As per the Reserve Bank of India’s statement, delivered on May 27, the Indian economy passed through cycles of boom and downswing in the GDP growth rate. The boom had previously set in a forecast that economist Manmohan Singh had made with the “acche din” phrase and the Narendra Modi government assumed power in 2014.
Does the Modi Government have any concerns about this nation?
In 2014, Gujarat Chief Minister Narendra Modi howled to national influence on the hope of bringing about Vikas (economic growth) and Achhe Din (better days). He entered at the moment when India’s economy seemed to have fallen.
Despite how the economy worked during the first five-year term, Modi returned his success in 2019 by repeating as Prime Minister with an even greater mandate. However, the question is, after coming into power for a second time Indian economy is still in a needy state. Does the Modi government have any concerns about the nation? Or want to enjoy the luxury and power?
Gross Domestic Product (GDP) is an economic theory understood hardly by the public but debated extensively. In the quarter (April-June 2014), the Modi party came to control seven years ago. India registered the highest GDP growth rate in nine quarters or two-and-a-half years.
Currently, the Indian economy is on a “down-cycle,” as per the RBI. The downswing is prolonged due to the Covid-19 pandemic. The origin of the current downswing concurred with demonetization (November 2016) and the Goods and Services Tax (July 2017).
Both demonetization and GST came as improvements. Moreover, the government attempted to introduce improvements in banking to plug knotholes. It appeared in describing extensive bad loans. These models, to some experts, were necessary, however, with an economic-political cost.
The GDP growth rate decreased from the high of 8 percent in 2016-17 to 4 percent in 2019-20. Covid-19 took a contraction for the first time in decades.
Rojgar or employment was the different focal point of the election drive that fired the Narendra Modi wave of 2014. Nevertheless, despite the government’s strong claims over employment generation through the Mudra loan scheme and the MNREGA, producing enough jobs has been the most significant headache for the Modi government.
A scholarly paper by two independent economists in 2019 settled that India’s total employment diminished between 2011-12 and 2017-18 by 90 lakh. It is the first example of an actual loss in the number of jobs in India since Independence.
The government’s study that published formally after the 2019 Lok Sabha election, observed that unemployment was 45 years high at 6.1 percent.
An unemployment rate of 2-3 percent has been estimated routine in India. It has been in the 6-7 percent zone during the Covid-19 pandemic. Given the economic uncertainty due to the prevailing Covid-19 situation, the promised employment for job seekers is still not in sight.
For most of the initial tenure of the Modi government, the rate of inflation was not a political obstacle. The chief patron was quickly decreasing the global oil prices from approximately $110 per barrel to first about $85 in 2015, before going beneath $50 in 2017 and lingering there in 2018 and early 2019.
There is almost all commodity in the market that are trading at higher prices. For instance, Edible oil, with traditional mustard oil trading at over Rs 180 a liter.