recession in india and the measures needed

Jayathi Ghosh , in her article, “Hardly the brick and mortar of revival “(29.8.190) in The Hindu has very correctly pointed out where all the government has faulted , before prescribing measures to halt the recession trend .Any doctor would prescribe medicines to a patient only after diagnosing the root cause of an illness or a disease . The same principle has to be applied before deciding or announcing  measures to correct disturbances in the economy, especially when it is of serious nature .  Mainly, the government should have the straight forwardness to accept four things viz., acceptance of the  economic chaos created by demonetisation  via crippling of the small scale sector resulting in massive joblessness ,the tax confusion created by hastily introduction of GST tax structure , resulting in fall in tax revenue, fall in effective demand , especially from poor and middle class due  irrational GST rates on articles common consumption and the climate of uncertainty and lack of confidence of investors due to disappointment over government reluctance to provide fiscal concessions and easy credit facilities. The immediate remedy  to correct recession trend should start from demand side by, putting more money into the pockets of middle and  poor class  through control of inflation , creation  of more jobs to rural poor through  MGNREGS and then concentrate on supply side after the effective demand  start showing upward trend  . For this to happen , unemployment insurance fund can be enhanced and  state governments can be urged  take up new small public work projects  or comple the ongoing ones urgently