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As GDP slumps to three-year low at 5.7 %, Congress hits out at Centre over DeMo, GST

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As GDP slumps to three-year low at 5.7 %, Congress hits out at Centre over DeMo, GST

[vc_row][vc_column][vc_column_text]The disappointing GDP figures for the April-June quarter come at a time when the Centre is already facing harsh criticism over the purported failure of demonetisation, with the RBI claiming that 99 per cent of banned notes made their way back to various commercial banks

Even as the Centre was trying hard to defend Prime Minister Narendra Modi’s 10-month old demonetisation move amid counter-claims that almost established how the move to curb black money had failed miserably, the latest GDP figures – 5.7 per cent for the April-June quarter – have further strengthened the argument that noteban was bad for the economy.

On Thursday, data released by the government revealed that the economic growth of India had slipped to a three-year low of 5.7 per cent in April-June, possibly due to disruptions caused by demonetisation and the rollout of the Goods and Services Tax regime and a slowdown of the manufacturing sector which itself was a result of a combination of noteban and GST rollout. GDP stood at 6.1 per cent in the preceding quarter. A revised growth of 7.9 per cent had been pegged by the government for the first quarter of 2016-17.

The latest GDP data has come, by Union finance minister Arun Jaitley’s own confession, as a “matter of concern”. The Congress party – which had been steadfast in its criticism of demonetisation and also the manner in which the GST rollout took place – has expectedly hit out at the Centre for the slump in the GDP growth figures.

As businesses destocked inventories ahead of the GST kick-off from July 1, gross value added (GVA) in manufacturing declined to a low of 1.2 per cent, from 10.7 per cent, year on year. Gross Domestic Product (GDP) growth in the first quarter of 2017-18 was lower than 6.1 per cent of the preceding one and 7.9 per cent in the same period last fiscal.

The finance minister admitted that the slump in the GDP was fuelled by the GST rollout, although he didn’t count demonetisation as a reason for the same. “Since it was announced that GST would come into operation from July 1, most manufacturers were de-stocking during period April-June. As a result, trading went up because sales were taking place but it was stocks which were being sold. No new manufacturing happened,” Jaitley said, adding that the slump in GDP “seems to be the pre-GST impact of de-stocking”.

When asked about whether the GDP can grow at 7 percent this fiscal, Jaitley said, “I am hopeful, because of the pre-GST de-stocking, this would really be the bottoming out.”

As GDP slumps to three-year low at 5.7 %, Congress hits out at Centre over DeMo, GSTFormer finance minister P Chidambaram, who has already been vociferous in his criticism of the manner in which the GST rollout took place and of demonetisation since the RBI admitted that 99 per cent of banned Rs 500 and Rs 1000 notes had been deposited back with the banks, took to Twitter to hit out at the Centre over the decline in the GDP numbers, which he called a “catastrophe”.[/vc_column_text][vc_raw_html]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[/vc_raw_html][vc_column_text]Economic experts too admitted that the slump in GDP was due to a combination of the GST rollout and impact of demonetisation.

Abheek Barua, Chief Economist of the HDFC BANK said, “GDP numbers are certainly disappointing. The numbers seem to suggest that the slowdown from last quarter has intensified due to the combination of long-term slowdown and temporary shock factors like demonetisation and GST (goods and services tax) destocking… We have to revise our GDP outlook numbers for the full year closer or perhaps lower than 7 percent.”

Noted economist Arup Kumar too expressed similar views, saying “demonetisation has been a complete and utter failure and its impact on the GDP growth figures is evident… the GST rollout too has taken its toll on economic growth and I don’t see the impact of either of these factors, especially demonetisation, waning for at least another quarter”.

It is perhaps timely to recall that in late November 2016, former Prime Minister Manmohan Singh had – while addressing the Rajya Sabha – called demonetisation a ‘mammoth tragedy’ and warned about a 2 percent hit on GDP in the aftermath of the demonetisation. The Narendra Modi government and demonetisation cheerleaders had then rubbished Singh’s prophecy. After 10 months of demonetisation, with no major tangible gains from the exercise and a severe hit on the economy, Dr Manmohan Singh is probably having the last laugh now.[/vc_column_text][/vc_column][/vc_row]

India News

Congress hits back at PM Modi, says J&K has became bureaucratic fiefdom controlled by BJP-RSS

The Grand old party asked when will full statehood return to Jammu and Kashmir.

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The Congress Saturday hit out at Prime Minister Narendra Modi over his statehood to Union Territory only by saffron party possible remarks saying the region has become a bureaucratic fiefdom controlled by the BJP-RSS cabal.

The Grand old party asked when will full statehood return to Jammu and Kashmir.

Earlier today, Prime Minister Modi addressed an election rally in the Doda district of Jammu region in support of BJP candidates and said only his government will grant statehood to Jammu and Kashmir.

Congress General Secretary (Communications) Jairam Ramesh noted that since the fall of the PDP-BJP government in 2018, Jammu and Kashmir has been administered by Modi government.

In a series of questions to the Prime Minister,  Ramesh asked, “Why has Modi’s government failed to salvage the security situation in J&K and what is his vision to restore normalcy.”

 “Why is the central government consistently lying to the country about the security situation in J&K?” Ramesh said in a post on X.

The Congress leader further asked why has there been a sharp increase in narcotics smuggling under the Union government’s administration.

Ramesh said one fundamental reason for the upsurge in terrorist activity, particularly in Jammu, is the sharp rise in naroctics smuggling over the last few years with the International Border in Jammu rather than the LoC in Kashmir, being the primary area of operation for the smugglers.

He alleged that since 2018, the people of J&K have been denied any avenue to express their grievances.

“The region has become a bureaucratic fiefdom controlled by the BJP-RSS cabal. While claiming to have ended special status for J&K, the government has in fact created an extra-special situation of a new and unique political system: one where the state has been downgraded to a UT, elections have been suspended, and all norms of constitutional morality violated,” he alleged.

In his speech in Parliament on December 11, 2023, Home Minister Amit Shah stated that full statehood to J&K would be restored at an “appropriate time”, Ramesh pointed out.

“Five years after being stripped of their statehood, the people of J&K still lack clarity on what the timeline for this return of statehood is. Based on the experience of the last five years, where the Assembly elections were delayed on one pretext or the other, the people of J&K don’t buy the center’s assurance of restoration of statehood,” he said.

Can the Prime Minister give a straight answer to this key question as to when will full statehood return to Jammu and Kashmir, the Congress leader asked.

He further asked who will take moral responsibility for the loss of two Indian Army personnel to terrorist attacks in Kishtwar on Friday.

“One of the most repeated talking points of the non-biological PM is that the Government’s abrogation of Article 370 has curbed terrorism in Jammu and Kashmir. The mood on the ground in J&K, however, is one of anxiety. At least fifty-three security personnel have been killed to the south of Pir Panjal since 2021, in an area where there were no major incidents of terrorism between 2007 and 2014,” he said.

“In the last few months, it has spread even to neighboring districts that we considered largely peaceful: as evinced by the attack in Reasi on the 9th of June, the attack in Kathua on the 10th of June, in Doda on the 11th of June, in Udhampur on the 19th of August, and in Kishtwar on 13th of September. Infiltration from Pakistan is rising along the International Border, and a palpable sense of insecurity prevails across J&K,” Ramesh said.

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Arvind Kejriwal visits Hanuman Mandir in Delhi’s CP day after release

“In this struggle against injustice, Lord Hanuman’s blessings have always been with us,” Kejriwal said.

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Delhi Chief Minister Arvind Kejriwal on Saturday visited Hanuman Mandir in Delhi’s Connaught Place at noon today to offer thanks and seek blessings, a day after being released from Tihar Jail in Delhi excise policy case.

“In this struggle against injustice, Lord Hanuman’s blessings have always been with us,” Kejriwal said.

In a post on X, Kejriwal said, “Today, along with my wife Sunita Kejriwal and other colleagues, I reached the ancient Hanuman temple in Connaught Place and worshipped Lord Hanuman and received his blessings.” He added, “I prayed to God for everyone’s happiness and prosperity. May God keep this courage in all of us in this fight to save the country.”

The Aam Aadmi Party (AAP) chief Kejriwal’s visit to the temple comes after the Supreme Court granted him bail on Friday in the Delhi excise policy case.

The Apex Court granted bail with few terms and conditions such as barring him from entering the Chief Minister’s office and signing files.

The Aam Aadmi Party leader visited the temple along with his wife Sunita, former deputy Manish Sisodia and AAP leaders Sanjay Singh and Saurabh Bharadwaj. Kejriwal also visited Rajghat and paid tributes to Mahatma Gandhi’s memorial.

“Today, Arvind Kejriwal and his wife met the country’s senior-most lawyer Abhishek Singhvi at his residence, who is providing legal assistance to Chief Minister Kejriwal in fighting all the conspiracies of the dictator,” APP said.

Sharing a picture with AAP leaders including Chief Minister Kejriwal on X, Singhvi said: “Good to see CM Kejriwal thinner due to weight loss but with none of his fire diminished. And the larger AAP family. Very sweet of them to come collectively.”

Yesterday, the bench of Justice Surya Kant and Justice Ujjal Bhuyan delivered its verdict on two petitions filed by Kejriwal challenging his arrest and seeking bail in the case registered by the CBI under the Prevention of Corruption Act. It allowed the bail petition of Kejriwal on the grounds that the charge sheet had been filed in the case and that the trial was unlikely to be completed in the near future.

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Mamata Banerjee makes surprise visit to protest site of junior doctors, says last attempt to resolve crisis

“This is my last attempt to resolve the crisis,” Banerjee said.

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West Bengal Chief Minister Mamata Banerjee on Saturday made a surprise visit to the site where the junior doctors were protesting, and assured them that she would look into their demands and take action if anyone was found guilty. She said this was her last attempt to resolve the crisis.

Addressing the protesting doctors amid chants of “we want justice” outside the Swasthya Bhawan in Salt Lake, Banerjee said she was spending sleepless nights as the medics were agitating on the road amid rains.

Banerjee said, “I came to meet you as your ‘didi’ not as the Chief Minister.”

“I assure you that I will study your demands and take action if someone is found guilty,” she added, urging the protesting doctors to return to work.

The West Bengal Chief Minister also announced that all state-run hospitals’ patient welfare committees were dissolved immediately.

“This is my last attempt to resolve the crisis,” Banerjee said.

After the Chief Minister left the site, the agitating doctors said they were not ready to compromise on their demands till discussions were held.

The medics have been camping outside Swasthya Bhawan, the headquarters of the State Health Department, since Tuesday with a host of demands, including better security at state-run hospitals and the removal of top officials over the rape and murder of the doctor at the RG Kar Medical College and Hospital.

Last month, Banerjee denied claims accusing her of threatening doctors and alleged that a malicious disinformation campaign was unleashed against her speech yesterday. 

The Chief Minister asserted that she did not utter a single word against medical students or their movement against the rape and murder of a doctor in Kolkata’s RG Kar Medical College and Hospital.

Banerjee promised to bring amendments to laws to ensure capital punishment for convicted rapists. Speaking at the foundation day of the party’s student wing, Banerjee warned the state governor of the protest outside the Raj Bhavan here if the governor delays in giving assent to the amended bill or forwards it to the President for ratification.

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