Centre ‘singularly accountable’ for India’s financial issues: Congress
7 min readBy PTI
NEW DELHI: The Congress on Tuesday attacked the Centre over a high UN company projecting a decline in India’s financial development, saying the federal government’s competition that the nation’s financial issues are imported is a “smoke screen” and it’s “singularly responsible” for the woes.
India’s financial development is predicted to say no to five.7 per cent this yr from 8.2 per cent in 2021, the United Nations Conference on Trade and Development (UNCTAD) Trade and Development Report 2022 projected on Monday, citing larger financing price and weaker public expenditures.
Addressing a press convention on the AICC headquarters right here, Congress spokesperson Anshul Avijit stated the BJP authorities and its spin docs maintain quoting high-frequency information to “camouflage” the true well being of the economic system however no person is fooled.
“Inflation remains high, unemployment is increasing and growth estimates are being revised downwards with each passing day,” he stated.
The UNCTAD report on India’s GDP estimate for 2022-23 makes for disturbing information as India’s financial development is predicted to say no to a surprising 5.7 per cent this yr from 8.2 per cent, he stated.
It is predicted to say no to 4.7 per cent within the yr 2023-24, he stated citing the report.
“The BJP government has repeatedly blamed the global economic crisis for its domestic woes. It says our economic problems are ‘imported’. This is a smoke screen. The government is singularly responsible since all our economic indicators were floundering even before global events laid siege,” Avijit stated.
“One must remember that even the 8.7 per cent growth last financial year was due to the very low base. India’s GDP had contracted to -6.6 per cent in the pandemic year 2020-21, and India was one of the worst performers among all emerging economies,” he claimed.
This reduce comes on the again of one other downward revision of the GDP by the Reserve Bank of India final week, from 7.2 per cent to 7 per cent, he stated.
The RBI governor has warned of utmost volatility and the necessity to anchor inflation expectations, he identified.
“The headline interest rate, the repo rate, was also increased by 50 bps to 5.9 per cent in another desperate bid to control price rice. From May this year, the repo rate has increased by 1.9 per cent,” Avijit stated.
One shouldn’t be stunned if there’s one other reduce in GDP estimates after the following Monetary Policy Committee assembly two months from now, and the development continues, he stated.
“The mismatch between a high GDP estimate and the state of the real economy – lack of jobs and output – would be hard to explain,” he stated.
Over the previous three years, the GDP in India has grown simply over 3 per cent and fewer than 4 per cent because the final quarter earlier than the pandemic, Avijit stated.
At such low ranges of development, India can not create extra jobs or take measures to alleviate poverty, he stated.
Similar GDP estimate cuts have been additionally performed by different monetary establishments and ranking companies for 2022-23.
“The pessimism regarding future growth is evident – SBI: 6.8 per cent from 7.5 per cent; Fitch 7 per cent from 7.8 per cent; Moody’s 7.7 from 8.8 per cent; Goldman Sachs: 7 per cent from 7.2 per cent,” the Congress spokesperson stated.
“The lack of contribution by the casual sector is a major motive for the decline in GDP.
According to an SBI report, the casual sector’s contribution to the GDP in 2017-18 was as a lot as 52 per cent.
This has now plummeted to lower than 20 per cent,” he stated.
The weak authorities information on the casual sector implies that speedy counteractive measures can’t be taken, he stated.
As many as 5,907 MSMEs have shut store within the final two years indicating a excessive degree of joblessness and misery, Avijit claimed.
According to CMIE information, unemployment ranges have persistently remained properly above 8 per cent for the previous two years, he stated. The UNCTAD report stated India skilled an enlargement of 8.2 per cent in 2021, the strongest amongst G20 international locations.
As provide chain disruptions eased, rising home demand turned the present account surplus right into a deficit and development decelerated. On the Bharat Jodo Yatra, Avijit stated it has been in Karnataka for 3 days and the response has been overwhelming.
“We are moving steadily towards our goal of uniting India, bridging fault lines, and fighting injustice, economic and social. We march on, hail or shine. “Meanwhile, the Indian economic system, one of many major issues of the Bharat Jodo Yatra, is confronting one unhealthy information after one other,” he stated.
NEW DELHI: The Congress on Tuesday attacked the Centre over a high UN company projecting a decline in India’s financial development, saying the federal government’s competition that the nation’s financial issues are imported is a “smoke screen” and it’s “singularly responsible” for the woes.
India’s financial development is predicted to say no to five.7 per cent this yr from 8.2 per cent in 2021, the United Nations Conference on Trade and Development (UNCTAD) Trade and Development Report 2022 projected on Monday, citing larger financing price and weaker public expenditures.
Addressing a press convention on the AICC headquarters right here, Congress spokesperson Anshul Avijit stated the BJP authorities and its spin docs maintain quoting high-frequency information to “camouflage” the true well being of the economic system however no person is fooled.
“Inflation remains high, unemployment is increasing and growth estimates are being revised downwards with each passing day,” he stated.
The UNCTAD report on India’s GDP estimate for 2022-23 makes for disturbing information as India’s financial development is predicted to say no to a surprising 5.7 per cent this yr from 8.2 per cent, he stated.
It is predicted to say no to 4.7 per cent within the yr 2023-24, he stated citing the report.
“The BJP government has repeatedly blamed the global economic crisis for its domestic woes. It says our economic problems are ‘imported’. This is a smoke screen. The government is singularly responsible since all our economic indicators were floundering even before global events laid siege,” Avijit stated.
“One must remember that even the 8.7 per cent growth last financial year was due to the very low base. India’s GDP had contracted to -6.6 per cent in the pandemic year 2020-21, and India was one of the worst performers among all emerging economies,” he claimed.
This reduce comes on the again of one other downward revision of the GDP by the Reserve Bank of India final week, from 7.2 per cent to 7 per cent, he stated.
The RBI governor has warned of utmost volatility and the necessity to anchor inflation expectations, he identified.
“The headline interest rate, the repo rate, was also increased by 50 bps to 5.9 per cent in another desperate bid to control price rice. From May this year, the repo rate has increased by 1.9 per cent,” Avijit stated.
One shouldn’t be stunned if there’s one other reduce in GDP estimates after the following Monetary Policy Committee assembly two months from now, and the development continues, he stated.
“The mismatch between a high GDP estimate and the state of the real economy – lack of jobs and output – would be hard to explain,” he stated.
Over the previous three years, the GDP in India has grown simply over 3 per cent and fewer than 4 per cent because the final quarter earlier than the pandemic, Avijit stated.
At such low ranges of development, India can not create extra jobs or take measures to alleviate poverty, he stated.
Similar GDP estimate cuts have been additionally performed by different monetary establishments and ranking companies for 2022-23.
“The pessimism regarding future growth is evident – SBI: 6.8 per cent from 7.5 per cent; Fitch 7 per cent from 7.8 per cent; Moody’s 7.7 from 8.8 per cent; Goldman Sachs: 7 per cent from 7.2 per cent,” the Congress spokesperson stated.
“The lack of contribution by the casual sector is a major motive for the decline in GDP.
According to an SBI report, the casual sector’s contribution to the GDP in 2017-18 was as a lot as 52 per cent.
This has now plummeted to lower than 20 per cent,” he stated.
The weak authorities information on the casual sector implies that speedy counteractive measures can’t be taken, he stated.
As many as 5,907 MSMEs have shut store within the final two years indicating a excessive degree of joblessness and misery, Avijit claimed.
According to CMIE information, unemployment ranges have persistently remained properly above 8 per cent for the previous two years, he stated. The UNCTAD report stated India skilled an enlargement of 8.2 per cent in 2021, the strongest amongst G20 international locations.
As provide chain disruptions eased, rising home demand turned the present account surplus right into a deficit and development decelerated. On the Bharat Jodo Yatra, Avijit stated it has been in Karnataka for 3 days and the response has been overwhelming.
“We are moving steadily towards our goal of uniting India, bridging fault lines, and fighting injustice, economic and social. We march on, hail or shine. “Meanwhile, the Indian economic system, one of many major issues of the Bharat Jodo Yatra, is confronting one unhealthy information after one other,” he stated.
