With the Indian economy reeling under an ongoing slowdown, veteran BJP leader Subramanian Swamy has slammed the Narendra Modi-government, calling for immediate actions to turn the economy around to a 10% GDP growth rate.
With the Indian economy reeling under an ongoing slowdown, veteran BJP leader Subramanian Swamy has slammed the Narendra Modi-government, calling for immediate actions to turn the economy around to a 10% GDP growth rate. Adding to his view that even an economic revival to 7% growth rate is not enough for India, Subramanian Swamy today said that the GDP can be turned around to a 10% growth rate only if the government implements bold incentivising reforms package. It be noted here that India’s economic growth fell to 5% in the fiscal first quarter April-June, its slowest in six years.
Growing at 10 per cent per year would not be easy if robust reforms are not announced by the government at the earliest, Subramanian Swamy added. Taking on the Ministry of Finance for inaction, he said that “every month of MoF (Ministry of Finance) spin” will make it progressively harder. Finance Minister Nirmala Sitharaman has been firefighting on the economic front since taking office, with damage control announcements every now and then. Subramanian Swamy’s comments come days after the Harvard-educated economist had said that the government needs both boldness and knowledge to revive the sagging economy to achieve Rs 5 trillion economy dream by 2024.
India’s current economy can be turned around to upward GDP growth 10% per year if Govt implements bold incentivising reform package. For every month of MoF spin it will become harder and harder. Time for action—Now!
— Subramanian Swamy (@Swamy39) September 4, 2019
In Q1 of the ongoing fiscal, the GDP grew by merely 5 per cent, down from 5.8 per cent in the previous quarter, according to the official data. The GDP growth for the first quarter of FY20 has been slowest in more than six years, largely on account of slow growth in the manufacturing sector. It was last in January-March quarter of 2012-13 that the economy had recorded the lowest growth.
It is, however, not the first time that the Harvard-educated economist has raised doubts over the economic policy being followed by the Prime Minister Narendra Modi-led government. Subramanian Swamy has been for some time pushing for his six-point economic reforms proposals. Earlier, last month he had given a five-point formula to boost growth in the slowing economy. The suggested measures ranged from scrapping personal income tax to printing more currency notes for boosting infrastructure sector.
“Five steps to rescue economy: 1. Abolish personal income tax 2. Reduce prime lending rate to 9% 3. Raise bank term deposit rate to 9% 4. Make corporate R&D & employees children education expenditure tax deductible 5. Print notes liberally for infrastructure construction”, Subramanian Swamy had then tweeted.
Unemployment is on rise and the agriculture is in dismal shape, he told BloombergQuint in a recent interview. Narendra Modi has just about six more months left with him till people start challenging him, he had said, adding that a 7% growth rate will not solve the government’s unemployment problem.