Survey by Pew Research finds that 56% of surveyed Indians believe economic situation is good, down from 83% in 2017.
New Delhi: The confidence of Indians in the economy could pose a stiff challenge to the Modi government and the BJP as they brace for crucial elections in the heartland states and national elections early next year.
A survey by Pew Research has found that fewer Indians believe that the country’s economy is doing well in 2018 as compared to 2017.
According to the survey, typically conducted around February-March, 56 per cent Indians surveyed felt that the economy was doing well — down from 83 per cent in 2017, a fall of 27 points.
The dip in confidence in the economy is all the more starker as it had been rising sharply since the BJP-led NDA government took power at the Centre in 2014 after promising growth and development for all.
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The Pew report said that the number of Indians confident of the economy had risen drastically to 83 per cent in 2017 from 36 per cent in 2014 before the sharp decline in 2018.
Economic challenges for the government
While India’s gross domestic product (GDP) grew at 8.2 per cent in the first quarter of the current financial year, job creation remains one of the biggest challenges for the Modi government.
Though the government claimed that 70 lakh jobs were created in the formal sector last year, in addition to the ones generated in the unorganised sector, a recent report by the Centre for Monitoring Indian Economy (CMIE) said unemployment during April-June 2018 had increased by 1 per cent year-on-year.
One of the main promises of Prime Minister Narendra Modi in 2014 was the creation of 2 crore jobs every year.
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Of late, the government has also had to contend with rising fuel prices and widening trade and current account deficits. A depreciating rupee and foreign exchange reserves have added to the problem.
PM hold meetings
Modi, meanwhile, held back-to-back meetings last weekend to take stock of the economic situation.
“There are some issues at this point and those have emerged due to external situations,” said a senior finance ministry official. “They have come up due to the rising uncertainties globally and with several countries adopting protectionist measures… The economic fundamentals in India are strong”.
We are yet not discounting for the SIP investors’ panic. If they want to get redemption of their monies from various mutual funds, what are we going to have on our hands?
Ten years ago UTI was the ONLY and by corollary the most powerful mutual fund. And their most famous scheme was called UNIT – 64. Ask someone from those times what happened to that scheme’s refund requests. Let us hope for the best. God is great. (Some people may tell you that He belongs to the BJP)
Ha Ha Ha…. true it’s much worse than it is being projected generally which is the reason why still 56% believe that it is good.
Conversely at the same time it is not that bad that we become totally pessimistic. Some structural reforms like NPA cleansing, IBC etc were necessary though immediate results of it has scarred the corporate landscape and economy in general.
What is more worrying is the fall in Gross Capital Formation and small savings – these have long term consequences. Make In India has been total non-starter and India as a manufacturing economy may now be a pipe dream. These are bigger concerns and hope that Indian Government takes some concrete measures on these front.
I would be very happy to meet some of these 56% people.