Prime Minister Narendra Modi was as eloquent as ever in taking on the Opposition and his critics even as he admitted that growth has fallen (“Growth has fallen, but govt. can reverse trend, says PM”, Oct. 5). On the other hand, the Reserve Bank of India presented a gloomy picture and batted for strict fiscal discipline (“RBI holds interest rates, warns against fiscal laxity”, Oct. 5). It cautioned against the reported plan of the government to impart fiscal stimulus to provide a fillip to the economy, which is not advisable given the astronomical deficits being encountered by the State and Central governments. It also found fault with the implementation of the Goods and Services Tax, but I think some allowance should be given as GST is a new move and this government is not averse to rectifications. However, it is not appropriate on the government’s part to continue to defend demonetisation as a slump in growth rate is directly proportional to a great extent to its after-effects. Mr. Modi retains the goodwill of most of India but he should not get carried away by his invincibility. Time is ticking for the government to bring the economy back on track, but at an alarming speed.
V. Subramanian,
Chennai
Small businesses are struggling, even shutting down, after a major overhaul to both the country’s currency and sales tax system. Policymakers need to act now. Without a stimulus of sufficient magnitude, the economy is likely to see a decline in growth, or even a formal recession, leading to higher unemployment, declining or stagnant wages, and a host of other economic problems. Combined with a broader unravelling of credit markets, we can expect to see continued spillovers into other areas of the economy, most importantly the labour market.
K.M.K. Murthy,
Secunderabad
It is not unusual to see negative results immediately after a reform. Indira Gandhi as Prime Minister had nationalised banks, but did the country get good results overnight without any problems? Her government’s slogan was ‘Garibi Hatao’ but has poverty left the country?
J.P. Reddy,
Nalgonda
The debate on the economy has failed to tackle a key question: If demonetisation and GST have both been suicidal for the economy, why did the Prime Minister initiate these steps? The middle class is said to be the BJP’s core constituency. Anecdotal evidence suggests that it is deeply disappointed and even angry with the Prime Minister. WhatsApp groups that had elevated Mr. Modi to a demigod status are now brimming with indignation.
R. Sivakumar,
Chennai
While it is good that Mr. Modi has admitted to an economic slowdown, much of his talk sounds like bravado. His slogan, “No to pessimism”, is not a talisman that can wish away the slump in the economy nor can his oft-repeated slogan “no short-term benefits at the cost of long-term gains” assuage the hardship of the common man already harassed by rising prices due to the GST implementation fiasco. We expect Mr. Modi to chalk out a slew of concrete steps instead of chest-thumping. It is disappointing that he could not come out with any such plan. Has he run out of ideas?
R.V. Easwar,
New Delhi
Instead of finding fault with the critics, the Prime Minister should first acknowledge that demonetisation is a failure and that GST was introduced when the economy was in a bad phase. The Prime Minister should apologise to the people for demonetisation. Many people have died standing in queues, and vendors and small industrialists have been crushed. They were limping back to normalcy before GST pushed them back again. What is the road map for recovery? Nothing. I am happy that opposition voices have started within the BJP.
T. Anand Raj,
Chennai
It was prudent of Mr. Modi to have stressed that the government will focus on structural reforms rather than give out doles to win accolades. Whatever his detractors may say, Mr. Modi appeared forthright and oozed confidence in his address.
C.G. Kuriakose,
Kothamangalam
