Letters

Economic troubles

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Despite various efforts from Central government to improve GDP numbers, the growth hits six-year low of 4.5% in the second quarter. Measures such as cut to corporate tax and announcement to merge banks are yet to bear fruits (“GDP growth plunges to 4.5%, lowest since 2012,” Nov. 30). The Union government cannot just paper over the cracks by increasing government spending to maintain GDP numbers which otherwise look much weaker. Agriculture, which is the primary sector of the Indian economy, contributes the least to the GDP but employs the most number of people. Unfortunately, this sector seems to be left out in the cold because of the lack of scientific methods. The government needs to pay heed to the farmers’ needs.

Vinayaka M.,

Bengaluru

The country’s lowest GDP growth in six years has set fears of a deepening slowdown in the economy. According to NITI Aayog’s estimate, India needs to grow at 12.4% nominal GDP rate over the next five years to reach the $5-trillion economy target, which is highly unlikely. The slowdown has been attributed to reduced household spending as demand is dwindling and companies are no longer hiring employees. Also, the growth in gross fixed capital formation, a key yardstick to assess investment activity, has plunged to 1% compared with 11.8% on year-on-year basis. The sharp decline in the second quarter should be a warning to Finance Minister Nirmala Sitharaman as large economies, when they lose momentum, take several years to get back on track. Even if India is not in an economic recession yet, the current slowdown has certainly set alarm bells, and hurts the country much.

R. Sivakumar,

Chennai

The plummeting GDP growth rate that fell to a low of 4.5% in the July-September quarter, the worst in six years, has set alarm bells ringing. The biggest shocker was nominal GDP growth, which stood at a decade-low of 6.1%. The manufacturing sector has contracted sharply, and economists fear that the worst isn’t over yet. With the economy in free fall and all calculations going wrong, one wonders how the government can realise its dreams of a $5-trillion target.

N.J. Ravi Chander,

Bengaluru

 

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Printable version | Dec 6, 2019 4:32:47 AM | https://www.thehindu.com/opinion/letters/economic-troubles/article30132546.ece

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