Jump to content

Thanks Modi for ruining the Indian economy, Rural distress


Recommended Posts

GDP growth rate slows to 7.1% from 8.2% in last quarter

India’s gross domestic product (GDP) (at market prices) grew at 7.1% between July 31 and September 30 (Q2 2019), a decline of 1.1 percentage points compared to the period between April 30 and June 30 (Q1 2019), not so much because of a slowdown in economic activity but the so-called base effect which amplified growth in the last quarter.

Gross Value Added (GVA) growth went down by an equal amount between Q1 2019 and Q2 2019. The latest GDP growth numbers are 30 basis points lower than a Reuters poll forecast.

GDP growth between April and June 2017 was abnormally low at 5.6% in anticipation of the disruption from goods and services tax (GST), which was to be implemented in July 2017. This led to a spike in growth in Q1 2019 to 8.2%. That makes the 7.1% rate look low.

Still, the latest GDP numbers underline a deepening of rural distress in the Indian economy. Real growth in agriculture and allied activities component of GVA in Q2 2019 is higher than the nominal growth figures. This means that agricultural prices have actually been declining in the economy.

Thousands of farmers marched in the national capital on the day these figures were released, with remunerative prices being one of the key demands of the protest. These statistics also suggest that the government’s decision to hike minimum support prices (MSP) has failed to boost farm prices, and hence incomes.

Pranab Sen, an economist and India’s former chief statistician, said there is little the government can do to resolve this crisis in time for the 2019 elections. The bearish trend in farm prices is largely a reflection of a liquidity crisis in the rural economy, he explained. MSP based procurement and MGNREGS spending, the main engines of liquidity injection by the government, have remained flat under the present government, Sen said.

He also said the rural economy has still not recovered from the liquidity shock administered by demonetization. We also need to understand that our inflation targeting framework needs to differentiate between agricultural and non-agricultural prices, otherwise the rural crisis will persist, Sen added.

What does the latest GDP data mean for annual growth? Speaking to Bloomberg Quint Soumya Kanti Ghosh, the chief economic adviser for State Bank of India expected the annual GDP growth for 2018-19 to be closer to 7%. DK Joshi, chief economist at Crisil expected the annual GDP growth be 7.4% with a downward bias. India’s GDP has had a compound annual growth rate of 7.3% under the first three years of the present government (2014-15 and 2017-18). The Economic Survey 2017-18 has estimated GDP growth in 2018-19 to be in the range of 7-7.5%.

Link to comment
Share on other sites

7 minutes ago, krantionline29 said:

7% has become the new Hindu rate of growth, thanks to the messed up policies of our visionary PM , whose idea of growth is to keep taxing people more and more 

Public lo taxes meeda frustration oka range lo vundi le...  Earn chesthe taxes, spend chesthe taxes, save chesi invest chesthe taxes, House konte 18% tax, Business lu run cheyyali ante corruption and taxes... IT department literally screwing many people in other ways.. Peaks of frustration lo vunnaru public.. 

Link to comment
Share on other sites

Here is the full text of Manmohan Singh’s full speech in Rajya Sabha (2016):

Prime Minister has been arguing that this is the way to curb black money, to prevent growth of forfeiture currency notes and also to help in control of terrorist finance activities. I do not disagree with these objectives. But I do want to point out this that in the process of demonetisation monumental mismanagement has been undertaken about which today there is no two opinions in the country as a whole. Even those who say that this measure will do harm or cause distress in the short term but be in the interests of the country in the long run should be reminded of what John Keynes said once,” In the long run all of us are dead.”

And therefore, it is important to take note of grievances of the ordinary people who have suffered as a result of this imposition on the country overnight by the Prime Minister. And I say so with all responsibilities, that we do not know what will be the final outcome.

Prime Minister has said that we should wait for 50 days. Well 50 days is a short period. But for those who are poor and from the deprived sections of the society even 50 days torture can bring about disastrous effects. And that’s why about 60 to 65 people have lost their lives, maybe more. And what has been done can weaken and erode our people’s confidence in the currency system and in the banking system.

I would like to know from the Prime Minister the name of any country he may think of where people have deposited their money in the banks but they are not allowed to withdraw their money. This alone,I think, is enough to condemn what has been done in the name of greater good of the people of the country.

And Sir, I would further like to point out that in my opinion that the way the scheme has been implemented will hurt agricultural growth in our country, will hurt small industry, will hurt all those people who are in the informal sector of the economy. And my own feeling is that the national income, that is the GDP, can decline by about 2 per cent as a result of what has been done. This is an underestimate, not an overestimate. Therefore, I feel that the Prime Minister must come up with some constructive proposal on how we can implement this scheme and at the same time prevent this distress that has been caused to the common people.
 
It is no good that everyday the banking system comes with modification of the rules, the conditions under which the people can withdraw money. That reflects very poorly on the Prime Minister’s office, on the Finance Minister’s office and on the Reserve Bank of India. I am very sorry that the Reserve Bank of India has been exposed to this sort of criticism which I think is fully justified.
 
I, therefore, would not like to say much more than this. I urge upon the Prime Minister to find practical, pragmatic ways and means to relieve the distress of the people who happen to be a great majority. After all, 90 per cent of our people work in the informal sector, 55 per cent of our workers in agriculture are reeling in distress. The cooperative banking system which serves large number of people in the rural areas is non-functional and has been prevented from handling cash. So, in all these measures convince me that the way this scheme has been implemented is a monumental management failure, and in fact, it is a case of organised loot, legalised plunder of the common people.
 
With these words, sir, I conclude. It is not my intention to pick holes in what one side does or another side does. But I sincerely hope that the Prime Minister will view that this late hour will help us to find practical, pragmatic ways and means to provide relief to the suffering of the people of this country. Thank you.
 
Link to comment
Share on other sites

7 minutes ago, nivas_hyd said:

Public lo taxes meeda frustration oka range lo vundi le...  Earn chesthe taxes, spend chesthe taxes, save chesi invest chesthe taxes, House konte 18% tax, Business lu run cheyyali ante corruption and taxes... IT department literally screwing many people in other ways.. Peaks of frustration lo vunnaru public.. 

Saami sikharam __/\__

He has no empathy towards the people.

He subjected whole country to torture for 3 months

Link to comment
Share on other sites

In the first half of FY 2016-17, India’s imports from China stood at Rs. 1.96 lakh crore. During the same period in FY 2017-18, the imports from China increased to Rs. 2.41 lakh crore. This unprecedented increase of imports by more than Rs. 45,000 crore, which is a 23% increase in a year, can be attributed largely to demonetisation and GST. 

Link to comment
Share on other sites

15 minutes ago, krantionline29 said:

The growth in private investment is at a 25 year low. This is terrible for India’s economy

Particularly small scale businesses lo terrible.. Many small/medium scale business people comes our home to discuss process and tax compliance discussion ki.. Most of them are crying.. Sad to see the bad environment for business people..

Link to comment
Share on other sites

26 minutes ago, Rajakeeyam said:

According to the Central Statistics Office (CSO) advance estimates, Indian economy is expected to grow at 7.2 per cent in 2018-19 against 6.7 per cent in the previous fiscal.

Is 7 percent growth enough? Remember, back when the current Indian government was sworn in “India growing at 5 percent, 6 percent or even 7 percent is not an India that is going to face up to [the challenge of youth unemployment],” Finance Minister Arun Jaitley warned back then. And he was right. In India, a country where a million young people join the job market every month, 7 percent growth simply isn’t enough.

Mr. Jaitley prophesied that his government is going to deliver double digit growth..lol

Now they are boasting about 7 % :D

 

 

Link to comment
Share on other sites

6 minutes ago, krantionline29 said:

Is 7 percent growth enough? Remember, back when the current Indian government was sworn in “India growing at 5 percent, 6 percent or even 7 percent is not an India that is going to face up to [the challenge of youth unemployment],” Finance Minister Arun Jaitley warned back then. And he was right. In India, a country where a million young people join the job market every month, 7 percent growth simply isn’t enough.

Mr. Jaitley prophesied that his government is going to deliver double digit growth..lol

Now they are boasting about 7 % :D

 

 

Yes reforms chesinappudu initial down common. We are climbing up now. Double digit growth will happen in next term. We are not going downward or in ruined state like in UPA2

Link to comment
Share on other sites

9 minutes ago, Rajakeeyam said:

Yes reforms chesetappudu initial down common. We are climbing up now. Double digit growth will happen in next term. We are not going downward or in ruined state like in UPA2

worldwide organizations projections ala levu annai..

Also reforms should not be synonym for punishing people

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...