Joblessness is zooming, inflation is at six-year high led by food inflation, exports are down further, industrial production is stagnant and investment is at a standstill.
In the last six months or so, the Modi government has supposedly been paying close attention to the sinking economy, with a flurry of meetings, announcements of freebies to corporates, fervent assurances to markets and budget shenanigans to supposedly keep the deficit in check and make foreign investors happy. What is the result of all this huffing and puffing? Zero, as far as one can make out from the numbers. And, worse, if one ventures out and talks to people in distress.
Combined with rampant joblessness, unbridled price rise is a double whammy for the people. But the Modi government has so far been unable to check either of them. In fact, all other indicators of the economy’s health are in the red: exports have fallen for the sixth month in row and imports for the tenth month; bank credit growth decelerated from 14.8% at end January 2019 to 7.1% in January this year; and the index of industrial production remained more or less stagnant. This is the bottom line for all the “efforts” being made by the government.
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