New Delhi: Agricultural reforms and the revival of small enterprises will be key to driving private investment even as economists cautioned that an immediate recovery is unlikely.

“The global economy has begun to slow down, so growth has to be domestically driven. A fiscal stimulus may not do the trick by itself, but bringing demand up should be the government’s priority,” said former chief statistician Pronab Sen.

Consumption demand is going to come from agriculture and micro, small and medium incomes, that is, from the poor, and that should be the focus area.

“These two areas particularly need attention because while agriculture is going through a period of deflation, the SME (small and medium enterprises) sector is still broken,” he said.

The statistics office has projected gross fixed capital formation growing at 12.2% in FY19 and India Ratings expects it to clock 10.3% in FY20. An In ..


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