Restoring high growth

Look beyond large corporations and release the growth potential of farmers and small entrepreneurs

The recent corporation rate tax cuts have enthused the share market but are not sufficient to lift the growth rate to anywhere near the levels required for the $5 trillion economy goal. The reduction in the corporation tax will boost earnings but will not boost investment till companies see clear signs of demand growth.  

An obvious measure to boost demand for basic consumer goods is to pump money into the rural economy through higher spending on MGNREGA. If this means breaking the  FRBM budget constraints, so be it.  The obsession with inflation control is misplaced in an economy where the more