Now when the running Narendra Modi government is facing criticism for the economic growth slowdown from all sides — opposition, party-men, global rating agencies — top industrialists choose to back Prime Minister’s vision and suggest that the growth is going to accelerate in the second quarter of the financial year 2017-18.
Yesterday, both, the Prime Minister Narendra Modi and Finance Minister Arun Jaitley hit out at the critics saying that the government was committed to structural reforms and necessary steps were being taken to remove glitches. Narendra Modi said the centre was committed to reversing the setback to growth in the April-June quarter. Structural alterations were undertaken during the last three years, including the historic Demonetisation, Goods and Services Tax, and the Insolvency & Bankruptcy Code. This all is expected to help the country step up into the next league.
Top industrialist Sunil Mittal assisted Narendra Modi by saying that it is his duty to create hope. He added that the Indian economy is doing extremely well as compared to its global peers.
Adi Godrej, head of the Godrej group also spoke in government’s defence and said that the economic growth rates fell due to GST destocking in June and will likely recover in the second quarter of FY18. “There was an economic “go-slow” in the month of June, and there’s a justified explanation to that. Since in the GST, many rates were descending down, there was destocking in June.”
“Even if you observe the April-June quarter, the lower growth was primarily in the month of June. We should wait for July-September figures. GST collection has done well in July and August. I personally feel the economy is performing well,” Adi Godrej added.
Finance Minister Arun Jaitley in a screen interview launched a disguised attack at senior BJP leader Yashwant Sinha and said, “Those who do not have broad shoulders to either take brave and bold decisions or implement such decisions, really can only sit on the sidelines and comment on it.”
“But at the end of the day, it’s our responsibility as the government to make sure that these decisions work, work well, and remove whatever glitches come in the way of these decisions,” Arun Jaitley added.
India’s economic growth slumped to a three-year low at 5.7% in the first quarter of the current fiscal year post demonetisation and switch to the GST regime. The Reserve Bank of India (RBI) downgraded its growth forecast from 7.3% to 6.7%, but industrialists feel the policies by the Modi government is going to fetch results in the long term.