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LATEST NEWS UPDATES | Make up for lost time -Puja Mehra

Make up for lost time -Puja Mehra

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published Published on Jun 3, 2019   modified Modified on Jun 3, 2019
-The Hindu

Narendra Modi must leverage the public trust voters have placed in him to get the economy on track

Prime Minister Narendra Modi’s election campaign, staying clear of bread-and-butter issues, successfully swayed voter attention away from economic hardships. Having won a thumping mandate, his government in its second tenure must now devote itself to a well-thought-out strategy for economic reforms.

The bad news

Official estimates released on Friday, the new government’s first day in office, show GDP growth slowed to a five-year low of 6.8% in 2018-19, even as the unemployment rate rose to a 45-year high of 6.1% in 2017-18. Agriculture gross value added (GVA) growth is estimated at negative 0.1% and manufacturing GVA growth at 3.1% in the January-March quarter.

The economy is struggling with an investments and a manufacturing slowdown, rural distress, unremunerative farm incomes, stagnating exports, a banking and financial mess and a jobs crisis. Sales figures from fast moving goods makers and continuing production cuts at car manufacturers confirm that consumption spending have slowed. The top economic priority for the new Modi government ought to be credible course correction in its attitude to policy — its formulation, articulation and the setting of goals.

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The Hindu, 3 June, 2019, https://www.thehindu.com/opinion/op-ed/make-up-for-lost-time/article27407025.ece?homepage=true


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