Always keep in mind the following equation for writing answer:
Overall GDP= C+I+G+X-M
Measure to improve investment:
- Lowering of corporate tax rate to increase investment.
- Lowering of the repo rate by 135bpsc. To increase the access to finance.
- Easier of FDI norms. Most of the FDI is allowed by automatic route and others via government route.
- Retail investors are encouraged to invest in Mutual funds Industry, Secondary market, Primary market.
- Tax holidays to new startups under stratup India scheme.
- Export promotion scheme like Noryatbandhu scheme.
Measure to improve consumption:
- Lowering of Personal taxes on the form of Income tax to improve consumption.
- Capital infusion in the banks.
- More spending on welfare schemes for example 2000 RS cash transfer to farmers,
- More focus on creation of Jobs
- Bringing more people under social security net.