New Delhi, Sep 8 : On the completion of 100 days of the Narendra Modi government’s second tenure, Congress leader Kapil Sibal said Prime Minister is in complete denial that his economic policies including demonetisation is the root cause of the country’s economic crisis.
“Smriti Irani said PM Modi is a great economist but now I would like to ask inspite of having the best economist why our economy is in doldrums: GDP is 5%, banks NPAs increasing , workers are being laid, Auto industries have closed down production due to drop in sales, textile industries are in worst crisis and in real estate is in bad shape,”former union minister Sibal said.
The Congress party on Sunday criticised Prime Minister Narendra Modi’s policies for the economic crisis and sought answers from the government what strong steps they have taken so as to improve the lives of common man.
” People are witnessing Modi sponsored media, small traders are in problem, crime against women, no strategy in education,vendetta politics against political openents,misuse of CBI, ED and income tax and agencies are acting against where there is no evidence against Opposition, Kapil Sibal said.
Listing out the failures of Modi government within 100 days, Sibal said, “GDP slide for 5th straight quarter; a six year low at 5% from 8% a year ago; Private consumption spending slumped to an 18-quarter low, Gross Fixed Capital Formation (GFCF), a proxy for investment activity, grew a meagre 4 percent, Construction activity for April-June 2019 quarter had eased to 5.7 percent.”
“Auto sales have slumped to a near two-decade low, 350,000 workers laid off; closure of over 300 dealerships; Auto component maker Sundaram-Clayton Ltd announced that it would shut its Padi factory in Tamil Nadu for two days; Hero MotoCorp also announced the closure of its plants for four days; Bosch Ltd had also announced that it would temporarily stop production for a total of 13 days; Honda Motorcycle and Scooter India reportedly laid off about 700 contract workersp; Nissan might cut over 1,700 jobs in India; Mahindra & Mahindra retrenched about 1,500 temporary workers.,” Sibal said.
Sibal listed out major sectors that are witnessing retenchment and the factories are slowing production
• Parle: Parle, that serves largely to lower income groups and in the rural areas, laid off nearly one tenth of its workforce
Parle, that serves largely to lower income groups and in the rural areas, laid off nearly one tenth of its workforce
• Textile sector: Cotton yarn export fell by an average 34.6% since April this year, job loss of over 30 million people as one third of the spinning mills are not functioning to full capacity; upcoming crop of about 40 million bales worth Rs 80,000 crore may not find any buyer both in India as well as abroad, as the prices of Indian cotton are very high
• Gold Sector: Gold market in India is facing a business cut of more than 40% and this, they say, is due to the increase in the import duty on gold
• Real Estate: 450,263 units unsold in 8 major cities in the first half of 2019. Thousands laid off.
• “Unemployment at 8.2% according to CMIE: According to the Centre for Monitoring Indian Economy (CMIE), overall unemployment in India has now touched 8.2 per cent, with urban unemployment as high as 9.4 per cent,” he said.