Effects of GDP Contraction Will Be Felt For Years to Come, Banking Sector To Be Hit Hard
- 3 years ago
In a 30-minute interview to The Wire, former member of the World Bank and deputy chairman of the All India Professionals’ Congress (AIPC), Salman Anees Soz, says that while it is important to put India’s Q1 GDP numbers in the global context, it is also important to assess the long-term impact of such a contraction.
He says that if the current government grapples with this contraction at the earliest, it will mitigate the long term damage.
Talking about the state of the informal economy, which the GDP numbers haven’t captured, Soz said that ever since demonetisation, no expert has fully been able to assess the damage done to the informal sector in India.
He added that the COVID-19 induced lockdown has only worsened India’s informal economy. Calling the current economic situation a “dire emergency”, Soz says that we cannot just rely on government experts to come out of this contraction. “Everybody needs to put their minds together”, he said.
Soz added that nobody is ready to talk about India’s banking sector crisis. He asks what the BJP did to mitigate the bad loan problem in India. Soz also called the Centre's recent GST position “very dishonest”. “Somehow the Government of India seems to think that this [State finances] is their [states’] problem, not ours”, he said.
According to Soz, the decreasing government spending is “shameful” and he believes that the current situation is going to cause a lot of “grief” and “harm” to India.
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He says that if the current government grapples with this contraction at the earliest, it will mitigate the long term damage.
Talking about the state of the informal economy, which the GDP numbers haven’t captured, Soz said that ever since demonetisation, no expert has fully been able to assess the damage done to the informal sector in India.
He added that the COVID-19 induced lockdown has only worsened India’s informal economy. Calling the current economic situation a “dire emergency”, Soz says that we cannot just rely on government experts to come out of this contraction. “Everybody needs to put their minds together”, he said.
Soz added that nobody is ready to talk about India’s banking sector crisis. He asks what the BJP did to mitigate the bad loan problem in India. Soz also called the Centre's recent GST position “very dishonest”. “Somehow the Government of India seems to think that this [State finances] is their [states’] problem, not ours”, he said.
According to Soz, the decreasing government spending is “shameful” and he believes that the current situation is going to cause a lot of “grief” and “harm” to India.
Like our work? Click here to support The Wire: https://thewire.in/support
The founding premise of The Wire is this: if good journalism is to survive and thrive, it can only do so by being both editorially and financially independent. This means relying principally on contributions from readers and concerned citizens who have no interest other than to sustain a space for quality journalism. As a publication, The Wire will be firmly committed to the public interest and democratic values.
We publish in four different languages!
For English, visit www.thewire.in
for Hindi: http://thewirehindi.com/
for Urdu: http://thewireurdu.com
for Marathi: https://marathi.thewire.in
If you are a young writer or a creator, you can submit articles, essays, photos, poetry – anything that’s straight out of your imagination – to LiveWire, The Wire’s portal for the young, by the young. https://livewire.thewire.in/
You can also follow The Wire’s social media platforms and engage with us.
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