has ‘Decoupled’ India’s robust Economy by myopic vision & the double
whammy of ‘DeMo-Disaster’ & ‘Ill-conceived GST’!
a press Statement Issued 0n January 29, Shri Randeep Singh Surjewala,
In-Charge, Communications, AICC said that ‘Economic Survey’ establishes
that Modi Govt has become synonymous with ‘Distorting Macroeconomic
Indices’ & ‘Slowing Down Economic Progress’ According to Shri Randeep
Singh Surjewala,the Economic Survey 2017-18 has affirmed the utter
mismanagement of India’s Economy by Modi Government in last 4 years. No
amount of new announcements in the Presidential Address and the
forthcoming budget can undo the damage the BJP Government has done to a
robust economy like India. GDP Growth is down, Agriculture is in utter
disarray, Rural Wages are declining, Industrial Growth is plunging, Job
creation figures are invisible, Fresh Investment is low, Education and
Health spending is in crises, ‘Make in India’ is floundering, Price Rise
is raising its ugly head and due to Demonetisation & Flawed GST, the
informal sector which by the Economic Survey’s own admission has
severely ‘impacted the informal sector’. (Source: Page No7, Economic
Survey 2017-18) With one year to go for next General Elections, PM Shri
has plunged the’ State of India’s
Economy’ towards despondency, dejection and dire straits. We say this
with a sense of responsibility and the Economic Survey only reaffirms
our view as indicated in the
following important parameters:-
1. Budget 2017-18 predicted a GDP Growth of 7.5% for 2017-18. FM has
turned out to be more than a full percentage point off the mark! This
year again, the Economic Survey predicts GDP Growth at 7-7.5% for
2018-19, we sincerely hope that this prediction does not become another
lame duck prediction, considering the constantly diminishing past track
record of GDP growth in the years 2015-16 (8%), 2016-17 (7.1%) and
2. Agriculture is India’s Lifeline. Economic Survey recognizes that and
says “Agriculture matters for economic reasons because it still accounts
for a substantial part of GDP (16%) and employment (49%)”. But causing
‘Agrarian Distress’ has become the designed objective of Modi
a. During Congress –UPA Govt, between 2004-05 and 2013-14, Agri-GDP
registered a growth rate of 4.2%, while the overall GDP grew at 7.9%.
The Agri-GDP growth under Modi Government, has plunged to just 1.9 % ,
half of what was achieved in the first four years of the UPA. Reason is
deliberate betrayal of India’s Farmers by PM on the promise of Cost +50%
b. Economic Survey admits that BJP’s promise of ‘Doubling Farmer Income’
would require ‘12% Growth per annum for 6 continuous years’! Reality is
it is growing by mere 1.9%!
c. With another year to go for the general elections, even if the Agri-GDP
growth jumps to 4 per cent in 2018-19, the five-year average will still
be 2.3 %, the lowest since the
economic reforms began.
3. The Average Industrial Growth during the 10 years of Congress-UPA was
4.2%, while the Average Industrial Growth in the last 4 years of Modi
Government in 3.7%. Construction sector which is the largest employer in
the non-agriculture sector has slowed to 1.7% in FY2017. No wonder,
there are no jobs in the country!
4. Economic Survey says the GST rate should have been one single rate of
15 - 16%. The Modi Government did not listen to the Congress' suggestion
of a true 'One Nation, One Tax' cap but it chose not to listen to its
own CEA by complex and cumbersome GST rates.
5. Weak Export and a Trade Deficit at a 3 year high have also added to
the economic stress. The manufacturing export as % of GDP has declined
from 10.6% to 8.3%
6. Although the Economic Survey alludes to the rising Oil Prices in the
last 3 quarters, the stark truth is that Modi Government failed to
utilize the windfall of Rs 5.9 Lakh Crore (Till September 2017) due to
Central Excise Duty and Taxes for the benefit of common people.
7. Rise in food prices for the average consumer. Food inflation has gone
up to 5% overall in December 2017 from just 2% in December 2016
8. For all the hoopla over "Beti Bachao Beti Padao" (BBBP), the Economic
Survey says that there are still 20 lakh girl children that go missing
every year. The Modi Government’s outlay of “Beti Bachao, Beti Padhao”
Scheme for 161 Districts was just Rs 200 Crore for the year 2017-18.
That means each district under the scheme was provided on an average
just Rs 1.24 Crore. How will the ‘Beti’ benefit from this meagre budget?
Was it only meant for advertisements?
9. It remains non-committal that Modi Government can control its Fiscal
Deficit. If the government slips on its deficit commitment, then it can
lead to review of India's ratings.
10. The Economic Survey claims that there is a “50% increase in unique
indirect tax registrants since GST”- However the stark reality is that
Modi Govt had set a target of Rs 1.9 Lakh Crore of Gross Tax Revenue for
FY18, instead the Central Government only earned Rs 1 Lakh Crore till
November 2017, falling short of Rs 90,000 Crore
11. Last year, the Economic Survey stressed on reigniting the Apparel
and Leather Sector in order to provide impetus to growth. Due to which,
then a package of Rs 6000 Crore was announced in June 2017. The Economic
Survey in its flowery language virtually accepts that the Rs 6000 Crore
Package failed to provide impetus to the sector. The package did not
have a statistically positive impact on RMG (Ready Made Garments) made
of cotton and silk (two most important fibers of Indian export)
All in all it has turned out to be ‘much ado without direction, cohesion