Srinagar: Former Director General, Centre for Research in Rural and Industrial Development (CRRID), Chandigarh, and renowned Economist, Prof. Sucha Singh Gill, delivered an extension lecture on “Slowdown in Economic Growth” in the Department of Economics, Central University of Kashmir (CUK) here on Wednesday.
Prof S.S Gill highlighted the importance of skilled human capital in the process of growth.
He opined that Gross Capital Formation (GCF) has been declining over the time. After 2013-14 to 2016-17, CGF continuously declined from 33 per cent to 26 per cent.
According to Prof. Gill, the reason behind low economic growth rate is the “decline in GCF.”
He gave some reasons responsible for the decline in GCF. “Firstly, this decline is mainly due to decrease in domestic savings. The decrease in the domestic savings is because of the shift in the distribution of income from the poorer sections of the society to the richer sections. Secondly, it is due to the two recent disruptions viz demonetisation and GST.”
Thirdly, he brought to light the “collapse of policymaking system in India, especially dismantling Planning erosion of decision-making powers of the RBI.”
Finally, he said “the decline in GCF is due to the drastic increase in Foreign Institutional Investment (FII) over Foreign Direct Investment (FDI).”
While concluding his lecture, he emphasised the need for global action and for global action to become a reality, global government is needed.
Earlier, Head Department of Economics, Prof. G M Bhat presented the welcome address.
Dean, School of Social Sciences, Prof. Noor Ahmad Baba and Dr. Imtiyaz ul Haq, Associate Professor, University of Kashmir, were also present.