Economic Slowdown in India: Understanding the Nuances and Government Interventions

Prime Minister Narendra Modi has been a controversial figure since taking office, with many critics arguing that his policies have led to economic decline in India. However, a closer analysis and a more pragmatic view reveal a different narrative. This article explores various perspectives on the economic situation in India, focusing on the steps taken by the Modi government to address the current slowdown.

My View: A Critical Analysis

From my standpoint, there is no concrete evidence to support the assertion that India is experiencing a widespread economic slowdown. Rather, this narrative is largely the result of propaganda propagated by certain economists and theorists aligned with the Congress party. Their intentions appear to be psychological; creating a pessimistic atmosphere in order to weaken the ruling BJP. However, a practical and holistic view reveals that the Indian economy is robust and operational as usual.

A recent personal experience I had recently returned to my city, Indore, from Delhi via Indigo flight. Despite Sunday being a non-working day, the T3 terminal at Delhi Airport was remarkably crowded. People were actively planning their travel, indicating that the economy is far from stagnant. Even the Rajdhani Express, which connects Delhi and Mumbai, was fully occupied. A walk around Delhi Airport City confirmed my observations – it was bustling with activity, even during weekdays. This contrast between the busy airports and the alleged economic slowdown highlights the disconnect between reality and perceived narratives.

Hence, I strongly believe that economic pessimism being perpetuated by some quarters is nothing more than an attempt to undermine the Modi government. Economic indicators such as the value of currencies are stable or even improving. The government has taken significant steps to improve money circulation through tax reductions and other measures aimed at boosting the mood of the economy. These actions have been instrumental in fostering a more optimistic outlook, which in turn, is beneficial for the economy as a whole.

Government Interventions and Economic Reforms

The government of India (GOI) has taken several steps to address the economic slowdown, particularly through the implementation of the Non-Performing Assets (NPA) and Special Additional Rating for Financial Sector Efficiency and Sustainability (SARFESI) Act. This intervention has been beneficial not just for large corporations but also for small and medium enterprises (SMEs) in the service sector. Even big names like Vodafone and Airtel have openly acknowledged their challenges and requested support. However, the smaller scale businesses are more constrained in asking for assistance, showcasing the differential treatment under the reforms.

While the reform measures have benefited a significant portion of the economy, they have not been comprehensive. The Modi government acknowledges the need for concentrated efforts in rural development, infrastructure, real estate, and housing to elevate the consumption power in rural areas. The focus on MSMEs (Micro, Small, and Medium Enterprises) and their status under NPA framework is crucial, as any closure of units can lead to further economic strain. It is essential for the government to address these challenges head-on, rather than shifting blame onto private enterprises or the government itself.

Unemployment is a rising concern, and the government should take proactive measures to address this issue. According to the constitution, the role of the IAS, IPS, and other public servants is to shield themselves from failure, but this cannot be an excuse for inaction. The government must invest in rural development, infrastructure, real estate, and small medium enterprises to raise the rural consumption power effectively. The current focus on certain sectors and delayed action on major stakeholders could stall economic recovery, which is detrimental for the overall growth and stability of the Indian economy.

Conclusion

The narrative of economic slowdown in India is more complex than what meets the eye. While there are challenges and areas that require improvement, the proactive steps taken by the Modi government under the GOI framework showcase a more comprehensive approach to addressing these issues. The economy, as observed from practical perspectives, is functional and robust. The ongoing economic reforms and government initiatives are crucial indicators of the government's commitment to addressing the challenges faced by various sectors of the economy. It is essential to maintain a balanced and realistic perspective to foster a resilient and growing Indian economy.