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J&K smokescreen won’t hide economic spasms

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For a change, no one in Prime Minister Narendra Modi’s government or in the ruling Bharatiya Janata Party (BJP) is talking about making India a $5 trillion economy by 2024 any longer. They have rightly fallen silent on the issue. The economy, which was a “sweet spot” during the first few years of Narendra Modi’s first term, had turned into a tight spot after the emphatic victory in the Lok Sabha elections this summer. No irony is intended because the BJP did not win the general election on its economic achievements. The news on the economic front, as it stands today, is pretty grim, to say the least.

Union finance minister Nirmala Sitharaman has been bravely grappling with the situation, turning back firmly on her first Budget and taking what can be described as emergency measures to pull the economy out of the doldrums, creating larger public sector banks (PSBs) through mergers and recapitalising some others, reducing corporate taxes in the hope that things will get better soon.

The declaration by the newly-chosen managing director of the International Monetary Fund (IMF), Kristalina Georgieva, that 90 per cent of the world economy will have its worst growth rate since the 2008 global financial meltdown, the not-so-good rating for India on the Global Competitive Index of the World Economic Forum, and the Reserve Bank of India revising the estimated growth rate for 2019-20 from 6.9 per cent to 6.1 per cent only........

© Deccan Chronicle