Sunday, 23 January, 2022
HomeOpinionIndia’s economic crisis has only one root cause

India’s economic crisis has only one root cause

Prime Minister Narendra Modi cannot escape responsibility for India’s economic slowdown caused by his acts of omission and commission.

Text Size:

The Indian economy has been in doldrums since 8 pm on 8 November 2016, and the Narendra Modi government has finally begun to admit there’s a problem.

The strongest admission yet came Thursday when NITI Aayog vice-chairman Rajiv Kumar said, “Nobody had faced this sort of situation in the last 70 years where entire financial system was under threat.”

He added that the root cause of the problem lay in the UPA-2 years: “The entire episode started with indiscriminate lending during 2009-14 leading [to] rise in non-performing assets (NPAs) post-2014.”

Yes, Manmohan Singh left the economy in a mess in 2014, we know that. If everything was fine, why would people have voted out the UPA? Modi’s job was precisely to fix the economy, and he contested the 2014 election on that very issue.

The good days will come, he promised. Instead, Modi took a bad situation and made it worse.

Today, there is only one root cause for the economic crisis we are facing: the poor leadership of PM Narendra Modi. Here are some of Modi’s acts of omission and commission directly responsible for bringing the Indian economy to a point of crisis.


Also read: Panic in Kashmir helps Modi deflect attention from sinking economy, even if fear is real


1. Letting banking crisis fester

It was only in late 2015, with then RBI governor Raghuram Rajan’s push that the banks started cleaning up their balance sheets, ridden by hidden non-performing assets. The Modi government should have seen this risk, to begin with, and addressed the problem first thing. The bank recapitalisation that began later should have begun much earlier too. Rajan had also sent the PMO a list of top defaulters, but no action was taken. Stressed with NPAs, banks reduced giving out credit to industry, contributing to a liquidity crunch.

2. Not moving projects

Thanks to the ‘policy paralysis’ of the UPA-2 years, a number of infrastructure and industry projects were stalled. Land acquisition and environmental clearances were a major hurdle. Like a statesman, Modi needed to get his hands dirty to clean up the mess, get the projects going. Instead, he made it clear his priority was politics over India’s progress when he went back on amending the land acquisition law. Perhaps just because Rahul Gandhi called him “suit-boot ki sarkar”. The stalling of projects was a big reason why loans went bad, particularly in the case of the infrastructure-lending IL&FS.

3. Gimmicks as policy 

Narendra Modi launched one big plan after another, and each one was launched almost as if it was the beginning of a revolution. But nothing has come out of most of them. Make in India, Skill India, Digital India, Startup India, Stand Up India, this India, that India… none of them has brought about the revolution they promised.

The ‘Ease of Doing Business’ rankings have been gamed because the rankings matter more than reality. Arun Shourie will always have the last laugh over Modinomics – headline management over economic management.


Also read: Here’s how Modi govt can help make India a $5 trillion economy


4. Demonetisation 

Instead of doing what was needed, Modi enforced economic quackery over 1.3 billion people. This plan to finish the black economy overnight was supposed to mop up Rs 4-5 lakh crores, but brought loose change. Demonetisation killed the informal economy, disrupted age-old economic systems and caused job losses. We are still facing its consequences and it brought no benefits at all. The government did what it does best: suppressed a report that showed corporate investments dropped by 60 per cent in the demonetisation year.

The move also scared investors about policy uncertainty in India: no one knows when Modi could come on TV and change everything, just like that. Rumours of the demonetisation of even the Rs 2,000 note keep circulating in the market.

5. Vilification of business

Along with demonetisation came the culture of vilifying business. Business people were being painted as corrupt crooks and Modi made them stand in a queue. The truth is that everyone managed to convert their black money into white through demonetisation, but the vilification of business for political gains further made business reluctant to invest.

Modi did say demonetisation was the first of many things to straighten the corrupt.

6. Messing up GST 

You can find nut job propaganda platforms defend demonetisation, but you will be hard-pressed to find anyone explain how the Indian economy has benefited from the Goods and Services Tax.

Unlike demonetisation, this was actually a good idea. But if you want to see how good ideas are turned into nightmares, see the Modi government’s execution of the GST. Modi defined it as a Good and Simple Tax, but it has turned out to be neither. It further made life tougher for small and medium enterprises. With five tax rates and absolute compliance requirements from day one, the GST was launched in a hurry without even testing its software. Its rules were changed again and again, as if chartered accountants were super-computers. Even now, the GST needs a lot of reform.


Also read: Modi’s suspect GDP numbers have done real damage to India’s economy


7. Unprepared for NBFC crisis

Already facing a banking NPA crisis, the Modi government was again caught sleeping at the wheel when crisis hit non-banking finance institutions. This crisis happened partly because of demonetisation.

Flush with funds from demonetisation, banks were reluctant to lend to corporates, and corporates were reluctant to borrow, thanks to regulatory uncertainty. Banks stepped up their exposure to NBFCs.

But NBFCs are now seeing a rise in bad loans thanks to the slowdown in real estate. Now, this, in turn, is causing a credit crunch in the automobiles sector. The government should have foreseen the risk in NBFCs. Raghuram Rajan had warned bad loans risk in Mudra schemes and MSMEs, going forward.

8. Keeping inflation too low 

The Modi government’s policy has been good politics with bad economics. They have been reluctant to put money in the hands of rural India, measly with increases in minimum support prices or NREGS wages. Low inflation helps Modi win elections, but it comes at the cost of reduced purchasing power and low demand. People are neither saving nor spending — because their incomes aren’t going up.

9. Not making disinvestment a priority 

One of the biggest economic reforms India needs is disinvestment of white elephants – that are the many public sector units. Many of them keep borrowing from public sector banks to make up for their losses. This concentrates the use of capital in unproductive assets.

Unlike Atal Bihari Vajpayee, Modi hasn’t made disinvestment a priority. There’s lip service, and some jugglery, but no real intent. If the Modi way is to revive PSUs rather than sell them, that hasn’t been happening either. In fact, prized PSUs have been going south.


Also read: Maximum schemes, minimum welfare: How the Modi govt fell into the same trap as UPA


10. Valuing bureaucrats over economists 

Much of Modi’s poor leadership of the Indian economy comes from his disdain for economists and experts.

“Harvard versus hard work,” as he defined the binary. Not just inconvenient liberals like Raghuram Rajan, but even supposedly Right-wing economists like Arvind Panagariya haven’t been able to work with Modi, who perhaps thinks he knows economics better than anyone else.

Modi relies on bureaucrats because they are hard-working yes men. He’s installed one such as the governor of the Reserve Bank of India. The result of relying on bureaucrats is a complicated GST, hare-brained ideas like angel tax on start-ups and borrowing money in foreign currency bonds.

11. Commanding heights mindset

Modi’s reliance on bureaucrats is in tune with his command and control mindset towards the economy. His way of looking at the economy is thus similar to Indira Gandhi’s “commanding heights” nonsense. The government needs to be a facilitator of economic activity, smoothening out the edges. Instead, Modi sees himself as the CEO, who will tell various parts of the economy what they should be doing.

He promised “minimum government” but, as is typical of him, is delivering the opposite of what he promised.

12. Tax terrorism

Instead of relaxing tax rates or reforming tax laws to make them simpler, the Modi government has come to be known for “tax terrorism”. Once again, Indira Gandhi would be proud. Faced with revenue shortfall and fiscal deficit constraints, the government wants to extract tax out of an economy that is going through a crippling slowdown. Hence the tax terrorism.


Also read: Govt bailouts are a moral hazard, Chief Economic Adviser Krishnamurthy Subramanian says


13. Fudging data 

Since Modi decided to put his political interests above national interest, his government took to data fudging. No one today believes the Modi government’s GDP growth rate figure. It is laughable to claim the Indian economy grew at 7.1 per cent in the demonetisation year. The Modi government’s own former chief economic advisor says the GDP is overestimated by about 2.5 percentage points.

14. Living in denial 

The data fudging is in line with living in denial. Anyone pointing out the structural slowdown in the economy is a “professional pessimist”. A report showing the unemployment rate as highest in the last 45 years was suppressed.

The first step to solving a problem is to acknowledge it. It is only now that the government is beginning to acknowledge the problem.

15. Indifferent budget

NDA-4’s new Budget in July did nothing to spur confidence or revive the animal spirits of the economy. Instead of tax incentives, there were more taxes. The Modi government seems to be at sea with a huge economic crisis facing India. It is bereft of both ideas and ambition because propaganda can keep making them win elections anyway.

Views are personal.

Subscribe to our channels on YouTube & Telegram

Why news media is in crisis & How you can fix it

India needs free, fair, non-hyphenated and questioning journalism even more as it faces multiple crises.

But the news media is in a crisis of its own. There have been brutal layoffs and pay-cuts. The best of journalism is shrinking, yielding to crude prime-time spectacle.

ThePrint has the finest young reporters, columnists and editors working for it. Sustaining journalism of this quality needs smart and thinking people like you to pay for it. Whether you live in India or overseas, you can do it here.

Support Our Journalism

65 COMMENTS

  1. Blunders are a way of life with Narendra Modi – the Tea Vendor PM Of India – whose mother Was a dishwasher.He correlates his mother with Ho Chi Minh who was a dishwasher in London.

    Throughout Indian History – when men w/o pedigree,have ruled over India – they have destroyed India immediately thereafter.They all thought they were special,and from the grass roots.This is a apocalyptic trait peculiar to Hindoos.

    To hide over the “shame of their birth and upbringing” and the “vicious physical and mental torture” as children – they “gravitate to extreme forms of menial thought and cruelty” – ignoring all sage counsel – as they feel it is a sign of courage and fortitude,in the face of adversity and pressures (Like the Kashmir disaster).

    Some Samples – dindooohindoo

    Ashoka – Born out of wedlock to a dancer (who was not a Kshatriya),was of ugly features,mocked all his life by his brothers (born from wedlock).Net Result – Ashoka Killed all his family members,became a murderous savage – and then met a monk and became a Buddhist (easy kill for the monk).
    The Monk convinced him to set up a “Temple of Hell on Earth” (where insane and cruel forms of torture were witnessed by Ashoka and the Monk – what impact would that have had on Ashoka’s cranium).His defective DNA – both his children left India forever and his wife poisoned the roots of the Bodhee Tree.Ashoka beheaded 19000 Jain Monks in 1 Day.

    Ade Shankara – Was called a Bastard by Madhavacharya.His mother was a Brahmin – and his father was unknown.All his life he suffered taunts from the lower castes and Kshatriyas w.r.t. his birth.Net Result – he immersed himself in religion and managed to enter the dead body of a king to have sex with the wife of the dead king.This man vented his entire hate of women,Lower castes,harlots. Kshatriyas etc. into his “magnum opus on Hindooism” – which treated women worse than aninals,and Dalits as “not even sentients”.His magnum opus was “used to destroy Buddhists and Buddhism” (as his opus was a copy and paste pf Pali scriptures),cement caste and Brahminism – which led to the Mughal invasions and rampages.If the Dalits.in the millions,had stood up against the Mughals – history would have been just the reverse.But the Dalits did not care – as the Mughals came to redeem the Dalits , Devdasis and Hindoo women

    The Blunders of the Chaiwala – which you will not read in the media – as the media is owned by Banias and operated by Brahmins – a race of servile slaves and cowards.

    The Chronicles of Narendra (Narnia Chaiwala) Modi

    Make in India = Total Disaster. The man has destroyed the atchitecture of manufacturing.It is no surprise – as Rama used apes tomake a bridge to Lanka.Rama knew the worth of Indians
    Exports from India = Total Disaster.So long as PRC exists – and the sea exists (with the commercial principles of Archimedes,for a ship), there is nothing which an Indian can make – which cannot be sold faster,cheaper,better and at a better quality by the PRC.The PRC conquered India 2000 years ago – via the Yueh Chi Tribe (who were kicked out of Imperial China).Indians excel only in making and cleaning toilets – which unfortunately cannot be exported – as Bill Gates is making tolets in Africa
    Defense Manufacturing in India = Total Disaster.Pakistan is exporting JF to East Asia and West Asia and Africa and has got orders from Malaysia – and the Hindoos are still struggling to make the Arjuna – MBT .Arjuna was a impotent,coward and a eunuch – as per the Mahabharata ! Touche ! Arjuna – was “cursed by Urvashi “,to be an “impotent and a eunuch”
    The Mahabharata, Book 3: Vana Parva: Indralokagamana Parva: Section XLVI
    O Partha, thou shalt have to pass thy time among females unregarded, and as a dancer, and “destitute of manhood and scorned as a eunuch
    Demonetisation = Total Disaster.The man has wiped out the SME sector FOREVER.That was the aim.The Ego Trip was to Monetise the Grey economy (to bull shit at G-7,via a higher GDP,and to shift the unorganised sector to Ambani and Company)
    GST = Disaster for SME and Unorganised sector.The man has wiped out the SME sector FOREVER. Now the scams will start
    Space = Disaster.ISRO Chandrayaan has doomed all hopes.The problem of the Hindoo – 1 low brain ASAT hit and they start dreaming and jay walking.All the effect of Gau Maut-ram
    Employment = Disaster.Destruction of all SME and Unorganised Jobs – FOREVER.
    IAF = Disaster.IAF completely destroyed by the PAF.The IAF took the advice of Modi.They did not send the best fighter jets against the PAF – Why ? How did 6 PAF – F-16s cross the Indian ADS (in daylight) and almost kill the Indian Army Chief and GOC-in-C Northern Command (and all escaped the ADS on the way back and the ADS shit down its own Chopper)
    Banking = Doomed.NPA is at least 400 Billion USD in the organised sector – RBI is defrauding the nation by hiding and lying.MUDRA loans are 150 Billion USD of which at least 40% will disappear.Then there is the informal banking disaster (NBFC/Chit Funds etc.).

    It is a Vedic Black Hole.

    To hide the abovesaid Vedic Black Hole – the Chaiwala has started the Kashmir Disaster.This is, of course, the crowning glory.

  2. To be fair to all neither Modi or Congress could do much to fix the India which is indeed a very complex entity . The author has at least summed up the key issues facing the nation and in a free world we have to respect other people’s views . Modi is at least acting and taking decisions rather than helplessly presiding over a mess like Manmohan Singh for two terms and he could do a lot and he knew how to fix the economy but for is timid nature.

    The real root cause of our problems lies in our governance structure that both NDA and UPA could not fix. In most developed countries the developmental institutions are decentralised and run and controlled by people at the grass root level where the accountability and responsibility flows downwards to people. England / Europe / USA have their developmental work starting at county level and decentralised where the people can influence these institutions. The Central and Federal Government looks after defence and foreign policy and regulatory issues mainly. British Government structures ” Revenue department ” which is run in command and control style to rule a slave nation but ” Free India ” adopted the same structure of Revenue department like Secretary / Deputy Secretary / Collector / Patwari etc placed on ” Health” ” Education ” ” Agriculture ” ” Industry ” Banking and so on are run by Babus IAS / IPS / IRS who have for convenience and connivance with politicians become a Mafia like structure that is very difficult to dismantle for Modi or anyone else . We have to make structural changes in the design of governance processes and get rid of this Babu / Politician nexus that have no linkages to the public. Fixing economy etc are much smaller issues if a organisation design is appropriate to the needs of nation.

  3. Thuglak Editor Late Cho Ramaswamy used to say that his magazine is like a X-ray machine.
    The Author has reflected the same.
    My leader Modiji never met the press in open session.
    Instead he was talking thru AIR!!!
    BJP is in power because of all the misdeeds of UPA.

    You go to a doctor or mechanic to fix your immediate problem.

    Like that People voted for NDA
    The Reality and statistics are otherwise on economy.
    This govt introduced lateral entry but behold a Governor of RBI is as IAS not a economist.
    Even Dr Swamy is on the same page on encomium situation.

  4. THE ARTICLE IS JUST SUPERB AND CORRECT. IT HAS HIT THE NAILBON THE HEAD. NO WONDER THE PRICE OF GOLD IS SHOOTING NORTHWARDS BECAUSE OF THE UNCERTAINTY IN THE MARKET IN INDIA AND AROUND THE WORLD. GOD HELP US AND PROTECT US.

  5. Modi is just piece of Parle biscuit which is going to lay off 10,000 employees.

    In 2050, India will be highly unemployeed nation. The commentors here, they will be crying after few years after losing there jobs.

  6. Running an country is not like writing an article, where one can put down what one thinks in a matter of hours or even days, and more so when one wants to write about what is wrong. It is no surprise that one can only see the negativity, because that is the culture which has prevailed since indepence, basically because of the self serving and corrupt leadership we had across dispensations. Impeccable personal integrity was never seen so to accept it will take time. Unless you work you will not make mistakes and people will understand those as genuine mistakes with a corrective action to follow only and only if you enjoy that Impeccable personal integrity. We seem to have seen that in the last elections in spite of the 14 acts of omission and commission listed above.
    Opposition is a must but it will be credible only if it has an alternate solution to what is being opposed. Starting with Congress there appears to be this realisation coming in all the opposition. “Do not demonise Modi” will surely help us evolve a sensible constructive and credible opposition which Modi will fear. Do not expect him to pay heed to booing, screaming, and well descending legislators or the so called elders in miniscule numbers. All they are doing is strengthening him for the next election. Problem is the half educated entitled leaderships, not knowing how to counter the dispensation other than heaping abuse .

    ,
    ,

  7. It is a known fact that Indian like Shivam ViJ are good in Giving opinions as to how to run the country. It is high time they shut their mouths and Di some constructive criticism. Where the f***k were they went MMS + Dynastists we’re messing the country. If someone is trying to clean up the mess, they should elaborate on that other than find fault.

    • that is the prroblem rather than accepting criticism bhakts want to know why upa 2 was not criticized. can we focus on what is in our hand and realize that our economy is being f*cked left right and centre by this rss chaps

  8. It is good to blame, provided you are a master with zero flaws. The author blaming Modi of commission is without a proof. Again, if its case of omission, what was that omitted; if so whether opposition parties did their duty. So, when the crux of article, as described by its title, is questionable, the detailed points lack clarity & truth. The economic crisis is in it’s nascent stage and we are very well aware of the efforts taken by Government to address it. If the author intended to advise measures to sort out lacunas, the same would have been accepted based on its merits. Whereas, the article is a billboard of blames, originated from Modi Phobia. So thePrint is expected to utilize the freedom of Press with credible and unbiased authors.

    • I dont understand, this guy believes IAS officers are uneducated or what? I don’t think he understands the process of becoming a bureaucrat.

  9. What I see is that people who are at variance with what Vij says do not counter his arguments with logic of their own. Instead, they resort to personal abuse. An informed debate is just not possible and, therefore, we are in the situation that we are in. It is said that we get the government we deserve. It looks increasingly like we deserve this government. Now deal with it.

  10. Govt should start to reduce expenses in all ministries at all levels. This will serve the purpose soonest. Economic crisis will be controlled.

  11. This “wiz-Alias Vij” is a either foolish or a leftist or both! I read the first few lines to understand all he had to say. His contention YES scamgress made a mess of the economy in 70 yrs but why didn’t Modi fix it? Yes scamgress doled out loans indiscriminately but why didn’t Modi clean up the NPAs earlier? Yes scamgress brought the economy to a grinding halt but why didn’t Modi take the steps to make India grow at 8-10% ? Need I saw more about the empirical or logical robustness of his analysis? He’s unaware that since the beginning of the NEP India’s grow th had employment less/ displacing growth.

  12. This course is Emergency 201 at IIM Absurd.
    we are doing Lecture 9 Living in Denial ….. then & now.

    Tutor :— Jst Anoder Ecnomist

  13. Are we to prove that we are good as Nation in criticising ? Is it not time to direct solutions? Yes we were promised Achhe Din but so called economic mess in financial sector needed time like cleaning the stables. Now there are two sides of the balance as I often see . One is Subsidising Agriculture. Loan waiver, higher buyback … Crop insurance.. . Else did we not face tragical instances from our Kisans compelling theme to take extreme steps?
    Even US highly subsidises Agriculture Ditto France..Then US lectures us on High Agriculture Taxes. Their entire output is highly energy consuming which ideally would have put their Apples Nuts .m Soya. Etc beyond reach but thanks to high subsidies on their Own yet lectures India.. to open up.
    A solution was attempted by Manmohan Singh allowing Mutibrand Retail including Agriculture with Adequate Safeguards. Pity we all objected including UPA partners and Opposition then. This One single measure would have propelled demand , provided Money to cultivators , ensured fair commodity prices while retail agro prices would have been not more than procurement prices. Ensured Global standard Supply Chain , Storage , Incentivised Demand for Commercial Vehicles , generated more Road and other taxes for Improvement of Infrastructure. Setting off a Demand Chain .
    What pains us Kirana Shops (Traditional Papa Moma Shops) we didn’t listen that they do coexist along with Multi Brand Retail. But we cried wolf till today we shy away from Allowing 100% FDI in Multi Brand Retail. Do Urgently allow it and we can do away with Agriculture Subsidies and Allow Our Cultivators the Dignity they Deserve, not bail outs waivers ..
    The Tiger in India’s Economy will Roar and The Elephant will Run also.
    Vandemataram

  14. नव्हतीच कोणा आवडली, कधी मंदी
    सर्वांनाच वाटे, ती काळी कुरूप बेंद्री
    भोग आणेल ती, सर्व माथी फेंद्री
    कोण कृत्यामुळे,आली आq4त्ता अगदी

    येणार कळले होते होता नोटबंदी
    पण भारतीय सारे, अक्कलशून्य नंदी
    पुन्हा पुन्हा निवडून आणती जे संबंधी
    काश्मीर नाटय पुरवू न शके चांदी

    तरुण जे फिरती बेकार स्वच्छंदी
    धुंडाळती मारेमारे नौकरीची सुसंधी
    मज्जा पहाता, चिदंबरम घरात धाडी
    पण पैसे हवे,पाहण्या, लज्जेची चिंधडी
    Google
    Suhas G Patwardhan
    Or
    सुहास ग पटवर्धन

    • Since our FM who introduced GST was a lawyer by profession, he wanted to ensure more work for his professional brethren. So a complex GST, with several rates, cesses, exemptions etc. etc. Simplicity be damned.

  15. PRINT admits the article is sponsored.Naturally it will be PARTIAL to one .
    mr.Nirav Modi ,Mallayya and many others looted Banks when Mr.Raghuram Rajan’s nominees were directors in those Banks.What did they do to stop or arrest the misappropriation.If a periodical review was done the “fraud ” could have been found out.
    There were reports Mallayya was given additional Loan/Bank Guarantee byDENA BANK when the account was NPA.
    If Govt takes time to INVESTIGATE major frauds by competent financial /banking experts they will be able to fix responsibility for lapses.
    Of course the first task is to bring back banks to Normalcy.

  16. People have been frightened into holding their money tight. Everyday a new rule, new show, people are afraid what is theirs can be taken away. A bird in hand is worth two in a bush. They rather have whatever money they have than invest or spend. That one factor is enough to send economy downwards. If they don’t want to buy ₹5/- Parle biscuits, is something wrong with them or wrong with their thinking? Or it’s climate of fear, and uncertainty that makes them pull in wards. This feelings apply to all sections of people….in order to move forward don’t shake the boat to hard, it will lead to sinking or people jumping overboard

    • Don’t worry.Now that Article 370 is revoked, Chidambaram in custody, Jyaram Remesh, Abhidhek sSghvi, Sathrughnan Sinha and othere recanting, every thing will turn around.From now on it will be boom boom boom

  17. Looking at last few articles of Shivam Vij, I have a genuine doubt. Is ‘Pappu’ masquerading as ‘Shivam Vij’.

    If so, Jairam Ramesh & AM Singhvi have spoken out already. ie ‘Demonising Modi does not help’. !!

    • I value The Print and Shekhar for some of its’ informative articles. ‘The Print’ deserves a much better author than ‘Shivam Vij’.

      Please just do not publish articles as a space-filler and just to represent other side of view which lack real in-depth analysis.

        • When so-called journalists forget their duty to not go personal and start venting out nonsense, a wake up call is much needed.
          Our Bhakti is towards honest journalism. Vij’s single minded obsession towards a certain person makes him undeserving.

  18. Low inflation erodes purchasing power? Are you feeling alright? Go read class 12th ncert macroeconomics. alternatively, learning the difference between the ‘real’ and ‘nominal’ sides of the economy would be a good place to start. If only somebody would pay me to peddle voodoo economic theories from the comfort of my couch. Also, what exactly are your credentials? How did you become this columnist you claim to be and what is it about economics that you know that a grade 10th kid doesn’t?

    • Thanks for reading Shivam Vij columns.. I don’t. I just read the comments which are more enjoyable and enlightening. Your comment at the top proves the point. 👍

    • I could not agree more with you. Every idiot is posing to be an economist. Sometimes back Yogesh Yadav and Sagarika too too tried being an economist and a scholar of religion .

    • Didi, What he is saying is there is no increase in income accross the segments which has reduced purchase power for example, epic slowdown of auto industry due to record low sales. I suggest you too start studying 12th Economic and Commerce subjects.

  19. All points accepted except the one of inflation. To understand Modinomics, it is important to understand his psyche. Submitting to liberalisation and globalisation would imply submitting to very large MNCs, many of which are really powerful, and in many instances, ethically deviant. Modi – a leader who loves his larger than life persona – may be reluctant to submit to the whims and practices of foreign corporations. The remedy could lie in hiring a professional FM and empowering him. However, Modi has consistently shown that he is not very inclined towards working with empowerment hungry talent. The most unfortunate aspect of Modinomics has been the inability to translate pithy economical missions into realities, what Shivam Vij is terming as “Gimmicks as policy”.

    • Liberalisation and globalisation would allow India, over time, to create its own successful multinationals. Consider the success of India’s IT sector. If you were buying a food or healthcare product for your family, would you choose a respected multinational or Baba Ramdev’s Patanjali ?

      • I hear you. I agree with you. But the government needs to give corporate governance special attention. It should get out of business, and just create and manage the economic landscape – for start-ups, SMEs and large Corps – without fear, without favour.

      • This article is another attempt of raking up the same issues, like GST, demonutisation etc., And keep it burning and attribute these to economic issues. Like they say, repeating lies many times they want to make people to feel as if it is the truth, though the people of India understood and gave a resounding mandate again to Modi. These columnist have neither any qualifications nor any feet on the ground and keep blah blahing by taking money from vested interest groups..Sad that instead of giving suggestions or solutions they take the easy path of criticisms, where they do not have to take any responsibility.

  20. When UPA was voted out even the people didn’t know about economics. High inflation was various factors including demand supply. Several measures were stalled by some of its own members and in particular by opposition in particular by BJP. GST in particular for Modi was attack on financial federalism. BJP won as people did want to give third term to UPA and opted for BJP by giving just enough margin. Five years were fettered away and now its here compounded with poor economic slow down across globe

  21. Pressing the Mute button on the media. So many smart business journalists in India. Everyone saw the boulders and the potholes which became craters on India’s road to prosperity. Not permitted to raise flags of caution in good time, make workable, practical suggestions. Laughable when a senior journalist, trying to square the circle to reaching five trillion dollars in five years, says eight per cent actual growth plus four per cent inflation will get us there. When in living memory did the INR appreciate 4% a year for five years against the USD. 2. It will take ages to clear up the mess.

  22. Someone should ask Rajiv Kumar why India is facing a situation where the entire financial system is under threat, to an extent not seen in the last seventy years. Niti Aayog – like NORAD which keeps North America safe from incoming ICBMs – is meant to gaze further into the future than the rest of us, see points of strain and stress in the economy before differences become disputes. Not brushing under the carpet Early Warning Signals. If memory serves one right, he was instrumental in holding back vital NSSO employment data. Akbar chose his Nav Ratnas well.

  23. After so many badly written opinion pieces the author has finally Hit the nail on the head. In fact this article is bang on targget. Even if the effects of GST and demonetisation are debatable, what is undeniable is that this is a ‘socialist ‘ government. Led by a PM who believes that government knows best and believes in the same old mai-baap philosophy of doles, subsidies and hand outs. A government that not only wants to occupy the commanding heights of the economy but of every aspect of the Adam aadmi’s life. A consequence is increased interference of the bureaucracy via Aadhar, Jan Dhan, KYC etc. rather then ease of living. A government that wants to run businesses, banks, temples, NGOs, markets and what have you. For all the disdain of Nehru, this is India’s most Nehruvian government post Nehru.

  24. Basically our country needs educated people to govern and polices shouldn’t be tested on economy there has to be a channel in the constitution that qualitative exams have to be conducted to all the politicians so they think tank objectives puts our country in to back benches any ministers choosen took go under a accessible format of exam for there presence in our countries reforms or else’s we all suffer voting an useless politicians who are not aware of the pros and consequences which affects our own country all the best possible qualitative educated people’s are needed so any ministers choosen should qualify the necessary objectives so fraudulent activity, corruption, etc so o only answer is one nation one nationality called Indian no reservations so true merrit will flurish jaihind

  25. Theprint and this contributing editor are known Modi baitors. This despondency from the author is expected. Economy may have problems and not ruled out. Modi has time to rectify and he will. People trust him. Within two months astounding issues resolved. P Chidambaram is arrested. More cleansing would follow. Economy would be robust.

  26. You missed one important issue, Lack of talent. Neither Modi can attract nor keep talent. His teams biggest talent asset is winning election by hook or crook. He has no idea how a nation is built.
    Demonetization was the biggest black money conversion exercise by the Ruling BJP and that’s how part of that money is paid back by ‘unknown’ beneficiaries to BJP through electoral bonds.

  27. There is a psychological factor too: the air of distrust that pervades the whole country. People are not happy.

  28. The root cause is Socialism. No guts to privatize government banks for the sake of farm loan waivers and other socialist evils.

    No guts to reform land, labour and capital for fear of wrath from socialists and communists.

    Overtaxing businesses to fund freebies subsidies loan waivers etc.

    No guts to implement low rate single slab GST for fear of being unable to fund socialist welfare schemes.

    No guts to privatize railways, air India and other public sector units for fear of wrath from socialists and communists.

  29. we the people derisive it we will have to reap the seeds we have sowed – it was a misjudgement of the collective consciousness- the love affair continues.

Comments are closed.

Most Popular

×