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Narendra Modi regime's growth story challenged!
At a time Narendra Modi government is celebrating its third anniversary with massive out-reach programmes all over the country for a period of two weeks and all the ministers, MPs and party functionaries are on extensive tours, its growth story seems to be challenged.

Firstly, Prime Minister Narendra Modi's demonetisation move has proved to be disastrous for the economic growth of the country.

Despite a very good showing by the agricultural sector, India's growth slowed down to 7.1 per cent in 2016-17. India also lost the tag of the fastest growing economy to China in the March quarter with a gross domestic product (GDP) growth of 6.1 per cent.

These are not the observations made by opposition leaders, but the figures circulated by the government itself.

The GDP, as per the new series with base year of 2011-12, had expanded by 8 per cent in 2015-16. It was 7.9 per cent as based on the old series. Almost all sectors showed deceleration in the aftermath of demonetisation.

According to the data released by the Central Statistics Office (CSO), the Gross Value Added (GVA) slipped sharply to 6.6 per cent in the last financial year that ended on March 31, from 7.9 per cent growth in 2015-16. Demonetisation seems to have impacted the GVA in the third as well as fourth quarter of 2016-17, which slipped to 6.7 per cent and 5.6 per cent respectively from 7.3 per cent and 8.7 per cent.

Almost all sectors, with the exception of agriculture, showed deceleration in the aftermath of demonetisaiton. While the manufacturing sector output in the fourth quarter slowed to 5.3 per cent versus 12.7 per cent in the same period of last year, the construction sector slipped into the negative territory. 

Thanks to good monsoon, the agricultural sector posted a huge jump in growth as it expanded by 4.9 per cent during 2016-17 compared to dismal growth of 0.7 per cent in the previous year.

Meanwhile, one of the crucial minister in Narendra Modi government stated that the current economic growth is not translating into employment generation - something which goes contrary to what the Narendra Modi government has been maintaining so far.

Minister for Labour and Employment Bandaru Dattatreya, in Mumbai said, "The current growth is a jobless growth. Many European and Asian countries, including India, are facing it...growth is being reported that it is not reflecting in employment generation."

Ironically, Dattatreya's comments contradict his own colleague Ravi Shankar Prasad. The Law and IT Minister had said, "Some performance related routine training is an integral part of any industry and should not be exaggerated. NASSCOM has assured that there is no reason to panic. My ministry is proactively in touch with India IT CEOs to evaluate layoff situation."

Interestingly, Dattatreya further said that he was unable to get feedback from none of ministry on jobs created in their respective areas during last three years. So, he said he has formulated a task force to get figures from each ministry in job creation area.

Editorial NOTE: This article is categorized under Opinion Section. The views expressed in this article are solely those of the author and do not necessarily represent the views of In case you have a opposing view, please click here to share the same in the comments section.
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