The troubles for the BJP government are far from over where, on one hand, the nation is up in arms against the unconstitutional and undemocratic NRC and CAA, while on the other, the economic slowdown is hitting all the sectors with devastating consequences. Many BJP leaders including the Finance Minister Nirmala Sitharam have said that India’s economic slowdown is due to the global slowdown and the BJP government’s policies are not responsible for it. However, this claim has been rebutted by esteemed economist Gita Gopinath who is currently the Chief Economist of the International Monetary Fund (IMF).
The International Monetary Fund (IMF) lowered India’s economic growth forecast to 4.8 per cent for this fiscal year owing to the crisis in the non-banking financial sector and weak rural demand. It also cut the world’s growth estimate and blamed the slowdown in India for its move.
The IMF projection, 1.3 percentage points lower than its earlier estimates, is less than the 5 per cent projected by the official advance estimates. The IMF projected India’s economy to grow by 5.8 per cent next year, which is 1.2 percentage points less than its earlier forecast. It also forecast the economy to grow by 6.5 per cent in 2021-22 which is 0.9 percentage point lower than earlier projections.
The negative impact of the economic slowdown was also visible in job mela in Mysuru organised on the Scouts and Guides Grounds in the city on Wednesday. Zilla Panchayat Chief Executive Officer K Jyothi said, “We had invited top and reputed companies. But, only a few of them turned up. However, a large number of job aspirants attended the mela. A majority of the companies are consultancies and training providers. Most of the companies are hiring candidates through consultancies, who also impart training. The companies are not ready to waste money and time on training employees.”
These are troubling times for the country where the nation’s youth are left bereft of jobs and in the absence of jobs and resources, there is a slump in the market as well which would be blamed on the disastrous economic policies of the BJP government.
Shekar Viswanathan, vice chairman and whole-time director of Toyota Kirloskar Motor, also claimed that there is a drastic impact of economic slowdown in the automobile industry and the demand for new four-wheeler vehicles has declined. He mentioned that demonetisation also caused slow down of the economy. “Earlier, people used to get vehicles, including two-wheelers and four-wheelers, by paying cash, the dealers used to have cash counters to count cash. After demonetisation those cash counters are no more, as people do not come with hard cash. This has made every automaker to rethink on their plans and strategies,” added Shekar.
It is necessary that government takes some immediate steps to revive the MSME sector that was killed by demonetization and also take back the GST which made it difficult for a common man to buy commodities easily. The acknowledgment of the mistakes is the first step towards rectification.