1. Economic Slowdown? Top industrialists back Modi, say economy firing on all cylinders

Economic Slowdown? Top industrialists back Modi, say economy firing on all cylinders

At a time when the Narendra Modi government is facing criticism from all sides, top industrialists choose to back his structural reforms agenda.

By: | Published: October 5, 2017 12:53 PM
Narendra Modi, PM Modi, GDP slowdown, reverse GDP slowdown, reverse GDP, PM Modi to reverse GDP slowdown, PM Modi lashes critics At a time when the Narendra Modi government is facing criticism from all sides, top industrialists choose to back his structural reforms agenda. (Image: PTI)

At a time when the Narendra Modi government is facing criticism for the economic growth slowdown from all sides — opposition, party-men, global rating agencies et al — top industrialists choose to back Prime Minister’s vision and suggest that the growth is going to accelerate in the second quarter of the financial year 2017-18.

Yesterday, both Prime Minister Narendra Modi and Finance Minister Arun Jaitley hit out at the critics saying that the government was committed to structural reforms and necessary steps were being taken to remove glitches. Narendra Modi said the centre was committed to reversing the setback to growth in the April-June quarter and that structural reforms were undertaken during the last three years, including demonetisation, Goods and Services Tax, and the Insolvency and Bankruptcy Code, would help the country step up into the next league.

Top industrialist Sunil Mittal backed Narendra Modi by saying that it is his job to create hope. He further said that the Indian economy is doing extremely well as compared to its global peers.

Head of the Godrej group, Adi Godrej also spoke in government’s defence and said that the economic growth rates fell due to GST destocking in June and will likely recover in the second quarter of FY18. “There was an economic slowdown in the month of June, and there’s a good explanation to that. Since in the GST, many rates were coming down, there was destocking in June.”

“Even if you look at the April-June quarter, the lower growth was mainly in the month of June. We should wait for July-September figures. GST collection has done well in July and August. I personally feel the economy is doing well,” Adi Godrej added.

Finance Minister Arun Jaitley in a television interview launched a veiled attack at senior BJP leader Yashwant Sinha and said, “Those who do not have broad shoulders to either take bold decisions or implement such landmark decisions, really can only sit on the sidelines and comment on it.”

“But at the end of the day, it’s our responsibility as the government to make sure that these decisions work, work well, and remove whatever glitches come in the way of these decisions,” Arun Jaitley added.

India’s economic growth slumped to a three-year low at 5.7% in the first quarter of the current fiscal year post demonetisation and switch to the GST regime. The Reserve Bank of India (RBI) reduced its growth forecast from 7.3% to 6.7%, but industrialists feel the policies by the Modi government is going to fetch results in the long term. Bain & Company India chairman Srivatsan Rajan told CNBC the Indian government has done ‘many good things’ in terms of economic reforms and the two moves – demonetisation and the GST — would be beneficial in long-term.

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  1. A
    Oct 5, 2017 at 8:22 pm
    Top Industrialists owe more than USD20Billion to nationalised bank.They tend to go weak in knees when asked about current economic issues.
    1. G
      Oct 5, 2017 at 6:31 pm
      We do not agree with top Industry leaders , that Economy is firing on all cylinders , we feel either they are wearing different glass or they might be deliberately ignorant on this front , for their selfish motto , or else PM has helped them to turn black money in to white , or else either PM or top Industry leaders are slaves of each others , and they are not loyal with their country? Can they Explain if economy is on right track why Unemployment and several youth are jobless ? Why Industry input down ? to remove people ? which is favorable to Industry ? Why Industry leaders not boosting GST Why they are begging with .Gadkari for BS norms and to make delay for Electric cars till 2030 on development grounds ? Why bank NPA's are down ? like u Industry leader Vijay Mallya deceived for country for 9000 cores he too like your brother as a defaulter Indian democracy is spoiled by Top Industry leaders, capitalistic by doing injustice to labors, giving bribe ,election funds 2 political party
      1. H
        Hari Hara Krishna Kumar
        Oct 5, 2017 at 5:21 pm
        Just because handful of people from the corporate world say that India is doing well doesn't make it the gospel truth. The real impact should be seen at the grass-root level. As a person from the middle class, I strongly feel that the economy is losing steam.
        1. S
          Oct 5, 2017 at 4:44 pm
          Top industrialists will of-course say that because its only their 'cylinders' that are firing , its is the small and micro industries and businesses that are actually suffering ... this also exposes the nexus between the present govt and big corporates.
          1. S
            Oct 5, 2017 at 4:37 pm
            Industrialists will support him as he is pro-corporate and he is not concerned about common man ,poor and the agriculturists
            1. Harvinder Maini
              Oct 5, 2017 at 2:35 pm
              In Punjabi there is one saying "CHAPPAR DA GWAH DADDU". It is fit for Modi and his financers
              1. I
                Oct 5, 2017 at 2:34 pm
                India must start semiconductor fabrication plants on major scale.
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