Public investment in physical and social infrastructure has to be stepped up immediately so that it can stimulate the core sectors and the entire economy through multiplier effect.
Urgent attention needs to be given to the infrastructure sector.
Investments in some large infrastructure projects could provide pump priming and bring out the core sector from its present level of lethargy. The Government needs to kick-start all pending power projects by providing them an incentive package, which includes structured payment guarantees and speedy clearance procedures. Immediate steps should be taken to privatize power distribution in the country. Corporatisation of the major ports should be completed, as early as possible so that these can be de-congested and better facilities could be available. The focus has to be on farm sector with expeditious structural reforms and augmented capital formation in agriculture.