Opinion | Rural India’s bane: from policy paralysis to policy vacuum
Apathy for rural India is the result of a growth model that gives corporate interests higher priority
The last few weeks have seen several steps from the finance minister to revive the Indian economy. These range from sectoral interventions for automobiles and housing to increased credit access. The government also announced the merger of several public sector banks. The corporate tax rate has also been slashed. For companies that choose to forgo all exemptions, this has been lowered from 30% to 22%, which together with surcharge and cess would amount to an effective rate of 25.2%. For new companies, the rate has been kept at 15%. Understandably, stock markets are cheering, which may give the impression that the economy is back on track.