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Hasty GST implementation, noteban to adversely affect GDP: Manmohan

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Manmohan Singh

[vc_row][vc_column][vc_column_text]Former Prime Minister’s earlier prediction of demonetisation bringing GDP growth down by 2 per cent had recently come true

With his prediction of demonetisation pulling down India’s GDP growth rate by two per cent having recently come true, former Prime Minister Dr Manmohan Singh has once again warned against the adverse impact of noteban coupled with effects of the hasty implementation of the Goods and Services (GST) regime on the country’s economy in the near future.

Singh, an economist of international repute, has warned that the hasty implementation of the GST regime that was rolled out in July along with the continuing effect of demonetisation will hit the country’s massive informal and small scale sectors which collectively account for nearly 90 per cent of India’s job creation.

Speaking to CNBC TV18, on Monday, the former Prime Minister said: “Both demonetisation and the GST have had some impact (on the GDP growth)… Both will affect the informal sector and the small-scale sector. These sectors are today responsible for 40 per cent of GDP.”

Singh added that “because the GST has been put into practice in haste, there are many glitches now coming up. This is bound to affect GDP growth.”

The senior Congress leader’s comments come in the wake of recent government data that showed the GDP growth slipping to a three-month low at 5.7 per cent for the April-June quarter – a decline that has been blamed on effects of demonetisation and the GST by a large section of economists and business leaders across the country.

Although the ruling government has been singing praises for Prime Minister Narendra Modi’s decision of October last year to declare the Rs 500 and Rs 1000 currency notes as no longer legal tender – a sudden announcement that flushed out 86 per cent of India’s currency from the market – the slump in the GDP had forced even Union finance minister Arun Jaitley to admit that the new tax regime had impacted the country’s manufacturing sector.

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.

Jaitley had said that the fall in GDP growth was a “matter of concern”, although he expressed hope that the economy will bounce back to a 7 per cent growth once effects of GST implementation on de-stocking ease in the current quarter.

Singh, however, doesn’t share Jaitley and the Modi government’s optimism. Shortly after demonetisation was implemented, the former Prime Minister had, while speaking in the Rajya Sabha, called the move an “organised loot and legalised plunder”. In the aftermath of the GST rollout too, Singh had told a meeting of the Congress Working Committee – the apex decision making body of the principal Opposition party that the economy was “running on just one engine of public spending”.

While his prediction of a 2 per cent fall in GDP growth rate due to demonetisation has been proven true, much to the chagrin of the Modi government, it remains to be seen whether the Centre will pay heed to the former PM’s advice now.[/vc_column_text][/vc_column][/vc_row]

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East Asia Summit: PM Modi says conflicts negatively impacting Global South, solution cannot come from battlefield

Mentioning that peace and stability should be restored as soon as possible, PM Narendra Modi said that conflicts going on in different parts of the world are having the most negative impact on countries of the Global South.

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East Asia Summit: PM Modi says conflicts negatively impacting Global South, solution cannot come from battlefield

Prime Minister Narendra Modi in his address at the East Asia Summit stressed the importance of dialogue over conflict, warning that solutions to global problems cannot emerge from the battlefield.

The Prime Minister’s remarks come as the world witnesses rising tensions in the Middle East and eastern Europe due to Israel’s escalations with Iran and its proxies in Gaza and Lebanon, and the ongoing Russia-Ukraine war.

Mentioning that peace and stability should be restored as soon as possible, PM Narendra Modi said that conflicts going on in different parts of the world are having the most negative impact on countries of the Global South.

Prime Minister Narendra Modi is attending the ASEAN-India and East Asia summits in Laos to boost ties with ASEAN countries, and echoed his stance that diplomacy and peaceful resolutions are the only path forward. He stated that he comes from the land of Buddha, and has repeatedly said this is not an era of war. He added that solutions to problems cannot come from the battlefield.

PM Narendra Modi advocated for a humanitarian approach to conflicts and reiterated India’s commitment to peace and diplomacy. He mentioned that keeping a humanitarian approach, dialogue and diplomacy will have to be given priority. Fulfilling the responsibility of Vishwa Bandhu (global citizen), India will continue to contribute in every possible way in this direction, he continued.

He also pointed to the growing threat of terrorism, urging for global cooperation to tackle the issue. He added that terrorism is also a serious challenge to global peace and security, and to face it, forces believing in humanity will have to work together. He mentioned that mutual cooperation in the areas of cyber, maritime, and space will also have to be strengthened.

PM Narendra Modi also called for a free, open, inclusive, prosperous, and rule-based Indo-Pacific, signalling India’s ongoing concerns regarding China’s aggressive moves in the region. He underlined that the peace, security, and stability of the South China Sea are vital to the progress of the Indo-Pacific. He emphasized that the approach should be one of developmentalism and not expansionism.

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Surat gang-rape accused dies in police custody

Police will produce Paswan before a court in the evening seeking his remand, the police officer said.

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Shivshankar Chaurasia, one of the two men, arrested for allegedly raping a teenage girl in Gujarat’s Surat district died in a hospital here after he complained of breathing difficulty in police custody on Thursday.

According to Surat District Superintendent of Police Hitesh Joysar, Chaurasia had complained of difficulty in breathing at around 2.00 pm and was rushed to a health centre in the Kamrej area. He was then referred to the new civil hospital, where he died during treatment,” Joysar added.

The 45-year-old Chaurasia, named in murder and theft cases in the past, and Munna Paswan (40) were arrested on Wednesday for the alleged sexual assault on the minor, PTI reported.

Police will produce Paswan before a court in the evening seeking his remand, the police officer said.

Paswan, Chaurasia and a third person, who is yet to be nabbed, allegedly raped a 17-year-old girl in Mangrol taluka on Tuesday night, according to the police.

The police said that the teenager had gone to the Kim village to meet friends after attending her coaching class. She and her male friend were sitting in a deserted place on their way to a petrol pump along the highway near Mota Borsara village when three men approached them, police added.

While her friend escaped, the trio raped the minor before fleeing with her and her friend’s mobile phones. After being alerted, police registered a case for gang rape and other charges under the Bharatiya Nyaya Sanhita (BNS) and the Protection of Children from Sexual Offences (POCSO) Act.

Paswan and Chaurasia were nabbed from a nearby location on Wednesday evening and cops had to open fire while taking the duo into custody, police had said in a release.

Police said several cases had been registered against the two in areas like Ankleshwar, Kadodara, Amirgadh and Karjan.

Chaurasia was booked in a murder case in 2017 in Ankleshwar and for theft in 2023 in Karjan. This year, he was booked under the Arms Act by the Amirgadh police station of Banaskantha.

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PM Modi says India-ASEAN friendship important in times of conflicts, tensions in world

To strengthen ASEAN-India partnership, Modi said, “Review of ASEAN-India Trade in Goods Agreement by 2025.”

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Prime Minister Narendra Modi on Thursday said India-ASEAN friendship was very important at a time when parts of the world were facing conflicts and tensions.

Addressing the 21st India-ASEAN Summit, PM Modi also said he had announced the Act East Policy 10 years ago and in the past decade it had given new energy, direction and momentum to the historic ties between India and ASEAN nations.

“In the past decade, India-ASEAN trade has doubled and now stands at more than USD 130 billion,” he said.

The Prime Minister said he believed that the 21st century, also called the Asian century, is the century of India and ASEAN nations.

“India-ASEAN friendship, coordination dialogue and cooperation is very important at a time when several parts of the world are facing conflicts and tensions,” he said.

Announcing a 10-point plan to strengthen ASEAN-India comprehensive partnership, PM Modi focused on celebrating the year 2025 as “ASEAN-India Year of Tourism” for which India would make available $5 million towards joint activities.

“To celebrate a decade of Act East Policy through several people centric activities including Youth Summit, Start-up Festival, Hackathon, Music Festival, ASEAN-India Network of Think Tanks and Delhi Dialogue,” he said.

He gave a third plan, “To organise ASEAN-India Women Scientists Conclave under ASEAN-India Science and Technology Development Fund.”

The Prime Minister mentioned the doubling the number of scholarships at Nalanda University and provision of new scholarships for ASEAN students at Agricultural Universities in India.

To strengthen ASEAN-India partnership, Modi said, “Review of ASEAN-India Trade in Goods Agreement by 2025.”

Enhancing Disaster Resilience for which India would make available $5 million, he said, would strengthen partnership further. He asked to initiate a new Health Ministers’ track towards building Health Resilience.

He also asked to initiate a regular mechanism of ASEAN-India Cyber Policy Dialogue towards strengthening Digital and Cyber Resilience.

In his 10-point plan, PM Modi suggested a workshop on Green Hydrogen in order to strengthen ASEAN-India comprehensive partnership.

“Invited ASEAN Leaders to join ‘Plant a Tree for Mother’ campaign towards building climate resilience,” PM Modi suggested.

“The India-ASEAN Summit was a productive one. We discussed how to further strengthen the Comprehensive Strategic Partnership between India and ASEAN. We look forward to deepening trade ties, cultural linkages and cooperation in technology, connectivity and other such sectors,” PM Modi said in a post on X.

Modi arrived here in Laos on a two-day visit to attend the ASEAN-India and East Asia summits and further deepen engagement with countries in the groupings. 

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