Admitting that the GDP has shown a negative growth in the second quarter of 2020,ie, quarter ending June, Brigadier Veteran Anil Gupta, Spokesperson of Bharatiya Janata Party stated, “it is the responsibility of the opposition to criticise the government but criticism should be constructive and not tend towards creating panic and negativity among the public,” in a press statement issued here today. Reacting to the statements of various leaders of the opposition parties who have left no chance to create a gloomy picture of nation’s economy, Brig Gupta asked them to not to present only half-baked facts to justify their criticism but to carry out a holistic appraisal so that the common man does not become a victim of the “misinformation” campaign launched by them. The fact is that the figures pertain to just one quarter and not the entire year based on which the GDP of the nation is calculated should not be lost sight of.
It is a well – known fact that the economies world over have been hit by the Covid pandemic and Indian economy is no exception. By linking the negative growth of just one quarter to demonetisation and GST, the opposition is merely trying to flog a dead horse in order to criticise the government. The whole nation knows that during this quarter (April-June), there was total lockdown and all industrial activities including business had come to a standstill and hence the negative growth of GDP during the said quarter is on the expected lines. Comparing with other countries is also not justified on the ground that different nations were affected by the pandemic at different times and the duration and implementation of lockdown also varied, asserted Brig Gupta.
It would suffice to say that most major economies have contracted in the said quarter except China. For obvious reasons since China had reported a negative growth in the first quarter (Jan-Mar), while India had recorded a positive growth, being one of the top performers. With higher performance in Q1, naturally negative growth in Q2 would get magnified on Quarter on Quarter (QoQ) basis asserted Brig Gupta.
Indian economy has begun to show green shoots. Agriculture sector is already doing well. The auto industry has also reported encouraging figures in August. While Escorts reported an all-time high for its monthly tractor sales, MarutiSuzuki reported a 21.3% year-on-year jump in passenger vehicles sale with biggest jump being in mini segment stated Brig Gupta.
Purchasing Managers’ Index (PMI) rose to a six-month high of 52, a reading of above 50 indicates expansion. It is indicative of positive developments in the health of Indian manufacturing sector. The Nomura India Business Resumption Index (NIBRI) rose to a post-lockdown high of 75.7 for the week-ended August 31 from 73.4 in the previous week indicating a pickup in business normalisation after a prolonged flattening. Such positive inputs should assure the nation that the economic situation is not as gloomy as being projected by the opposition reiterated Brig Gupta.