New Delhi, Jun 24: Reacting to the resignation of Viral Acharya as Deputy Governor of the Reserve Bank of India six months before the end of his tenure, the Congress on Monday said there is a culture of disrespecting expertise, as also talent under the current BJP rule.
‘’RBI Deputy Guv, Viral Acharya adds his name to the long list of experts who attempted to show the ‘Mirror of Truth’ to the BJP regime. 4 Economic Advisors, 2 RBI Governors & a NitiAayog VC has resigned earlier! This only proves that under the current BJP regime, there is a culture of disrespecting expertise, as also talent. BJP Govt only needs ‘Yes Men’ & ‘Puppets’- Not ‘Experts Wizards’!,’’AICC media incharge Randeep Surjewala said in a statement.
Mr Surjewala said that even though the BJP had got a renewed mandate, India’s economic woes under its regime continued to simmer.
‘’The tremors of the massive mishandling of the economy in the past five years under a government which mastered the art of disruptive economic policy measures are still being felt. As the country is staring at a below average monsoon and reeling under a severe water crisis, private investment in India is also taking a huge hit, thereby deepening the economic woes of our people,’’ Mr Surjewala said.
Mr Surjewala said the list of Wilful Defaulters have gone to 8,582 in 2018-19 as per the information given by the government in the Lok Sabha.
‘’Wilful defaults have soared by Rs 121,700 crore from just Rs 39,504 crore in March 2014, according to figures published by Transunion Cibil, a credit information company. India’s largest Public Sector Bank- State Bank of India (SBI) alone accounted for Rs 39,471 crore of wilful defaults as of December 2018. This alone is a surge of a whopping 308 per cent,’’he said.
Pointing out that industry in India was suffering due to fall in investment, he said,’’a year after Lehman moment for Economy, wealth of more than 1 Trillion Dollars (1,000,000,000,000) of 11 firms has been eroded, as ordinary investors suffer. Rollover risks for outstanding borrowings are rising as these companies could only raise less than one-seventh of debt they did in the year before. Founders of most of these companies are selling businesses to tide over the crunch.
Even the cost of funding for non-bank lenders has gone up by 50 basis points. Investors are also scrutinizing Indian banks that have loan exposure to companies with stressed debt. Not only is 1 trillion Dollars ($14.4 Billion) of 11 firms wiped out, cracks of the credit crunch spread far & wide. A major challenge is refinance of outstanding bonds of 2.03 trillion Dollars. (UNI)