Kshitiz Kant; Weekend Special
Deputy Chairman of NITI Aayog Rajiv Kumar said this week
that there had been an unprecedented cash crisis in the Indian economy. During
an event in Delhi, he said that in the last 70 years no one saw a situation
where the entire financial sector was going through a period of turmoil. Rajiv
Kumar said, 'Nobody in the private sector is trusting others. Nobody is willing
to give loans to anyone. Everyone is sitting on the cash. '
The Deputy Chairman of NITI Aayog also blamed
demonetisation for this crisis. Rajiv Kumar said, 'Everything has changed after
demonetisation, GST and IBC (Insolvency Act). Earlier 35 percent cash was
available which has now reduced considerably. For these reasons, the situation
has become very complicated. According to him, extraordinary steps have to be
taken to break this impasse. Rajiv Kumar said, 'The government should do
everything possible to remove the distrusts of the private sector.'
Earlier,
many names of industry including HDFC chief Deepak Parekh have also said about
the unprecedented crisis in the economy. Due to the slowdown in the automobile
sector, more than three and a half lakh jobs have been reported slash since
April. There is also coming negative news from other fronts whether it may be
from manufacturing or to service sector. Only the news is to be noticed that
the head of the Reserve Bank, Shaktikanta Das, has said that the recession is
deepening.
Amid
the negative news coming from the industrial sectors, the statement of Reserve
Bank of India (RBI) Governor, Shaktikanta Das, may also increase the difficulty
of the Modi government.
According to him, economic activity after June
2019 indicates that the Indian economy is slowing down further. Shaktikanta Das
said this in the meeting of the Monetary Policy Committee held on August 7. The
proceedings of the meeting (minutes of the meeting) were released on Wednesday
last week.
Shaktikanta
Das said that the signs of further reduction in domestic demand are clear. He
said that industrial activities had come to a standstill even in May this year,
especially the slowdown in manufacturing and the mining were clearly visible.
According to the
RBI head, due to decrease in domestic growth rate and the uncertainty in the
global economic environment, there is a need to increase domestic demand and
encourage investment. RBI has continuously cut the repo rate for the last three
times.
A partial review of economists activities
Subramaniam
Swamy’s letter to PM Modi
What Swamy had written in
letter to PM Modi on 12th of May 2016. He had conveyed PM to send Raghuramrajan
back to Chicago alleging him of his policies which had caused the rise in
dearness in the country.
According
to social media, the BJP leaders were resented on Rajan’s comment because he
was vocal and had commented truly time to time on government.
Raghuramrajan’s
tenure completed anyhow
On 18th june 2016, Facing the cackling among government on
economic decline RBI Governor Raghuramrajan had said that he was reluctant to
work on second term. In spite of it he had said that even if the government had
intended to extend his services for the second term, he would have like better
go on his teaching profession.
The people were then seen to congrate Subramaniam Sawmy because he had
written a letter to PM Modi to remove Rajan.
What comment came from NITI Ayog
The Modi led
BJP government founded NITI Ayog and its deputy chairman on 3 September 2018
had made responsible then RBI governor Raghuramrajan for the economic decline
in India.
The matter was
then in limelight and many on social media were speaking that the Union
Government had made this statement through deputy chairman for hiding its
failure. The people then were introgative to NITI Ayog about which policies did
they prove helpful to the country instead of making scapegoat to the RBI
governor Raghuram Rajan. Even the people in social media had been so much
attacking that they had compared Raghuramrajan to Pt Nehru. It was then in Modi
government most prevalent that the wrong way of economic policies had been
adopted in Nehru regime; consequently the Indian economy was going to be
derailed in Modi's first term.
Yaswant Sinha; former Minister in BJP
Government
“Petrol,
diesel and gas prices are rising and are hitting all time highs daily. Why are
opposition parties not hitting the streets? What are they waiting for?”
The statement was in media on 4 September 2018. The statement came by a senior BJP leader and former finance and foreign minister in Union Government during the tenure of Atal Bihari Bajpayee led BJP Government. Exactly the statement was propagandized then saying it a repercussion of resentment against Modi led BJP government which had not given him place in the ministries portfolios.
The statement was in media on 4 September 2018. The statement came by a senior BJP leader and former finance and foreign minister in Union Government during the tenure of Atal Bihari Bajpayee led BJP Government. Exactly the statement was propagandized then saying it a repercussion of resentment against Modi led BJP government which had not given him place in the ministries portfolios.
What did Urjit Patel, pro-Modi government RBI Governor
Urjit Patel
who had taken charge from Raghuramrajan also resigned over a controversy of the
reserved fund in bank. Modi Government and RBI Governor, Urjit Patel, now had
been face to face for the reserve fund.
A senior
journalist had commented through tweet:"Urjitpatel had shown all his
tactic which the government post holding
person could seldom or ever shown. Taking risk and sacrificing on someone’s own
level for the prestige and autonomy for his institution are a respectful work
for nation."
Another famous
journalist had commented on this resignation: “Urjit Patel has resigned…it is
very ironical that Raghuramrajan was not allowed for the second term because he
was self decisive and was vocal very much and now another RBI Governor who was
away from all the showmanship and introvert has resigned.”