NEW DELHI: Today it becomes matter of serious concern that our economy has been declined. On this financial crunch the opposition political parties become vocal about the issue but the ruling party has so many valid points to counter these attacks. Besides these political hustle ground reality speaks another story.
India’s economy grew at its slowest pace in over six years in the June quarter following a sharp deceleration in consumer demand and tepid investment. The government has already announced a series of measures in the past week as part of its efforts to put growth back on track.
Crisil chief economist DK Joshi expressed his view over this situation and something must be taken on account to stimulate the economy. Although the steps that the government has taken recently will help, major reforms are still needed, he said.
Bibek Debroy, chairman of the Economic Advisory Council to the PM, stressed that those who seek to spread a message of gloom and doom are doing a great disservice. While former PM Manmohan Singh has expressed his concern over India’s growth slump.
Automobile sales, a barometer of the economy, have declined sharply in recent months, forcing production cuts and jobs losses. The government has offered incentives on auto purchases to help revive demand. Weak global economy and trade tensions have kept export growth muted.
Minister for Road Transport and Highways Nitin Gadkari said he would urge Finance Minister Nirmala Sitharaman to temporarily reduce GST rates on automobile to spur demand in the domestic market which is in the midst of a prolonged slowdown.
The Minister also said that he would request the government to consider some incentives on hybrid vehicles.
“We know what you are worrying about now…The government is also concerned. The slowdown has relation to employment potential as well as growth of the country…The FM is trying to find solutions”, said Gadkari.