The corner focus on growth in the next few

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- quarters/article21244427.ece Ans. PRIVATE INVESTMENT Industrial revival is an absolute must for sustained growth in employment and output. It should also be accompanied by an increase in private sector investment, which is still lacklustre. The portion of GDP growth coming from fixed capital formation (which stands for investment activity) declined from 27.5% in the first quarter to 26.4% now. This has to be closely watched, and needs high policy priority. All the improvements in the Ease of Doing Business (EODB) ranking are meaningless unless we see substantial pick-up in private sector investment. More about this later. It is important to focus on the weaker components, which should become policy focus area. As said above, private sector investment is still anaemic. It is constrained by low capacity utilisation, deleveraging of balance sheets (as companies are reducing loan burdens), insolvency resolutions and large influx of imports, especially manufactured goods. Second, consumption spending has started losing steam. Its growth went down a notch from the last two quarters. EXPORTS Finally, among the biggest worries are India’s exports. The world at large is experiencing one of its strongest growth phases. Indeed, the International Monetary Fund has revised its growth projections upwards for most countries. In such a scenario, India’s sluggish exports stick out like a sore thumb. When the world economy does well, India’s exports should be flourishing. The exporting sector’s fortunes are closely linked with the manufacturing sector. Exports create jobs, especially in small and medium enterprises. Oil prices have gone up in the past few months, taking away the fiscal dividend. GST, Real Estate (Regulation and Development) Act, Insolvency Code are all great reforms for the medium to long term. But the next few quarters call for sustaining consumption, inviting private investment, energising agriculture, and giving a big fillip to exports. 15. The Global Hunger Index (GHI) prepared by the International Food Policy Research Institute (IFPRI), shows India’s hunger level in very poor light. Discuss index/article21255142.ece The 2017 GHI score has India ranked 100 out of the 119 countries listed. While a casual reading would create the impression of India being among the worst performers and underachievers in addressing food and nutrition security, closer scrutiny shows that it should not be taken at face value as it is neither appropriate nor representative of hunger prevalent in a country . However, despite improvements, India still faces a problem of undernourishment and poor child health.
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