The Indian economy now looks like a stalling aircraft, constantly coming down, alarms flashing, struggling to stay in flight. Despite the government’s promises to make it a $5-trillion economy in five years, there is every sign on the horizon that India has an upstream river to cross.
Big names of the production sector, like ITC and Godrej, have also registered single digit growth. The slouch hasn’t just affected the companies; it has hit every single point on the production chain, and mostly the villages who provide their raw materials.
With purchasing power having taken a steady slump, only time will tell whether or not rural income support and Minimum Support Price (MSP) hikes will be enough to alleviate the collision of a deficient monsoon.
The automobile industry employs 37 million people and contributes to seven percent of the country’s GDP. As of now, with five lakh passenger vehicles and 30 lakh two-wheelers remaining unsold, plants are being strained to shut down in line with dwindling sales that have hit an 8-year low.
Maruti, India’s largest automobile manufacturer has been forced to cut down production, workforce. Its share prices have plummeted 26 percent in the last year. Sales at the auto bellwether are miserable too which gives a clear sign that India’s auto crisis is very much real.
Most Indian corporates were hoping for a trump card from the 2019 Union Budget, but they came up against a dead-end on July 5. After the super-rich surcharge, companies are now being forced to rethink their configuration and look at downsizing.
With domestic conditions already austere, an unreceptive global environment, tariff wars and rising protectionism could soon multiply India’s troubles manifold. Exports have deteriorated by almost 10 per cent in the span of a year. Sluggish global demand and the US-China trade war are adding fuel to an already raging fire.
In the times of such crisis, Indian leadership is busy blaming the millennials for using Ola Uber cabs for the slowdown in the automobile sector. Finance Minister Nirmala Sitharaman said that the young generation prefers to book cabs which is leading to deterioration in automobile sector. This was a childish attempt to avert responsibility by the leaders whose responsibility it is to solve the unemployment and automobile crisis.
PM Narendra Modi already has a habit of blaming first Prime Minister of India, Pt. Jawaharlal Nehru and Congress for any and every problem of the Indian Republic. He has repeatedly attacked Nehru and his policies for the problems country is facing today. UP CM Yogi Adityanath went a step ahead and blamed the British as well as Mughals for the economic crisis the country is going through. He said, “Prior to the Mughal invasion, we contributed to more than 1/3 of the world economy. Our contribution was soaring higher than 36%. After the Mughal rule, before the British invasion, that contribution reduced to 20%. Those who believe that the Britishers were great, (should know) that the British brought it down mere 4%,” he said.
Clubbing British Colonialism with Mughal rule shows the ignorance of history on the part of CM Yogi Adityanath. It is essential for the government to take responsibility for its actions and work towards reforms instead of engaging in childish blame games.