NDA rule and Indian economy

After a prolonged silence in the last five years the former prime minister, former finance minister in PV regime and ex RBI Governor spoke elaborately about the performance of the present ruling party.

The Indian economy was over-regulated and the government tried to control and interfere in almost all departments including the independent organisations like RBI, CBI, courts and of late the election commission which seems it wants to have control on all key functionaries and make its mark.

He has strongly criticised the demonetisation as lack of vision and understanding of the country's dynamics of economy.

From the finance ministry's latest monthly report which reflects that the country is heading for a slow down and as such revised GDP figures for the quarter January - December to just 6. 5% from 7%.

The reasons for this is declining growth of private consumption, tepid increase in fixed investment and muted exports besides our rupee has become Asia's worst performing currency.

The demonetisation had a monstrous effect on the public and a blow to economy and decimated the informal and unorganised sectors turning crores of people jobless.

The current government is boasting of getting investment, but in reality, the FDI growth at a five-year low and core sector growth is at two -year low.

The banking sector was under severe stress, the NPA scare had brought lending to a barest minimum or a virtual halt.

Though the IBC process is good but" a one - size - fits all approach" drove companies into Insolvency as such banks had to allow huge haircuts in sanctioning compromising proposals in IBC which had a dent on the profits of banks.

He has strongly felt that the Modi government has left our economy in direct straits.

His feeling that given the extraordinary majority the Modi government enjoyed in Parliament they could have utilised their political capital to reap the benefits for our country on the economy front is absolutely right and if done the present crisis could not have arisen.

T S N Rao, Bhimavaram