Overseeing oversights (GS-3, The Hindu)

Context:- Recently government issues a notification to reduce the saving rate and now government has taken it back.

Why such move:- Indian economy is the high interest rate economy due to high saving rates.

  • previously economic survey also gave suggestions about low interest rate.
  • Low saving interest rate means, low interest rate for business.
  • Low saving rate will boost the demand because people will spend more.
  • It will also encourage the investment in the other areas such as real state, share markets etc.

Why recalled:-

Swarn Singh

Plutus IAS Current Affair Team

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