Mighty Economic Challenges for Nirmala Sitharaman, the First Female Finance Minister of India
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Published by Neetu Panwar on 01 Jun 2019
Narendra Modi, the Prime Minister of India recently took an oath as the PM on 30th May 2019. He has selected Nirmala Sitharaman as the new finance minister of India. She is the first finance minister of India after Indira Gandhi. The 59-year old Nirmala Sitharaman earlier served as the Member of Rajya Sabha. After becoming the finance minister, there are numerous challenges for her. Check it out below!
- In the current Q4 of financial 2018-19, financial growth is below 6 percent.
- Auto sales have been increased year on year to 3.1 percent in the month of March 2019.
- In order to resolve the imbalance in public investment, the Government needs to find the right resources.
- It is also important to look at rural development and make rural livelihood more effective.
- Private Investment is at a 14-year low. Looking at the graph of Gross Fixed Capital Formation in every financial year, she has to work on the private investments flowing.
- As per the latest survey by the NSSO, there is huge unemployment at a 45-year high.
- As of now, the banking sector has been struggling a lot as the public sector banks are reeling under severe loans. Even the direct tax code has been hanging fire for several years. If this case continues then, Nirmala Sitharaman must increase the amount for welfare schemes. By strengthening the bankruptcy law, we can witness rapid resolution.
- The current Finance Minister must and should solve all these big challenges without applying any kind of physical deficits.
- There are some weak points in exports that must be corrected. Otherwise, India might have to face some crude price shocks.
- Due to diminished growth and fewer prices, there is immense stress on rural areas.
As per the report from some sources, she has to work on enhancing private investment, private consumption, public expenditure, and exports. All these are considered the biggest challenges before Nirmala Sitharaman that even includes job growth.