The Lok Gathbandhan Party (LGP) today said the NDA government’s celebrations over 7.2% GDP growth in the last three months of 2017 is entirely misplaced, as the Indian economy is yet to come out of the morass. The party said the country is still faced with such innumerable issues that have not been addressed properly.
The spokesperson of the party said here on Monday that the BJP leaders are euphoric over F/Y 2017-18’s third quarter 7.2 percent growth as a major step forward but its sustainability appears to be remote because of continued sluggish industrial and farm sector growth. The spokesperson said 63% shortfall in winter rains will also adversely affect wheat and other Rabi crops production and total outlay in the country.
The spokesperson said that slowdown in the country’s GDP growth has largely been self-inflicted because of the bad debt crisis, directionless decision to ban high denomination currency notes in November 2016 and poorly planned rollout of new goods and services tax (GST). The spokesperson said all these factors have led to pushing the GDP growth well below 6%. The spokesperson said under the prevailing situation, to cheer for just one-quarter growth, while the responsible disruptive forces are still at play, is misplaced. The spokesperson said during the quarter referred to, the new investment proposals hit a 13-year low and there is hardly any hope of their revival in the near future. The LGP said the fiscal deficit is extremely troubling which would further make the GDP revival unsustainable. Pointing out that inflationary tendency continues unabated, the spokesperson said the recent increase in bank lending rates and a fallout of mega PNB scandal will also choke off the revival in private investment.
The spokesperson said 7% growth during only one quarter is not enough to speed up overall development and generate required employment opportunities. The spokesman said with this rate of growth the country will not be able to face the fast emerging challenges of unemployment, as a million job qualified and unqualified young people join job market every month. The LGP said there is an urgent need to correct the aberrations on economic and fiscal policies and take stringent measures to ensure honesty, transparency, and elimination of corruption to solve the problems of the teeming millions.