Question : What is the cause of the Indian economic downturn?

 Question : 

What is the cause of the Indian economic downturn?

Answer: 

GDP, has fallen to minus 23.9 per cent, the biggest economic downturn in independent India. The GDP of almost all countries except China has fallen. France fell 13.8 percent, Italy 12.4 percent, Canada 12 percent, Germany 10.1 percent, the United States 9.5 percent and Japan 7.6 percent. Britain topped the fall list with minus 20 per cent. Now, India has overtaken Britain to top the list with minus 23.9 per cent.

"Everyone knows that the Indian economy is facing such a crisis, except for Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman," said P. Chidambaram, a former Congress minister. But that doesn't seem likely. Because he knew that the Indian economy was going to face a major catastrophe, the Finance Minister pre-arranged the cause of `God's action '.

One of the economists says that India has imposed strict curfew regulations to control the corona and its effects are echoed in the economy. But the biggest tragedy is that despite such a strict curfew, India has not been able to control the corona. India, which ranks third in the list of countries most affected by corona, is now moving towards second place. There are fears that India will come first in this.

Opposition parties and economists have repeatedly warned that the Indian economy is collapsing. Various suggestions were put forward. The rulers, who ignored them all, today lift the entire account and impose it on Corona's head. Prime Minister Modi has said that his dream is to "transform the Indian economy into a $ 5 trillion economy". But, in the context of the current Indian economic downturn, Thanjavur talks eloquently about the toy, the Rajapalayam dog and the oyster dog in 'Mann Ki Baat'. We are very shocked.

The Prime Minister's dream of a `five trillion US dollar economy 'is truly fantastic. Five trillion US dollars is worth Rs 350 lakh crore. If India's economy improves to that extent, India will experience tremendous growth in many sectors, including industry and employment. That is why, when he won for the second time in 2019 and ruled in the middle, the Prime Minister revealed this dream of his. Many then asked, "How is all this possible?" The Prime Minister retaliated against them. He used the BJP general meeting in Lucknow in June last year.

Some ask if a five trillion US dollar economy is possible. Those who ask like that have no faith in the ability of Indians. They argue that "achieving the goal of five trillion dollars is not normal." There must be courage, new possibilities, the ability to sacrifice for development and the dream for a new India. With these, the dream of five trillion US dollars can come true, ”Modi roared. But today, he can see a heavy silence as India's GDP goes into minus. As for the finance minister, he is cool enough to blame God in advance for "everything he does".

The question that needs to be raised now is whether the corona is the sole cause of the current decline. Because the central government says that the corona is the cause of everything. So, who is to blame for the economic downturn before the Corona? ”Chidambaram asked. There was no response from the rulers. The economy was collapsing even before the corona. Opposition parties have stated they will not run in the by-elections, saying "the Modi government's devaluation has hurt the Indian economy as a whole."

Not only anti-government economists, but also pro-government economists and economists who were appointed to key positions during the Modi regime have leveled such criticisms. This was followed by widespread allegations that the Goods and Services Tax (GST) imposed by the Modi government had dealt another blow to the Indian economy. "Industrial prosperity in the Coimbatore and Tiruppur areas has been crippled by the devaluation and the implementation of the GST," the industry said in tears.

The situation of industrialists who were already suffering from various ailments has worsened after the corona. Millions of people have lost their jobs and lost their livelihoods as businesses have collapsed. The rulers say that the corona is the cause of all this.

When we asked BJP state general secretary KT Raghavan about this, he said, “The world economy was affected by the trade war between the US and China before the Corona. There were also economic impacts, such as the Iran issue. Now, Corona has been affected around the world. The GDP of all countries is declining. Therefore, India alone cannot be divided into these. Taking the April quarterly statistics, they are currently criticizing. But now the situation has improved. Factories and companies have begun to operate. Traffic has begun its movement in full swing. So, the situation has changed. India is recovering from the damage. ”

Speaking to Economics Professor Jyoti Sivagyanam, he said, “When the currency devaluation hit the economy hard, there was strong opposition and criticism. Therefore, the Central Government hastily implemented the GST in an effort to rectify those vulnerabilities. It has further worsened the Indian economy.

Already, the corona has come at a time when the economy is collapsing. The federal government's approach was critical in many respects, beginning with the time of Corona dealing with the problems of migrant workers. Not surprisingly, the economy has suffered further. But the rulers' claim that the corona is to blame for the current economic downturn is unacceptable. ”