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crore into government owned banks in undermined the demand in the month ture and allied activities was estimated at
order to boost lending and improving of August and unfavourable rate of 2.7 per cent. This was huge slide from 5
liquidity situation. It is projected by the exchange is adversely affecting the cost. per cent in 2017-18.
finance ministry that an additional Former prime Minister and noted In no other country of the world, such
liquidity to the tune of 5 lakh crore economist Dr. Manmohan Singh recent- large number of productive workforce is
through multiplier-effect and help ly commented on the downturn in In- employed, more appropriately put as un-
restore the pace of economic growth. dian economy. Otherwise reticent Singh deremployed and disguised employed in
The rollback of enhanced surcharge elaborated on the causes and remedies agriculture. Over the years, the contri-
on foreign portfolio investors (long and for reviving the economic growth. For a bution of agriculture to Gross Domestic
short-term capital gains arising from 5 trillion economy, the nominal growth Product of our country has shrunk from
transfer of equity) levied in the budget is rate should be close to 10-12 per cent till 56.5 per cent in 1950-51 to 51.7 per cent in
also an effort to revive the sentiments of 2024. A 6 per cent growth rate cannot to 15.7 per cent in 2009-10. Thus 58.2 per
investors to infuse fresh investments. drive up the economy from the current cent workforce in our country contrib-
size of $2.8 trillion to $5 trillion by 2024. utes only 51.7 per cent to the country’s
Ailing automobiles gross domestic product. This indicates an
The automobile sector, one of the major Agricultural distress alarmingly low per capita income from Indian economy. Even government’s and pulses, we resort to imports. The slowdown sunk into banking quagmire
employers in the organised business has Any discussion on Indian economy, farm sector and at the same time a wide own studies reveal (NSSO survey) that farming community perceives a bias of with bank after bank reporting colos-
been severely hit by the cyclic downturn without mentioning the performance gap between farm and non-farm income. a large section of farming community the government towards the urban mid- sal amount of losses due to scandalous
in demand. The industry was expecting and problems of agriculture sector is Another noticeable trend in agricul- is wary of agriculture as an occupation dle class at the cost of illiterate and poor transactions. Recent frauds in the bank-
a cut in GST on passenger and commer- ture is that the proportion of cultivators and wishes to quit agriculture. The NSSO farmers. ing sector that include Punjab National
cial vehicles from the prevailing 28 per in the rural population is on a declining study (2003), reported that 40 per cent of The 70th round of NSSO survey Bank, IL&FS,IDBI Bank, Laxmi Villas Bank
cent to 18 per cent to spur the demand The failure of mode whereas the proportion of agricul- Indian farmers expressed their desire to reported that average monthly agricul- and very recent Punjab and Maharashtra
through price reduction. But the policy government in creating ture labourers is on a rise. leave farming. The absence of alterna- ture income per household from various Cooperative Bank has pushed the econo-
makers did not take cognizance of the The slowdown is generally seen from tive employment is the reason behind sources is 6,426. Here, the question aris- my into deeper catastrophe.
demand of manufacturers. Neverthe- jobs has severely the lens of manufacturing sector but sticking to agriculture, albeit unviable for es is if half of the country’s population The Annual Report of Reserve Bank of
less, the FM deferred the decision to hike affected the demand the beginning of the demand slowdown them. is thriving on a monthly consumption India examines the frauds worth 71,000
the one-time registration fee on vehicles starts from rural India. With a broad base The initiative of government offering expenditure of 6,426 can we become a cr for the financial year 2018-19. This
till June 2020. Some other decisions like side and the widening of demand which is close to 50 per cent financial assistance to rural households US $ 5 trillion economy by 2024? is not the end of the story as the fresh
lifting of ban on purchase of vehicles by gap between demand of the market size, India cannot afford by offering an annual grant of 6000 frauds are unfolding with PMC scam
government departments and registra- to ignore the stagnation in agriculture. per households has failed to firm up the Muddled financial sector reported recently. The total proceeds of
tion of both electrical and internal com- and supply is the major Falling returns in agriculture and conse- demand or at least, there are no clear Another pillar of our economy, the crime involved are estimated to be 4,355
bustion vehicles are yet to fetch results. quent rising debts of the farmers disrupt signals of revival of rural demand. Post financial sector of the country is grap- crore. The retail depositors stare at un-
In the light of sharp decline in the cause of decelerated the income circle in the economy. the agricultural debt waivers (offered pling with liquidity crunch and piling certain future as money is stuck for over
sales of major automobile players in economic growth During the post reform period (Eco- in states of Maharahtra, Uttar Pradesh, non-performing assets. The collapse of a month.
India the Government’s incentives is less nomic reforms of 1991) the disinvest- Punjab, Telengana among others to miti- non-banking and banking institutions in A close scrutiny of banking frauds
for the one who needs more. The quar- ments by the government sector have gate rural distress) the rural economy has the recent pass has given a big jolt to the reveals a huge laxity on the part of bank
terly financial results of the market lead- unaccomplished. A sector that provides not been equated by a requisite amount not exhibited any encouraging signs. The economy. officials and monitoring agencies. The
ers exhibit that the sector is in doldrums. livelihood to more than half of country’s of private investment. A sustainable infusion of funds through MNREGA (Ma- The economy already reeling under requisite due diligence is not done by
The prominent players in this segment- population is in a severe jeopardy. model of job creation has evaded the hatma Gandhi National Rural Employ-
Maruti Suzuki India, Tata Motors, Mahi- To a large extent, it is a neglect of the ment Guarantee Act) and other welfare Table 3-Bank frauds in the recent past
ndra and Mahindra and Honda reported agriculture sector that is responsible for Table 2-Sliding contribution of Agriculture schemes have guzzled the funds without
a substantial decline in their sales in the the drying up of aggregate demand. The to GDP in India much outcome. The Moody’d Investor Year Financial institution e stimated Fraud
last quarter. half-hearted efforts of successive gov- Services recent report has also argued (in rs crore)
The drop in sales for these manufac- ernments over the years, have created Year Share of Agriculture that the slowdown in the consumption
turers is reported to be 20 per cent to 58 such forces in the rural economy those (GDP percentage) is driven by the financial stress among 2018 Punjab National Bank 11,400
per cent for different segments. Despite act and react on each other and trapped rural households and weak job creation. 2018 L&T Finance Holdings 816
the high discounts offered by the manu- the rural unskilled labour of our coun- 1950-51 55.7 The problems of agriculture sector are
facturers the auto-sector continues to try in poverty and backwardness for 1970-71 45.9 umpteen. The farm incomes suffer due to 2018 IDBI Bank 600
witness high de-growth. generations. 1990-91 34.0 volatility in the prices of commodities. 2019 Laxmi Vilas Bank 790
According to the top managements The growth rate of agriculture and al- 2000-01 24.7 These fluctuations are Achilles heel for 2019 Punjab and Maharashtra 4,355
of these companies, they expect a revival lied activities in the third quarter of 2018- 2006-07 19.54 the farmers. In order to keep inflation Cooperative Bank
in demand as the Finance Minister Nir- 19 (October-December) was registered 2008-09 16.48 under watch, the rising prices of com- Total Frauds in FY 2019 Banks included in RBI
mala Sitharaman has announced various at 2.7 per cent against 4.6 per cent in the modities are controlled by the govern- annual report 2019 71,500
measures to spur the demand. Albiet, the corresponding period during the last 2011-12 15.87 ment. On the other hand, in wake of a
floods in different parts of the country year. The annual growth rate in agricul- Source-Compiled from CSO and Economy Survey price rise, for instance, in case of onion Source-Compiled from RBI annual report and media reports

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