Falling economy, Reserve Bank of India concern is justified
The Reserve Bank of India has expressed concern about the country's economic situation and has also informed the central government.After the lockdown, the situation can become serious due to reduced demand for goods and more debt distribution.The economy started showing signs of decline in January as well. Even though the trade deficit has been low due to the fall in oil prices and the increase in tax does not show much reduction in government revenue, the condition of the rest of the regions was bad. Estimates from all around were that the economy was going to shrink. Although this was not being said with certainty, it was believed that the government estimates that are coming out through the budget or the Reserve Bank, etc., are not going to be fulfilled.
However, today the economy is eating dives and its shrinkage will be five per cent or nine to ten per cent, this is being debated. Some areas have become completely 'clean'. I do not believe when the business of tourism and aviation, hotels and restaurants will come back on track. Until then, the question of what will be left from the rail to the airports is different. Even after all the liberalization and all the New India, Make in India, Smart City schemes, today, from the government to the economist, all the hope of liberation is being kept from the farming and animal husbandry which has been continuously neglected and whose contribution to GDP is limited. has gone.
In fact, the skepticism towards economic principles and strategies is the main reason for the current situation, in any crisis, to speed up the economy, two aspects are the main ones. One is immediate relief decisions and the other is long term decisions. As far as the package of 20 lakh crores is concerned, the government was trying to start big industries, the reason behind which was that employment would increase if industries come into action. Engineers, artisans, laborers and people associated with transportation will get employment, but according to the Reserve Bank report everything is going against the target. The expected demand for goods in the market could not increase, due to which the situation of production is coming to a standstill, due to this, jobs are also being destroyed.
Industrialists are swallowing government money by misusing loans. Vijay Mallya, Nirav Modi and many big industrialists have scammed thousands of crores of rupees by giving fake papers, which is also challenging to get from abroad. Despite strict laws against corruption, money is swallowed in the name of industries in the form of bank loans. Land was not bought for setting up industries, but in paper, industries are shown moving. The amount of 20 lakh crores is very large. If it is used properly then it can have good results. Advice from experienced economists is essential to deal with economic matters. In a country with a population of 1.25 billion people, the policies to provide relief to the common people have not proved to be effective so far.