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Economy figures show the Modi government a 'mirror'!

Friday - December 13, 2019 1:14 pm , Category : WTN SPECIAL
Prime Minister Modi worried over continued 'decline' in the economy
Prime Minister Modi worried over continued 'decline' in the economy

The weak economy becomes a challenge for the Modi government  

DEC 13 (WTN) - In the Lok Sabha elections held this year, the NDA under the leadership of Prime Minister Narendra Modi won brilliantly and once again the NDA was successful in forming the government with an absolute majority. There have been many such decisions, including from the Citizenship Amendment Bill to the abolition of Article 370 from the state of Jammu and Kashmir, due to these decisions this year has been historic for the Modi government. But on the economy front, the Modi government has suffered a lot of setbacks this year and has had to face public anger. 

The Modi government is facing public anger over issues like declining GDP growth rate, rising inflation, declining industrial output, and unemployment. It is not that only the Modi government is responsible for the slowdown in the economy. In fact, the global economic slowdown and the ongoing trade war between the US and China have also negatively affected the Indian economy. Statistics show that so far in this financial year, the Indian economy has suffered a lot of setbacks and that is why the GDP growth rate is declining.

The GDP data for the second quarter of the current financial year (2019-20), released on November 29, has once again raised the question of the Modi government's economic policy. The second-quarter figures show that the country's economic situation has deteriorated even more than before. For your information, let us know that the GDP growth rate in the second quarter of the current financial year has been only 4.5 percent, which is the biggest decline in any one quarter in almost 6 years. 

The data for the core sector of October has also disappointed the Modi government. According to the data, the core sector decreased by 5.8 percent in October this year compared to a year ago. Except for the fertilizer sector in the core sectors, the performance of the remaining 7 other sectors has been disappointing. For your information, let us know that 8 major core sectors have about 40 percent share in total industrial production of India. In such a situation, it is natural for the economy to suffer a major setback due to the dismal performance of core sectors. 

At the same time, along with the data of core sectors, the figures of the Index of Industrial Production (IIP) for October also become a cause of concern for the Modi government. For the information, let us know that in the month of October, the Index of Industrial Production (IIP) has recorded a decline of 3.8 percent. According to official figures, industrial production has recorded a decline of 4.3 percent in September and 1.4 percent in August, which is a cause of concern for Prime Minister Modi.

An industry that has been most affected by the economic downturn is the auto industry. For your information, let us know that the slowdown of the auto industry continued in November. According to data released by SIAM (Society of Indian Automobile Manufacturers), the auto sector's overall sales in November registered a 12.05 percent decline on an annual basis. At the same time, from April to November, there has been a decrease of about 16 percent in auto sales. 

On the other hand, RBI i.e. Reserve Bank of India has given a big shock to the Modi government in its latest estimate. In its monetary policy review, the RBI has reduced the country's GDP growth rate estimate from 6.1 percent to 5 percent during FY 2019-20. In its review, the RBI has said that economic activities have weakened further due to various reasons, causing the production gap to remain negative.

At the same time, the Modi government has received a big shock on the issue of inflation. The rate of retail inflation rose to 5.54 percent in November; the highest level in three years due to there is a rise in prices of protein-rich foods like onions, vegetables, pulses, and meat-fish. Earlier in July 2016, retail inflation was 6.07 percent. This is the figure which is the most cause of concern for the Modi government because the general public of this country is directly connected to these figures. 

Due to the global economic slowdown and the dismal performance of the country's economy, people's trust in the economy has also decreased. According to an RBI survey report, the consumer confidence index has fallen to 85.7 points in November, the lowest level since Narendra Modi became Prime Minister in 2014. For your information, let us know that the decline in the consumer confidence index means that people have lost confidence in the economy of the country and people are buying less. And buying less naturally affects the markets and industries. 

Clearly, these figures are no less than a big setback for the Modi government. However, the global economic slowdown has greatly affected a fast-growing economy like India. But the Modi government cannot only blame the global economic downturn for the decline in the economy. The global economic slowdown and the US-China trade war maybe some of the reasons that are affecting the Indian economy, but these reasons are solely responsible for the decline of the economy is not right anyway.