potential to win back the title. Even the International Monetary Fund (IMF) has said in its recent report that India is on its way to achieve 8 percent GDP growth, even though it may take a few years.
The EAC has identified various areas in the economy that need to be improved. These include components like employment opportunities, fiscal health, public expenditure, agriculture reforms, social reforms, monetary policy, etc. The EAC has also suggested that a new system needs to be created that can track key economic parameters on an ongoing basis. This will allow the government to identity problems at an early stage and fix them before they cause any significant damage. The EAC also recommended that the current fiscal consolidation roadmap should be continued. After providing its recommendations on boosting the economy, the EAC will now focus on the Union Budget, which will be presented in 2018.