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3:11 pm - Tuesday November 25, 4983

GDP Slowdown

The demonetisation of 500/1000 rupee notes has ultimately led to slow down in Gross Domestic Product (GDP) the lowest in the last three year of Modi Government. In the quarter of January – March it has come down to 6.1 per cent from 7 per cent.

The BJP Modi Governments stormed into power on the commitment to being back black money of Indians staked in foreign banks. But in the last three years government proved total failure on this count. Under public pressure it announced demonetisation to bring out domestic black money.

The demonetisation caused sudden pull down in public demands upsetting entire trade, commerce and business of the country. The 87 percent of prevalent currency as money supply gone out of circulation and G.D.P slumped to 6.1 per cent. The reason cited that big currency notes of 500/1000 were generating black money and were demonetized. But strangely instead of issuing new currency notes the government issued Rs. 2000 notes bigger than the 500/1000 notes.

The Government yet not explained why it had issued notes of much higher currency. The people starved of new currency notes as the government security press were drafted to print Rs. 2000 notes. In the assessment it is revealed that the manufacturing growth rate has come down to 5.3 per cent from 12.7 per cent.

In construction sector it become negative as it come down 6 per cent to minus 3.7 per cent. Mr. Sandeep Jajodia President of the Associated Chamber of Commerce and Industry has said that the industrial and commerce sector yet not come out of adverse effect of the demonetisation.

To generate employment potential it industrial sector the Reserve Bank should being down the bank lending rates. The Modi also made commitment that it would generate 2 lakh new jobs every year. But the last three years of its rule the there are reduction in jobs. Only in the agriculture sector the growth rate has gone up from 0.7 per cent to 4.9 per cent. But it is due to natural factor of good monsoon.

In the 8 prime industries of coal, petro, crude oil and cement the production have come down. It has declined the industrial growth rate to 2.5 per cent from 8.7 per cent. The claim of the Government that demonetisation would root out the fake currency is not a reality. The fake currency is there even in the A.T.M. of banks.

The government emphasis on the transaction on ine also risky as the online fraud cases are in the increase. The banks are also not helping out and wash of it hands blaming the victims that it was there fault to fall in trap. The government sector is making lame excuses that adverse impact of demonetisation was a temporary phase and the economy would pick up soon.

Posted in: Editorial

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