Economy hits a low, but chief economic advisor says necessary steps are being taken
Things are not exactly looking bright for the economy with the Indian rupee plummeting against the US dollar in what is its worst monthly loss in six years. The rupee is currently at its lowest ebb in Asia for August. One does not really have to be an economist to realize that we are not riding high at the moment. There is insecurity about jobs and people just do not have as much purchasing power as they did a few years ago. This can be explained by the fact that GDP growth in the period from April to June, 2019 was recorded at a mere 5%, which is the lowest since 2013. For the common man, the figures translate to loss of income. How the economy is faring is gauged, among others, by indicators such as sale of passenger and commercial vehicles, flight tickets, production and sale of consumer durables, among others. There has been a decline in all these aspects during the specified period. When asked if 7% rate of growth can be achieved this financial year, chief economic advisor Krishnamurthy Subramanian said, “we will wait and watch.” This came after finance minister Nirmala Sitharaman announced merger of public sector banks including Punjab National Bank, Oriental Bank of Commerce and United Bank; Union Bank, Andhra Bank and Corporation Bank; Canara Bank and Syndicate Bank; Indian Bank and Allahabad bank. https://www.ptcnews.tv/gst-brings-transparency-in-business-pm-modi/ Subramanian attributed the current slowdown to global trends. “Impact comes, especially, from global headwinds due to deceleration in developed economies, Sino-American trade conflict etc. Similar phenomena were observed previously during Q4 2012-13 and Q4 2013-14, when growth was around 5 per cent,” he said in a series of tweets. At an interaction with mediapersons, he tried to allay fears saying, “The government is taking all necessary steps, both in terms of the short run and medium run structural reforms to take care of the situation.” -PTC News
