Slowdown in economic growth due to note ban

by CCV · 06/06/2017

Former PM Singh says – By: Express Web Desk, New Delhi, June 6, 2017

GDP in the January-March quarter grew at the slowest pace in at least four quarters at 6.1 per cent as against a 7.0 per cent growth in October-December, data released by Central Statistics Office (CSO) last week showedTwitterGoogle Plus

(Note: Political parties never blame themselves, but only opposition parties and others they cannot get along with. But there are some in all parties who are statesmanlike and give balanced views. One such is Manmohn Sign and another Ghulam Nabi Azad Leader of Opposition. Just listen to them for a change.

What is their assessment of Modi government just completed three years? While accepting the good intentions like wiping out black money that fund terrorist organisations Sigh attributes the country’s economic slow down to “demonitisation” due to which the economy now is running one engine “public sector” while the private sector has collapsed.

According to the leader of opposition Azad, Modi government is one of slogans and publicity, a government of heros on TV an zeros in reality which is quite true. Some of the slogans, we must admit are thought provocking and promises very enticing. Only they are not fulfilled or acted upon.

And Sonia’s comment that harmony in the country is replaced by discord, calm in Kashmir by confrontation and unity in unnecessary things is enforced where diversity should be the norm, deserves attention. What is most threatening seems to be that visual and printed media are now becoming hesitant to bring these views and facts to the general public due to direct and indirect pressures brought on them. The latest is the raids conducted on NDTV premises which is now a focal point of public uproar since much bigger sharks are allowed to swim free without any harassment. This must change. james kottoor, editor)

Former prime minister Manmohan Singh attributed the sharp slowdown in the country’s economic growth to the note ban decision taken by the Centre last November.

The step, that involved withdrawing almost 86 per cent of the currency from circulation, was meant to flush out black money from the economy, slash at the roots of terrorist funding and eliminating counterfeit currency. The Centre defended the decision saying it would lead to long-term gains.

In remarks made at the Congress Working Committee (CWC) meeting in New Delhi, Singh said the economy is running on just ‘one engine of public spending.’ He added that private sector investment has collapsed. The CWC is discussing the current political climate in the country and the upcoming presidential elections.

“Analysis of policies like demonetisation cannot be done through simple post hoc ergo propter hoc. Because it is after this, so it is because of this…impact analysis of a policy is an extremely sophisticated field in econometrics. I would caution against reading a single number which comes after an event as being reflective of the consequences of the event,” Chief Statistician TCA Anant had told the Indian Express. He added that demonetisation is one of the elements impacting GDP.

Opposition leaders like Mamata Banerjee have also criticised the Narendra Modi government over the note ban decision saying she rightly estimated it would lead to job losses and decline in productivity.

The Congress Party on Tuesday hit out at the Narendra Modi government saying in the last three years there was little progress and development in the country.

Addressing a press conference following a meeting of the Congress Working Committee (CWC), senior party leader and Member of Parliament Ghulam Nabi Azad said the Modi government was a hero when it came to being on television, but zero in reality. “Ye sirf naaron aur publicity ki sarkar hai, jo TV pe toh hero dikhti hai par zameeni kaamon mein zero hai (This is a government of slogans and publicity… on TV they look like heroes but on the ground, they are zero),” Azad said, adding that the government has only managed to create ‘fear’ in the last three years.

Following the meeting, party vice-president Rahul Gandhi said vital political issues including the crisis in Jammu and Kashmir, the government’s mishandling of the economy, the upcoming presidential polls and the INC organisation elections were discussed.

Addressing the meeting, party president Sonia Gandhi commented on the current political situation saying, “The Modi government has just completed three years in office. Where there was harmony, there is discord. Where there was tolerance, there is provocation. Where there was relative calm, as in Kashmir, there is growing confrontation, tension and fear. Where there was economic potential, there is stagnation. Where there was rich diversity, there is a brazen campaign to strait-jacket the whole country into a regressive and narrow-minded world-view.”