India’s economic expansion has slowed to its lowest level in three years. Small businesses are struggling, or even shutting down, after a major overhaul of both the country’s currency and sales tax system. Policymakers need to act now to ‘craft an effective economic stimulus package that spurs growth and job creation’. Without a stimulus of ‘a sufficient magnitude, the Indian economy is likely to see a decline in growth or even a formal recession, leading to higher unemployment, declining or stagnant wages, and a host of other economic problems’. Combined with a ‘broader unravelling of credit markets, we can expect to see continued spillovers into other areas of the economy, most importantly the labour market’. Given the tremendous damage that a recession does to employment, income and the health of millions of Indians, Parliament should act quickly to keep the economy from stalling. Whether the government will act on sage advice is yet to be seen (“Growth has fallen, but govt. can reverse trend, says PM”, October 5).
K.M.K. Murthy,
Secunderabad
The economy appears to be in a shambles and despite the gloomy forecasts for the future, leaders in the government are failing to recognise the pessimism and act judiciously to bring the economy back on track. Instead, what has been noticeable in recent days is a commentary of polemics from the men who matter in the government who are trying to convey that all economic woes will be got around in the long run (‘Business’ page – “Jobs cut worry Mittal, Goyal unfazed”, October 6). The Prime Minister has spoken about all the “virtuous” economic initiatives that his government has undertaken but has failed to articulate any measures to stimulate the economy. This narrative neither offers solace to citizens hamstrung by economic inactivity nor gives the Sensex and Nifty indices an opportunity to rise. Clearly, the government is not prepared or lacks the wherewithal to address issues of prime economic importance. The start-up ecosystem cannot progress in a disturbed business cycle. The government must also take public criticism in their stride.
Bibhuti Das,
New Delhi