In an interview with Karan Thapar for The Wire, Sitaram Yechury, general secretary of the Communist Party of India (Marxist), criticises demonetisation and argues that it failed to achieve all the objectives that were promised by the government.
Analysis using Milton Friedman’s theory shows India’s GDP growth is likely to crawl back to its long-run level. However, we cannot deny the loss in interim GDP because of demonetisation.
All the gains that documents like the Economic Survey point to cannot hide the ugly reality about India’s social infrastructure, employment and human development.
From Janardhan Poojary to Crony Capitalism: India’s Bank Recap Must Be Accompanied by Further Reform
While there are several domestic and international examples of recapitalisation bonds having worked, none of them have prevented further NPAs from piling up.
Small and medium sized businesses across the country report tumbling sales, undermining job creation and damaging sentiment in industries crucial to Modi’s political powerbase.
Solutions involve either an immediate fiscal or monetary stabilisation policy, or pushing through further supply-side structural reforms.
The 5.7% figure, based largely on data from the corporate sector, does not capture the almost one-third of the economy hit by demonetisation and GST.
Opposition parties and leaders may or may not be able to cobble together a coherent counter-narrative, but citizens are beginning to take note of the abuse of public confidence and poll promises.
To restore confidence, better governance, rather than any additional fiscal push, is the need of the hour.
More than a fifth of large companies did not earn enough to pay interest on their loans and the pace of new loans fell to the lowest in more than six decades.
The GST’s complexities run the risk of derailing the service sector’s growth and even slowing India’s economic growth, according to experts.
The negative growth in overall investment in April-June also knocks the bottom out of the government’s oft repeated claims that India is attracting unprecedented FDI flows because of new policy measures.
Fund managers admit reforms are moving slowly, but think that India continues to be a good investment opportunity.
A safety net for rural areas, MGNREGA guarantees 100 days of paid, unskilled manual work every year to every rural household.