New Finance Minister Nirmala Sitharaman faces major challenges to revive the economy: What are these challenges? The day she took charge, the official data showed that India’s GDP grew by 5.8% in January-March quarter of 2018-19. The GDP growth for the entire financial year was 6.8 %, the slowest since 2014-15.
Unemployment rate at 6.1 % in 2017-18 at 6.1% was highest in the last 45 years, as per the official data. Agriculture growth was mere 2.9% in 2018-19 which is reflective of rural distress. Extension of the PM Kisan Yojana under which farmers are paid Rs 6,000 per annum into their bank account to 14.5 crore is a goodwill measure of the new Modi Government.
Mrs Sitharaman also has a major headache in the form of the non-banking finance companies facing cash crunch and confidence of investors. The parallel banking channel has been hit , affecting the consumer demand in the process.