HYDERABAD: Indian economy, whose investment-led slowdown broadened into a consumption slump, is likely to take several quarters to recover, said Prof Anil K Sood, who runs a policy think tank called Ideas Sans Ideology.
Unless household earnings get better, along with high-quality job creation and improvement in productivity, economic recovery is unlikely to gain steam, he observed. “We aren’t going to see economic recovery soon. Regaining and sustaining the robust 7.5-8 per cent growth rates will likely take time,” he told TNIE.
According to Sood, household earnings in urban areas (single earning families) should be at least `7.5-10 lakh per annum, and in rural areas it should be above `5 lakh, for the standard of living to start improving. While official estimates on this are unavailable, Sood estimates they are lower than the numbers he suggested as ideal.
For consumption demand to revive, the Centre should consider putting more money into the hands of individuals, he argued.