Samudra Manthan
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- Mar 22, 2015
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Govt. needs to take serious actions to improve liquidity in India.
Monetizing gold is unlike to work out.
Opening 180 crore bank accounts has not raised the required amount of money.
Foreign investments are taking their time to come in and it is not fast enough.
Tourism is again a slow starter.
Under the circumstances, ensure cash in the hands of the middle class might be the way tot go. That and lower interest rates which will bring back a lot of money into the market.
They have just recently legislated gold monetization and we need to give it a time period to work out. The govt is not looking at mopping up all the gold in private households, just a fraction of it. This itself will have far reaching consequences.
Opening 180 million bank accounts was not about raising funds but about getting people into the banking system, financial inclusivity, cutting out leaks in subsidy/funds transfer, and such.
Foreign funds are an added bonus as and when they materialize, even without them we can do perfectly fine.
Mudra bank is an initiative in the right direction helping out budding entrepreneurs.
The govt will do what it must.