New Delhi: The Congress attacked the Narendra Modi government Tuesday over the state of the economy. The party said that the government must acknowledge the ‘acute slowdown’ and move beyond piecemeal approach to put the ‘economic mess’ in order.
The opposition party’s sharp attack on the government came over a media report, which cited Reserve Bank of India (RBI data), to claim that the overall financial flows to the commercial sector have declined sharply, by around 88 per cent.
Congress spokesperson Supriya Shrinate said the RBI report cited points to an ‘acute economic slowdown’. Between April 2019 and September 2019, credit has collapsed, which means economic activity has stalled, pointed out Supriya Shrinate.
“We would want the data to be mulled upon. We need to understand it. In the last one year, fund flow to the commercial sector is down by 88 per cent, according to a new RBI data. Last year, this figure was at Rs 7.36 lakh crore now it is around Rs 91,000 crore,” Shrinate said.
“This is happening despite RBI cut repo rates. Repo rate is down by 1.35 per cent from January to now. Despite that people are not taking credit because they’re not convinced that they can do economic activity with this credit because people are insecure about their jobs,” Supriya Shrinate pointed out.
“The piecemeal approach continues but the government does not have a comprehensive solution to put the economic mess in order,” added the Congress spokesperson.
According to Shrinate the fault lines are very vivid in the Indian economy but there doesn’t seem to be a comprehensive approach to resolving it.
“The RBI conducted a consumer confidence survey it is at a six-year low in September. People’s faith in the Indian economy plummeted in the month of September and over 50 per cent of the people are convinced that jobs will no longer be created,” asserted Shrinate.
“You need to acknowledge the problem, you need to accept that we are in an acute slowdown and then you need to have a comprehensive solution, you need to have bold reforms, you need to justify your political mandate,” Shrinate added.
PTI