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Resource centre on India's rural distress
 
 

Pronab Sen, former chief statistician of India and current programme director of the International Growth Centre's India Programme, interviewed by Kundan Pandey (Down to Earth)

-Down to Earth

Pronab Sen, former chief statistician of India and current programme director of the International Growth Centre’s India Programme, speaks to Kundan Pandey about how recent government policies have crippled the income of the poor and slowed the economy

* Kundan Pandey: Is there low demand in the economy?

Pronab Sen: The demand is not low. The crisis is that the demand is not growing. For a long time, people from lower income groups were earning more and moving into the higher income bracket. Their consumption was shifting along with their income growth. For the past two or two-and-a-half years, this process has stalled.

You still have the middle class and the upper-middle class families, but their numbers are not growing. The income of these families is growing but their demand has reached a saturation point as they have already acquired the major consumer goods.

Since last year, the problem has started hurting because the demand in the urban corporate sector has gone down. Rural India has also been reeling from it for a while, which has triggered widespread farmer protests.


Down to Earth, 31 October, 2019, please click here to read the entire interview.
 
Image Courtesy: Down to Earth