Next governmet would need to fix the economy first: Report

Mumbai, May 23 (IANS) The macro-economic situation has been mixed by the end of last fiscal, needing direct intervention by the next government in areas such as agriculture, employment and the banking sector, a report said on Thursday.

The Care report said the government must look internally and fill all vacancies 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 the opportunities.

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

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

On the banking sector, the report flagged that the sector is going through challenges of capital and asset quality. "The banks continue to be affected by the delays in the NCLT resolution process. Hence a review of the NCLT procedure with the view of speeding up the process, seems necessary.

"The IBC may need some amendments as the rate of resolution of bankrupt companies can be improved," the report said.

The report said 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.

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