New government needs to fix the economy first: Report

Mumbai, May 23 (IANS) The macroeconomic situation has been mixed since the end of the last fiscal and there is a need of some direct intervention by the next government in areas like agriculture, employment and the banking sector, a report said on Thursday.

The Care report said that the government must look internally and fill up all the vacant positions that have been on hold.

For private sector employment generation, the government needs to focus on the SME segment as well as start-ups so as to increase job opportunities, it said.

"We need to ensure that core manufacturing takes place and not just assembly of components," the report said.

On agriculture, the report said that in order to reduce the reliance on monsoons for agriculture production, the ambitious project of inter-linking Indian rivers should be pushed as it can be a long-term resolution for the agriculture-related issues.

On the banking sector, the report said that the sector is going through challenges of capital and asset quality.

"The banks continue to be affected by the delays in the NCLT (National Company Law Tribunal) resolution process. Hence review of the NCLT procedure with the view of speeding up the process, seems necessary.

"In this context, the IBC (Insolvency and Bankruptcy Code) may need some amendments as the rate of resolution of bankrupt companies can be improved," the report said.

It also said that the government has been the main driver of capex in the last 2-3 years and the steady pace of investment should continue.

"The focus must now be on reinvigorating private investment and here it would be necessary to review the clogs that are in the way of investment," it added.

(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)