Get ready to say goodbye to Rs 5 trillion economy: Subramanian Swamy on economic slowdown

Get ready to say goodbye to Rs 5 trillion economy: Subramanian Swamy on economic slowdown

HIGHLIGHTS

  • India's GDP growth for the first quarter of 2019-20 has come in at 5 per cent
  • Several core sectors including auto, real estate and manufacturing have slowed down significantly
  • Swamy said India would not be able to become a Rs 5 trillion dollar economy without quick economic measures

BJP leader Subramanian Swamy on Saturday said India may not reach its target of becoming a Rs 5 trillion dollar economy if no new economic policy is implemented soon.

His comment comes a day after GDP growth dropped to 5 per cent for the first quarter of financial year 2019-20, which is the lowest in the past six years.

On Twitter, Swamy said, "Get ready to say goodbye to Rs 5 trillion if no new economic policy is forthcoming. Neither boldness alone or knowledge alone can save the economy from a crash. It needs both. Today we have neither."

Even as the government continues to take a series of steps, including the mega bank merger to contain the economic slump, experts suggest that could become critical if the government does not focus on increasing investments.

Over the past few months, core industries have witnessed a gradual slowdown in growth due to weak consumer demand and lack of investments.

Some of the sectors that have been hit badly include automobiles, manufacturing and real estate sectors.
However, Chief Economic Adviser KV Subramanian on Friday said that the government is taking various steps to boost economic expansion.

"The slowdown in growth is due to endogenous and exogenous factors," Subramanian said while commenting on the fresh GDP data.

He said the government is taking all steps to revive the economy and expressed confidence that the country would be on a high-growth path "very soon".

The government remains committed to its fiscal glide path, he added.

"The government is alive to the situation and has taken several measures including mega-merger of banks (announced during the day)," he emphasised.

Finance Minister Nirmala Sitharaman on Friday announced merger of 10 public sector banks into four, thus bringing down the number of state-run lenders to 12 from 27 in 2017.

Besides this, the minister had announced a slew of measures last week, including steps to increase liquidity in the critical NBFC sector.