Economy in deep crisis; Govt clueless, silent, says Cong

Economy in deep crisis; Govt clueless, silent, says Cong

Agency News

New Delhi, Aug 23: Amid reports that the Indian economy is facing a huge crisis, the Congress on Friday lashed out at Narendra Modi-led Union government, saying that they are clueless about handling the situation, and the Prime Minister and the Finance Minister are silent.

Addressing mediapersons at AICC headquarters, Congress spokesperson Manish Tewari said that over three crore people are currently facing threat of becoming unemployed. "When you have the Indian economy enter its choppiest phase perhaps, the silence of the Prime Minister and the Finance Minister are deafening. All you see is deflection, politics of vendetta, undeclared emergency across the country", Mr Tewari said.

Referring to NITI Aayog Vice Chairman Rajiv Kumar's statement that the Indian economy is facing an unprecedented crisis and need urgent intervention by the government, the Congress spokesperson said that "he deserves to be congratulated for his confession. On Thursday, Mr Rajiv Kumar had reportedly said that the country has not faced such a liquidity situation in the last 70 years, and that the entire financial sector is up in a churn and nobody trusts the other.

"This confession requires a slight amendment. It’s not just the financial sector, it’s the Indian economy. Current situation in the Indian economy is unprecedented, something of the sort has not been seen in the past 70 years", Mr Tewari added. "The BJP-NDA government would like us to believe that this is because of Pt Jawaharlal Nehru, unfortunately that is not the case. This is the making of the NDA-BJP government in the past five years", Mr Tewari said.

He stated that every sector of economy is under grave stress and added that the "textile industry has been putting out advertisements on a daily basis for past one week, explaining that this is perhaps the worst period which the textile industry has seen in the past seven decades"

"Tea industry is facing an unprecedented crisis, even inner-wear industry. Greenspan, ex chairperson of Federal Reserve in USA, created Greenspan index, which premised that if there is a crisis in inner-wear industry, means the economy is on the brink of implosion", he added.

He also referred to the reports that biscuit manufacturers ParleG's announcement that the company would have to layoff 10,000 employees.

"The rupee as of today morning crashed to 72 against the dollar, making it the worst performing currency in Asia", the Congress spokesperson said.

He also said that the crisis in the automobile sector is very well documented and added that " 3,50,000 people stand retrenched in the auto sector. Maruti Suzuki alone has cut its production by 25% for the sixth consecutive month in a row".

"Yesterday alone, FIIs pulled out 902.99 crores from Indian equity market, it usually happens that money goes from debt market but it very rarely happens that money is pulled out of equity market, which index the long term stability of an economy", Mr Tewari charged.

The Congress spokesperson said that the growth of the Indian economy has slowed down to 5.7 per cent and said that it was the worst performance in the past five years.
"There is a shadow banking crisis because of insecurities, private consumption is at a historic low, private consumption constitutes 60 per cent of the GDP", he added. The primary reason for this is that the government does not have a clue as to how they will handle this crisis in the Indian economy which is intensifying on a daily basis, Mr Tewari added.

Referring to Mr Rajiv Kumar's statement, former Congress president Rahul Gandhi had also criticised the government and said, "government’s own economic advisors have finally acknowledged what we cautioned for long - India’s economy is in a deep mess. Now, accept our solution and remonetise the economy, by putting money back in the hands of the needy & not the greedy". (UNI)