Conning's Franklin Says India Needs Fiscal Policy

The video discusses the impact of interest rates on inflation in India, suggesting a shift towards fiscal policy for economic growth. It highlights India's GDP growth improvement, challenges in the rural economy, and the importance of infrastructure investment. The implementation of GST is slow, affecting small businesses. The fiscal position is under scrutiny due to a high budget deficit, necessitating a conservative monetary policy.

What is suggested as a more effective tool than interest rates for stimulating economic growth in India?

• Fiscal policy

• Exchange rate adjustments

• Monetary policy

• Trade policy

What is one of the main challenges faced by the rural parts of the Indian economy?

• Overproduction of goods

• Excessive foreign investment

• Lack of infrastructure

• High inflation rates

What is a significant issue with the implementation of GST in India?

• It requires extensive paperwork and systems

• It has been too simple to implement

• It has reduced state revenues

• It has led to increased inflation

What is the purpose of harmonizing tax rates across Indian states?

• To increase state revenues

• To concentrate economic activity in certain states

• To ensure equal economic opportunities across states

• To simplify the tax collection process

What concern is emerging around India's fiscal position?

• Decreasing foreign investments

• Falling GDP growth

• Increasing budget deficit

• Rising inflation rates