The question had already arisen as the Modi government had given priority to other issues instead of the crisis-ridden economy. The government counter-claimed that the economy was showing signs of recovery. But today, the finance ministry said, the economy is unlikely to turn around now. Because, the number of corona infections is increasing. There are occasional lockdowns in different states.
The 12 major states that drive the country's economy now account for 75 percent of those infected with the corona. About 40 per cent of covid positives are in the two major industrialized states of Maharashtra and Tamil Nadu. The Finance Ministry today commented on the economic situation in June, saying, "The economic woes of the economy seem to be a thing of the past as the unlock phase begins." Various measures of the economy fell into the abyss in an unprecedented way in April. From there it improved in June. But with the increase in the number of corona cases and regular lockdowns at the state level, the risk remains high.
In July, the index of manufacturing industry in the country has fallen more than in June. As a result, shopping was becoming less. He seems to be facing a lockdown at the state level. But the demands of the finance ministry, power consumption, transportation of railway goods, sale of diesel, collection of tolls on highways, increase in production of steel-cement are indications of recovery of the economy. However, they also acknowledge the risk of increasing the number of infected people in more than one state
Sharad Pawar and Sitaram Yechury questioned the government's priorities as the Prime Minister and Union ministers were busy laying the foundation stone of the Ram Mandir despite the economic crisis. After the report of the Ministry of Finance, there is a demand that the government should focus on rescuing the economy.
Two days ago, former Prime Minister Manmohan Singh and Congress leader Praveen Chakraborty wrote in an article that people's confidence must be restored if the economy is to recover. Manmohan argued that India was in a corona crisis with the slow pace of economic growth. Unemployment and banking problems were already going on. The epilepsy has made him even more painful. Today, Rahul Gandhi commented, "People's confidence in the economy has vanished. The Prime Minister and his team do not have that feeling, nor do they know how to solve the problem. Every Indian will have to understand that - it's just a matter of time. "
But the finance ministry hopes that the rural economy, especially agriculture, will do a lot of cushioning during the crisis. Because, there was good rain during kharif sowing. If the income from farming increases, the demand in the village market will increase. However, the reason for concern is that on the one hand, the government's income has decreased, on the other hand, it has to spend extra money to revive the economy. The IMF predicted that the world economy would shrink by 4.9 percent by 2020. However, according to the finance ministry, the growth rate of the first three months of the financial year, i.e. April-June, at the end of August, the chances of the economy recovering will be somewhat clear.
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