Raghav Chadha schools Twitteratis on Economic Slowdown; says the slump is not just about numbers but ‘a felt reality’
After national dailies reported alarming figures and statements reflecting the condition of the economy, AAP National Spokesperson Raghav Chadha took to Twitter to share his thoughts on the subject.
In an unusual tweet, Raghav Chadha drew attention of Twitter users to the deteriorating condition of the Indian economy (https://bit.ly/2KMvmHH). Primarily focusing on the crash in the automobile sector, he said, “We have now officially entered into an economic slowdown. From falling GDP numbers, job loss, to the auto industry on the verge of collapse – the mess is all pervasive. But is the government willing to even acknowledge the problem?”
Stating that 286 dealerships had been closed in the past 18 months, he said that the negative impact can be seen on tyre, steel, steering and manufacturing industries. He noted that 15,000 people had lost their jobs in the industry over the past three months and that Honda had laid off 700 workers at their manufacturing plant in Haryana.
Throwing light on to the housing sector, he said that as per the latest numbers, India’s top 30 cities had 1.28 million unsold housing units, witnessing a steep increase from March 2018 figures, revealing that ‘Indians aren’t buying houses at the pace at which they are built’. He stated that such a development will have ripple effect on subsidiary industries such as cement, paints, etc.
He also noted that, “Not just manufacturing,even the service sector is decelerating. Banks’ credit data shows that tourism, hotel & restaurants, transport, computer software, shipping and commercial real estate are down. Service sector which contributes more than 50% to GDP mirrors the general slowdown.”
Hitting out at the 5 Trillion Dollar Economy Goal, he tweeted; “Even as Govt makes claims of taking India to a $5 trillion economy, India slips from 5th place to the 7th in World Bank’s Global GDP Rankings.As experts state, reason for this is – currency fluctuations and economic slowdown.”
Quoting Varun Berry, Managing Director, Britannia Ltd who’s recent interview has set off a series of discussions and debates on the health of economy, he tweeted : “Slowdown is not just abt numbers, it’s a felt reality. With uncertainty all around, people cut back even on the smallest of expenses.”
MD of Britannia said, “Even for a Rs 5 product if the consumer is thinking twice before buying it, then there is some serious issue in the economy”.
Raghav Chadha is a Chartered Accountant and has was the National Treasurer of the Aam Aadmi Party.