India's Trade Performance in August 2024 and its implications for Indian Economy

Courtesy: www.tradingeconomics.com

Merchandise and Services Exports in August 2024

India's total exports, encompassing both merchandise and services, reached USD 65.40 billion in August 2024. This represents a decline of 2.38% compared to the same month in 2023. While merchandise exports have shown consistent growth over the past few months, the slowdown in services exports, particularly in the IT sector, has contributed to the overall negative growth. Factors contributing to this decline include global economic uncertainty, rising interest rates, and weakening demand in key export markets.

The decline in services exports is particularly concerning, as this sector has been a key driver of India's economic growth in recent years. The IT sector, which accounts for a significant portion of services exports, has been hit hard by the slowdown in global demand. Companies in the IT sector have been forced to lay off workers and cut back on investments, as businesses in developed economies reduce their technology spending.

The Indian government is taking steps to address the slowdown in exports, including providing incentives to exporters and promoting trade with emerging markets. However, it is likely that the global economic environment will remain challenging in the coming months, and India's exporters will need to be prepared to navigate these challenges.

Merchandise and Services Imports in August 2024

India's total imports, including merchandise and services, amounted to USD 80.06 billion in August 2024. This marks a positive growth of 3.45% compared to the same month in 2023. The surge in imports is primarily driven by increased demand for petroleum products, gold, and other raw materials.

The rise in petroleum product imports reflects a strong demand from domestic industries and consumers, coupled with global oil prices hovering at elevated levels. The increase in gold imports reflects both investment demand and a surge in consumer spending on jewelry and other gold-related products. This trend indicates a rise in consumer confidence and discretionary spending in the Indian economy.

The growth in imports of other raw materials signifies an expansion in manufacturing activity, with businesses stocking up on essential inputs to support their production processes. This points towards a robust demand for manufactured goods, both domestically and for exports. The overall increase in imports, driven by these factors, indicates a healthy economic environment with positive growth prospects

Negative Growth in Exports in FY25 -forecast

Global Economic Uncertainty

The global economic outlook remains uncertain, with ongoing geopolitical tensions and inflation impacting consumer sentiment and demand for Indian goods and services.

Weakening Demand in Key Export Markets

Major export markets, including the United States and Europe, are grappling with their own economic challenges, leading to a slowdown in demand for Indian products.

Interest Rates

The global see-saw in interest rates is impacting business investment and economic activity, creating headwinds for export growth.

Decline in Services Exports

The slowdown in the IT sector, primarily due to global tech layoffs and reduced client spending, has contributed significantly to the decline in services exports.

Scenario for Next 7 Months of Fiscal Year 2025

Q2 FY25

The next seven months (Q2 FY25) are expected to see continued growth in India's imports, driven by ongoing infrastructure development and industrial activity. The demand for raw materials, particularly crude oil, will likely remain elevated. However, exports may remain subdued due to global economic headwinds and a potential slowdown in global demand.FED interest rate cut expected to sustain demand which is sagging.

Q3 FY25

As the global economic environment improves and inflation eases, export growth is anticipated to gradually recover in Q3 FY25. The government's focus on promoting domestic manufacturing and boosting exports could lead to increased competitiveness and export opportunities. Nevertheless, the overall trade deficit may remain elevated due to persistent import growth.With FED interest rate cuts, demand revival may start kicking in and private investment capex may see real green shoots.

Q4 FY25

By Q4 FY25, the Indian economy is expected to be on a stronger footing, with improved consumer confidence and increased business activity. The government's initiatives aimed at improving the ease of doing business and fostering export competitiveness are anticipated to further contribute to export growth. This, combined with a potential moderation in import growth, could help narrow the trade deficit.FED rate cuts should crowd-in private investments.

India's Current Account to GDP ratio at less than (-)2% is still within manageable limits and will remain so atleast in the short term upto 2027.

This is a big positive for India as India is striving hard to contain its Oil imports dollar impact through various alternatives including increase of Ethanol content upto 20% in its Petrol and Diesel usage by FY26.

India's current Economic Indicators in Sep2024

 

India's Economic Indicators: A Comprehensive Analysis

courtesy: Trading Economics-website

July IIP at 4.8%

India's Industrial Production Index (IIP) for July 2023 registered a growth of 4.8%, signaling a moderate recovery in industrial activity. This growth is a positive sign for the Indian economy, indicating a revival in manufacturing and mining sectors. However, it's crucial to note that this growth is driven primarily by the base effect, comparing it with the low production levels of July 2022 due to the pandemic-induced disruptions. Despite the positive growth, concerns remain regarding the sustainability of this growth in the coming months, particularly considering the global economic uncertainties.

August CPI Below 4% at 3.65%

India's Consumer Price Index (CPI) for August 2023 came in at 3.65%, marking a significant drop below the 4% mark. This decline is attributed to easing food inflation and the government's ongoing efforts to control prices of essential commodities. The lower CPI indicates a moderation in inflation, providing some relief to consumers and potentially boosting consumer demand. However, it's important to monitor the potential impact of global commodity price fluctuations on domestic inflation in the coming months.

Manufacturing PMI at 57.5 in August

The Manufacturing Purchasing Managers' Index (PMI) for August 2023 stood at 57.5, indicating a strong expansion in the manufacturing sector. This reflects robust demand and production levels, driven by factors such as improved consumer confidence and government initiatives promoting domestic manufacturing. The PMI reading above 50 signifies expansion, while a reading below 50 indicates contraction. This strong performance is a positive indicator of the Indian economy's resilience and growth potential.

Services PMI at 60.9 in August

India's Services PMI for August 2023 reached 60.9, indicating a robust expansion in the services sector. This reflects strong growth in new business, employment, and overall activity. The services sector plays a significant role in the Indian economy, and its strong performance is a positive sign for overall economic growth. The continued growth in the services sector suggests that the Indian economy is on a path of recovery and expansion.

Analyzing the Economic Trends

The recent economic indicators paint a mixed picture of India's economic performance. While the IIP, CPI, and PMIs suggest a positive trend in industrial activity, consumer spending, and manufacturing and services sectors, it's important to consider the underlying factors contributing to these trends. The strong growth in manufacturing and services PMIs could be attributed to pent-up demand and government initiatives. However, it's crucial to monitor global economic uncertainties and potential inflationary pressures that could impact the sustainability of these trends.

Positive Trends

• IIP growth suggests industrial recovery
• CPI below 4% indicates easing inflation, which may entail Rate reduction by RBI
• High Manufacturing and Services PMIs reflect strong sector expansion

Challenges and Uncertainties

• Global economic uncertainties &recession, which may affect Exports out of India
• Potential for inflationary pressures
• Sustainability of growth in the long term
• Monsoon behaviour which may impact Agri Economy and Rural consumption

• Projecting GDP for FY24-25

  Based on the current economic trends and considering factors such as government policies, global economic conditions, and domestic demand, Private Consumption, Agri production,  the projected GDP growth for FY24-25 is expected to be in the range of 6.5% to 7.5%. This projection is based on the continued expansion in the manufacturing and services sectors, coupled with improved consumer confidence and government initiatives to boost economic activity. However, potential challenges such as global inflation, geopolitical tensions, and supply chain disruptions could impact the projected growth.

  Scenario	Projected GDP Growth
  Base Case	6.8% - 7.2%
  Upside Scenario	7.5% - 8.0%
  Downside Scenario	6.0% - 6.5%

  India's economy continues to show signs of recovery and growth, driven by strong performance in key sectors. However, it's crucial to be mindful of potential challenges and uncertainties mentioned above. While the recent economic indicators are positive, it's important to monitor global economic trends and implement appropriate measures to mitigate potential risks. To further enhance growth prospects, the government should focus on long-term structural reforms, promoting innovation and entrepreneurship, and enhancing infrastructure development.

 

India's Economic Potential: Unveiling the Growth Story

Explore the factors driving India's economic growth and the potential for future prosperity.

India's Productivity Growth: RBI KLEMS Data

Capital Deepening

Increased investment in physical capital, such as machinery and infrastructure, has significantly contributed to productivity gains. The Reserve Bank of India's KLEMS database has revealed a substantial increase in capital stock per worker, indicating a trend of capital deepening. This has led to greater access to advanced machinery, improved infrastructure, and a more productive workforce.

Technological Advancement

Adoption of new technologies, including digitalization and automation, has enhanced efficiency and productivity across industries. The RBI KLEMS data shows a clear correlation between technological advancements and productivity growth in India. This includes the adoption of information and communication technologies (ICT), automation in manufacturing and services, and the development of new business models that leverage technology. These advancements have led to increased efficiency, reduced costs, and improved product quality, contributing significantly to productivity gains.

Human Capital Development

Investments in education and skill development have led to a more skilled workforce, boosting productivity and innovation. The RBI KLEMS data highlights the impact of human capital development on productivity. The database shows a rise in the average years of schooling and a growing number of skilled workers, indicating a significant investment in human capital. This has led to a more productive workforce, capable of utilizing advanced technologies and contributing to innovation, thereby driving productivity growth.

Improved Infrastructure

Significant investments in transportation, energy, and communication infrastructure have facilitated greater connectivity and economic activity. The RBI KLEMS data reveals a positive correlation between infrastructure development and productivity growth. Improved transportation networks, expanded energy capacity, and enhanced communication infrastructure have streamlined logistics, reduced transportation costs, and enabled businesses to operate more efficiently. This has not only boosted productivity but also created opportunities for new businesses and industries to thrive. (courtesy:RBI KLEMS data)

(TFP VA= Total Factor Productivity Value Added- courtesy RBI KLEMS Data)

Demographic Dividend: India's Youth Population

Growing Workforce

India's large youth population presents a significant opportunity for economic growth, as it translates to a larger and potentially more productive workforce. This demographic shift, characterized by a high proportion of working-age individuals, can lead to increased labor supply, higher productivity levels, and a boost in economic output. For example, the Indian tech sector has benefited significantly from the availability of skilled and tech-savvy young professionals, contributing to India's emergence as a global technology hub.

Increased Consumer Demand

A larger young population contributes to higher consumer spending, boosting domestic demand and stimulating economic growth. Young adults are often more inclined to spend on goods and services, particularly those related to technology, entertainment, and leisure. This increased consumer demand can create new opportunities for businesses and drive economic expansion across various sectors.

Innovation and Entrepreneurship

Youth are often at the forefront of innovation and entrepreneurship, driving economic dynamism and creating new opportunities. With their tech-savviness, access to information, and willingness to take risks, young Indians are increasingly establishing startups and driving technological advancements in fields like mobile payments, e-commerce, and renewable energy. This entrepreneurial spirit has fostered a vibrant startup ecosystem in India, creating new jobs and contributing to economic growth.

Projected GDP Growth in the Next 10 Years

Economic Reforms

Continued structural reforms, such as improvements in governance, ease of doing business, and infrastructure development, are expected to contribute to sustained growth.

Digitalization and Technology

Adoption of digital technologies and advancements in artificial intelligence and automation are anticipated to drive productivity gains and economic growth.

Global Economic Outlook

Positive global economic conditions and growing demand for Indian goods and services are expected to contribute to sustained growth.

Domestic Consumption

Robust domestic consumption fueled by a growing middle class and rising disposable incomes is a key driver of economic growth.

Several factors are expected to contribute to India's projected GDP growth over the next 10 years. These include continued structural reforms, the adoption of digital technologies, a positive global economic outlook, and robust domestic consumption. India's strong economic fundamentals and the government's commitment to economic reforms are expected to create a favorable environment for sustained growth. The government's focus on infrastructure development, ease of doing business, and skill development will further enhance India's competitiveness and attract investments. These reforms are expected to unlock the country's economic potential and create new opportunities for growth.

Furthermore, India's commitment to digitalization and technology is expected to drive productivity gains and economic growth. The government's initiatives to promote digital infrastructure and encourage innovation are creating a vibrant tech ecosystem in India. The adoption of artificial intelligence, automation, and other emerging technologies is expected to enhance efficiency, productivity, and competitiveness across various sectors. India's tech-savvy workforce is well-positioned to leverage these technological advancements and drive economic growth.

The global economic outlook is also expected to support India's growth trajectory. With growing global demand for Indian goods and services, India is poised to benefit from increased exports and foreign investments. The country's strategic location and its growing middle class make it an attractive destination for global businesses. India's participation in global trade agreements and its commitment to multilateralism will further strengthen its position in the global economy.

India's domestic consumption is a key driver of economic growth. The country's large population, a growing middle class, and rising disposable incomes are fueling domestic demand. This increased consumer spending is creating opportunities across various sectors, including retail, tourism, and hospitality. India's government initiatives to boost rural incomes and promote financial inclusion are further stimulating domestic demand and driving economic growth.

Factors Influencing Productivity Growth

Productivity growth is a crucial driver of economic development, and India is no exception. Several factors play a significant role in enhancing productivity and propelling economic growth. These factors encompass investment in infrastructure, education and skill development, technological advancements, and conducive government policies.

Investment in infrastructure is a cornerstone for productivity growth. Improved connectivity, such as efficient transportation networks, reliable power supply, and robust communication infrastructure, facilitates the smooth flow of goods, services, and information, thereby enhancing productivity. Well-developed infrastructure not only reduces transportation costs but also enables businesses to operate more efficiently, leading to improved productivity and competitiveness.

Education and skill development are equally crucial for boosting productivity. A skilled workforce is essential for leveraging technological advancements, adapting to changing market demands, and driving innovation. Investing in education and training programs equips individuals with the necessary skills and knowledge to contribute effectively to the economy. An educated and skilled workforce is more adaptable, innovative, and productive, leading to higher overall economic output.

Technological advancements have a transformative impact on productivity. Automation, artificial intelligence, and digital technologies are revolutionizing industries by streamlining processes, increasing efficiency, and reducing costs. The adoption of these technologies enables businesses to optimize operations, reduce waste, and enhance productivity. Technological innovation also drives the creation of new products and services, leading to economic growth and job creation.

Conducive government policies are vital for fostering a favorable environment for productivity growth. Policies that promote investment, innovation, and business activity, such as tax incentives, simplified regulations, and streamlined approvals, encourage businesses to invest and expand operations, leading to increased productivity and economic growth. Government initiatives aimed at fostering entrepreneurship and supporting small and medium enterprises (SMEs) can also play a significant role in driving productivity and job creation.

Factor	Impact
1)Investment in Infrastructure	Improved connectivity and access to resources
2)Education and Skill Development	Increased human capital and productivity
3)Technological Advancements	Automation and process optimization
4)Government Policies	Promoting investment, innovation, and business activity

Strategies to Maximize the Demographic Dividend

Investing in quality education and training programs to equip the youth with skills relevant to the future job market is crucial for maximizing the demographic dividend. This means providing access to affordable and high-quality education at all levels, from primary to tertiary, and ensuring that the curriculum is aligned with the evolving needs of the job market. A well-educated and skilled workforce is more adaptable, innovative, and productive, leading to higher overall economic output.

Creating an enabling environment for entrepreneurship is another critical strategy. This involves fostering innovation, supporting startups, and providing access to finance and mentorship. Entrepreneurship creates new jobs and drives economic growth, allowing the youth to contribute to the economy by leveraging their creativity and entrepreneurial spirit.

Promoting inclusive economic growth is essential for ensuring that all segments of the population benefit from economic prosperity. This involves addressing income inequality, providing equitable access to opportunities and resources, and ensuring that social safety nets are in place to support those who are most vulnerable. By promoting inclusive growth, we can ensure that the demographic dividend benefits all members of society, fostering a more equitable and sustainable future.

Investing in social and infrastructure development is also crucial for maximizing the demographic dividend. This includes investing in healthcare, housing, sanitation, and other essential infrastructure to create a conducive environment for the youth to thrive. A robust infrastructure enables economic activity, facilitates access to services, and improves the quality of life, contributing to the overall well-being of the population.

Education and Skill Development

Investing in quality education and training programs to equip the youth with skills relevant to the future job market.

Entrepreneurship Promotion

Creating an enabling environment for entrepreneurship, fostering innovation, and supporting startups to generate employment opportunities.

Inclusive Economic Growth

Promoting equitable access to opportunities, resources, and services to ensure that all segments of the population benefit from economic growth.

Social and Infrastructure Development

Investing in healthcare, housing, sanitation, and other essential infrastructure to create a conducive environment for the youth to thrive.

Impact of Technological Advancements on Productivity

Automation

Automation and robotics are transforming industries by automating repetitive tasks, improving accuracy, and reducing labor costs. From manufacturing and logistics to customer service and data entry, automation is freeing up human workers to focus on more complex and creative tasks. This shift is leading to increased productivity, as machines can perform tasks faster, more efficiently, and with greater precision than humans.

Digitalization

Digitalization is another key driver of productivity growth. Digital technologies, such as cloud computing, big data analytics, and the internet of things (IoT), are enabling businesses to connect with customers, manage operations, and make informed decisions more efficiently. By leveraging data analytics, companies can gain insights into customer behavior, optimize supply chains, and identify areas for improvement. This data-driven approach is leading to more efficient processes, better resource allocation, and increased productivity.

E-commerce and Online Platforms

The rise of e-commerce and online platforms has revolutionized the way businesses operate and interact with consumers. Online marketplaces have created new opportunities for businesses to reach wider audiences, expand their customer base, and operate more efficiently. This has led to increased productivity, as businesses can now access global markets, streamline transactions, and offer 24/7 service to customers. Furthermore, online platforms are enabling businesses to gather real-time data on customer preferences, enabling them to tailor products and services to meet specific needs, further enhancing productivity.

Artificial Intelligence

AI is rapidly emerging as a powerful tool for boosting productivity across industries. AI-powered solutions are being used to analyze data, automate tasks, personalize customer experiences, and optimize operations. AI algorithms can analyze vast amounts of data, identifying patterns and trends that humans may miss. This allows businesses to make better decisions, improve efficiency, and enhance productivity. For example, AI-powered chatbots can handle customer queries and provide instant support, while AI-driven predictive maintenance systems can prevent equipment failures and optimize production processes.

Conclusion and Key Takeaways

Productivity Growth

India's productivity growth is driven by factors such as capital deepening, technological advancements, and human capital development. It has a significant influence on economic growth.

Further enhancing productivity requires addressing challenges such as infrastructure bottlenecks, labor market rigidities, and regulatory hurdles. Policies that focus on improving education and training, fostering innovation, and promoting investment can contribute to sustained productivity growth.

Demographic Dividend

India's young population presents a significant opportunity for economic growth. However, it requires strategic investments in education, skills, and infrastructure to maximize this demographic dividend.

By creating an enabling environment for job creation, entrepreneurship, and skill development, India can harness the potential of its young workforce and foster inclusive growth. Investing in healthcare, education, and social protection programs are essential to fully realize the demographic dividend.

Technology's Role

Technological advancements are key to enhancing productivity and driving innovation in various sectors. This could include robotics and automation, digitalization, e-commerce, and AI.

India needs to leverage these technologies effectively, promote digital literacy, and invest in research and development to stay competitive in the global economy. Embracing digital transformation and adopting advanced technologies can accelerate productivity gains and fuel economic growth.

India has to necessarily tread this path of Productivity, Innovation and High Tech manufacturing to become Middle Income Economy fast and avoid falling into Middle Income Trap

பிறப்பொக்கும் .. கைகள் !

 "பிறப்பொக்கும் எல்லா உயிர்க்கும் சிறப்பொவ்வா 

செய்தொழில் வேற்றுமையான் "

என்ற குறளுக்கு முழு அர்த்தம் நம் எல்லாருக்கும் தெரியும். 

அப்போ செய்தொழிலுக்கு ஏற்ப மேல் ,கீழ் என்ற வேற்றுமை 

ஏற்புடையதா ? என்ற கேள்வி தொக்கி நிற்கிறது . 

இதை ஒரு சிறிய உதாரணத்தினால் நான் புரிந்து கொண்டேன். நமக்கு இரு 

கைகள் இருக்கின்றன . வலது கை , இடது கை -இரண்டுமே ஒன்றை ஒன்று ஒக்கும் . ஒன்று  இல்லாமல் மற்றொன்று  இயங்கும் போது நம்முடைய முழு சக்தியை நம்மால் உபயோகிக்க முடியாது.ஆயினும் வலது கை செய்யும் செயல்கள் எல்லாவற்றையும் இடது கையினால் நாம் செய்வதில்லை. 

வலது கையினால் செய்வதை மேலானதாக நாம் கருதுகிறோம் இதுதான் 

"செய்தொழில் வேற்றுமையான் " என்றார் பொய்யாமொழிப்புலவர் எனத் தெளிந்து கொண்டேன் .

Monsoon is above normal in Karnataka and Tamil nadu this year upto 17th July

 The performance of the monsoon in India so far in 2024 has been mixed, but overall positive with only (-)3% deficient so far from LPA(Long Period Average). In Karnataka and TN rains are above normal at 15% approx excess in Karnataka and 88% above normal approx  in TN upto 17th July

Positive Aspects:

• Above-Normal Rainfall: The India Meteorological Department (IMD) predicted above-normal rainfall for the 2024 monsoon season, with 106% of the Long Period Average (LPA) expected. This has largely held true in many regions.
• Timely Onset: The southwest monsoon made a timely onset over Kerala and progressed well initially, bringing much-needed relief from the summer heatwave.
• Beneficial for Agriculture: Adequate rainfall is crucial for agriculture, which is a significant contributor to the Indian economy. A good monsoon season can boost agricultural output and overall economic growth.

Areas of Concern:

• Uneven Distribution: The distribution of rainfall has been uneven across different regions of India. Some areas have received excess rainfall, leading to floods and related issues, while others have experienced deficient rainfall.
• Delayed Progress in Some Regions: The monsoon's progress has been somewhat delayed in certain regions, leading to concerns about potential droughts and water shortages.

Overall, while the monsoon performance in 2024 has been largely positive, the uneven distribution and delayed progress in some regions raise concerns that need to be monitored closely. The IMD will continue to provide updates and forecasts throughout the season.

Additional Information:

• The southwest monsoon season in India typically lasts from June to September.
• The performance of the monsoon is crucial for agriculture, water resources, and overall economic activity in India.
• You can find more information about the monsoon's progress and forecasts on the IMD website: https://mausam.imd.gov.in/

India's Growth Forecast: A Positive Outlook Supported by Recent Indicators

India's Growth Forecast: A Positive Outlook Supported by Recent Indicators

Several key economic indicators for June 2024 suggest a positive growth trajectory for India:

1. GST Collection: The 7.7% year-on-year growth in GST collection signals a significant increase in economic activity. This rise indicates higher consumer spending and business transactions, reflecting a robust domestic demand.

2. Manufacturing PMI: The PMI reading of 58.3 signifies a strong expansion in the manufacturing sector. This figure indicates increased production and new orders, suggesting a healthy growth momentum in the industrial sector.

3. IIP Growth: The Index of Industrial Production (IIP) growth for April 2024 was 5%, exceeding market expectations. This indicates a broad-based recovery across various industrial sectors, contributing to overall economic growth.

4. Core Sector Growth: While core sector growth slightly slowed to 6.3% in May 2024, it still remains at a healthy level. The core sectors, accounting for over 40% of the IIP, continue to play a significant role in driving industrial output and overall economic growth.

Based on these indicators, India's growth forecast for the fiscal year 2024-25 appears promising. While there may be some challenges, such as global economic uncertainties and potential inflationary pressures, the strong domestic demand, robust manufacturing activity, and positive export performance are expected to drive economic growth in the coming months.

However, it's important to monitor these indicators closely and analyze other relevant data to get a comprehensive picture of the evolving economic landscape and adjust the growth forecast accordingly. Recent data on exports, current account surplus, and forex reserves for June 2024 also indicate a robust growth trajectory for the Indian economy on the external front:

1. Exports: Merchandise exports for May 2024 showed a healthy growth of 12.51%, reaching USD 38.94 billion. This growth was driven by strong demand for engineering goods, petroleum products, and gems and jewelry. For Q1 2024, overall exports grew by 10.3% YoY, indicating a sustained positive trend in international trade.

2. Current Account Surplus: India recorded a current account surplus of 0.6% of GDP in Q4 FY24, the first surplus since Q4 FY21. This surplus was primarily due to higher services exports and remittances, showcasing a strong performance in the services sector and improved external balance.

3. Forex Reserves: India's foreign exchange reserves reached a record high of $654 billion by the end of June 2024. This increase was mainly due to robust capital inflows, higher services exports, and a narrowing current account deficit. Strong forex reserves provide a buffer against external shocks and bolster investor confidence.

Together, these figures suggest a resilient and competitive Indian economy on the global stage. The growth in exports reflects the increasing demand for Indian goods and services in international markets, while the current account surplus and rising forex reserves demonstrate a healthy external balance and strong financial position.

These positive developments on the external front, combined with the robust domestic indicators mentioned earlier, paint a promising picture for India's economic growth in the coming months. While global uncertainties persist, the Indian economy appears well-positioned to navigate challenges and sustain its growth momentum.

Some reforms which Modi Government can look at!

 1) the new Central Govt should look at the possibility of creating a "Stock Options scheme exclusively for BPL/Unorganised sector families" of a basket of Top 500 NSE/BSE cos.which can b used to distribute Stock Market wealth to these poor, through their contribution and a matching contribution by Govt.

2)Already inflation is the biggest Tax.On top of it Salaried Middle class regularly pay Tax .Diminishing marginal utility of income theory suggests that value for money for them is high and By paying Income tax upfront thro TDS before even their Salaries r credited to their accounts, it is the Salaried middle class that bears the onslaught of Tax increases with diminishing income values due to inflation.Through their Taxes they support both Big Farmers , Wealthy Politicians and Businessmen.

3)When Supply side is adequate thro free imports, only cost-push inflation can happen,and it has receded once commodity prices have come down.

4)In the present NPS, many retired r saying the pension income is not 50% of last drawn salary, it also fluctuates and there is no revision considering cost of inflation.If these r addressed thro proper restructuring of NPS,that should be acceptable to retirees.

5) Judicial reforms especially number of adjournments should be strictly restricted with relaxations to be made available only by Chief Justices of the respective Courts.

6)All Ministers in Centre and State Govts, MPs,MLAs,MLCs and other PEPs and their immediate relatives should compulsorily take treatments only in Government Hospitals and their Children must study only in Government Schools.