Cutting to the chase yet again, former prime minister Manmohan Singh advised the government to acknowledge the economic crisis and solve the problems that have led to a sharp drop in GDP growth.

The government has not yet realised the full potential of the economic slowdown, Manmohan Singh told The Hindu BusinessLine during an interview.

He said the government first has to admit that India is going through an economic crisis. Only then it could aim at rationalising Goods and Services Tax (GST), accelerate demand growth, revive agriculture and fixing lack of credit, Singh added.

Having said that, here are five points shared by the Manmohan Singh for the revival of the economy:

RATIONALISE GST

Manmohan Singh reiterated that two of the government's policies -- demonetisation and flawed GST implementation -- have led to the slowdown. While the former cannot be fixed, Manmohan Singh advised the government to rationalise GST rates even if it leads to short-term revenue loss. Not just Singh, several sectors including the ailing auto industry have asked the government to cut GST.

REVIVE DEMAND

Secondly, the former prime minister said the government needs to find "innovative ways" to increase consumer demand, which is a key reason behind the slowdown. Manmohan Singh said slowdown could become a prolonged affair if the government fails to boost consumption, which is one of the key indicators of economic growth. "The fact that sales of Rs 5 biscuits (Parle) have declined tells its own story," Singh said. He said India is already facing the short-term effects of decline due to a drop in consumption.

FIX LABOUR-INTENSIVE SECTORS

The recent slowdown in the automobile and real estate sector, according to Singh, is an early warning and the government should not waste any time in finding remedies to fix labour-intensive sectors. For instance, the automobile industry employs a total of over three million people, out of which more than three lakh have lost their jobs. The figure could go up to 10 lakh given the current mood of the sector, according to industry trackers. Real Estate, which employs lakhs of daily wage labourers, is also going through a period of acute slowdown, which needs to be immediately addressed.

LIQUIDITY BOOST

Manmohan Singh also discussed how liquidity crunch is another trigger behind the economic slowdown. Singh said the liquidity crisis since 2018 has crippled Indian banks and NBFCs, forcing them to choke credit to businesses, especially Medium and Small Scale Enterprises (MSMEs). During the interview, Singh explained how the slowdown among MSMEs is a prolonged affair which started in 2016 due to demonetisation. He also pointed out flaws in GST, which further crippled the MSMEs that are considered to be the backbone of multiple sectors.

RECOGNISE EXPORT OPPORTUNITIES

Last but not the least, Manmohan Singh also advised the government to recognise new export opportunities that arise out of the trade tussle between the US and China. During the interview, Manmohan Singh said a new export roadmap could be beneficial for India. Manmohan Singh also signalled that the government has to find opportunities to attract private investments.