Bahujan Samaj Party chief Mayawati on Saturday expressed concern over the prevailing economic conditions and said the threat of an “economic recession” is looming over India.
“In the midst of serious issues like widespread unemployment, poverty, price rise, illiteracy, health, tensions/violence, the threat of an economic recession is looming over the country,” she said in a tweet. “The trader community is dejected and worried. After job cuts, they are forced to commit suicide. The Centre must take this seriously,” she added.
Mayawati’s comments came amid a severe crisis in the automobile sector and fast moving consumer goods. The government is also battling decreasing government revenues and reduced consumer demand. Economic growth slipped to a five-year low of 5.8% in the January to March quarter. This was the slowest pace of growth in 17 quarters. A number of economists have also raised questions about the methodology of assessing official growth numbers.
On Thursday, Prime Minister Narendra Modi during his Independence Day speech had reiterated his government’s goal of growing India’s economy to $5 trillion by 2024, and said India needed to make “high jumps” instead of making incremental progress. However, the Congress accused Modi of reducing international investment in the country, damaging trade ties, weakening the currency “to historic lows”, and disrupting the export industry.