Page 28 - 30NOV2019EA

Special Report

he State Bank of India (SBI) has joined all other global tinues to stress that economic slowdown is cyclical in nature
agencies — the ADB, World Bank, OECD, RBI and the and a recovery will soon be visible, high frequency data sug-
IMF — in downgrading India’s financial year 1920 gests otherwise. Interestingly, the prime minister Narendra
growth rates. The SBI has said in a report released Modi during the Golden Jubilee of the Aditya Birla Group in
T on November 12, 1920, “Based on our composite Thailand, just days before the release of SBI report had said that
leading indicator that suggests the GDP growth to slow down he can say with full confidence that “this is the best time to be
further from 5 per cent in Q1 of FY20 to 4.2 per cent on account in India!”
of low automobile sales, deceleration in air traffic movements, He had claimed that in today’s India, many things are rising
flattening of core sector growth and declining investment in and many are falling. ‘Ease of Doing Business’ is rising and so
construction and infrastructure.” is ‘Ease of Living.’ FDI is rising. Our Forest Cover is rising. The
The second quarter GDP growth may further lower down number of patents and trademarks are rising. Productivity and
to 4.2 per cent on low automobile sales, deceleration in air traf- efficiency are rising. Pace of infrastructure creation is rising.
fic movements, flattening of core sector growth and declining Number of people getting top quality healthcare is rising. At
investment in construction the same time, Number of taxes
and infrastructure, and the are falling. Tax rates are falling.
growth forecast for FY20 has Is this Red-tapism is falling. Cronyism is
now come down to 5 per cent falling. Corruption is falling. The
from 6.1 per cent earlier, an SBI corrupt are running for cover.
report said. India’s GDP was al- Middlemen in the corridors of
the maximum rainfall of 129 per the in the last five years. This is almost
power are history.
ready at the 6-year lowest of 5
per cent in the first quarter. The
India received $286 billion FDI
SBI said “Among meteorologi-
half of the total FDI in India in the
cal divisions, Central India and
last twenty years. 90 per cent of
Southern Peninsula received
provals. And 40 per cent of this
cent and 116 per cent of their LPA, this came through automatic ap-
respectively. Excess Monsoon is Green Field Investment. This
rains and the floods caused by best shows that investors are taking
them had affected the Kharif a long term call on India. India’s
crops in many states, including growth trajectory is reflected in
Madhya Pradesh, Maharashtra, several ratings. We are among
Gujarat, Karnataka and Punjab. the top 10 FDI destinations as per
While 40 to 50 per cent soya- time to
UNCTAD Moved up twenty four
bean crop has been hit in Madhya places on the Global Innovation
Pradesh, which is the biggest pro- Index of WIPO in five years. But,
a negative impact on the agri- be in jumped 79 places in the World
ducer of the oilseed, 30 to 40 per
there are two of them I want to
cent of the groundnut and up to
talk about specially. India has
30 per cent of cotton crops have
Bank’s ‘Ease of Doing Business’
been affected in Gujarat”.
rankings in five years. From 142
“As these states are major
agrarian states, so this could have
in 2014 we are 63 in 2019. This is
cultural growth. Considering all a massive achievement . For the
third year in row, we are among
these domestic parameters along the top ten reformers.
with the global downturn, we now India? The other is India’s improved
foresee a GDP growth at 5 per cent ranking in the World Economic
in the current fiscal,” the report Forum’s Travel and Tourism Com-
said. “We expect Q2GDP growth at petitiveness Index . From 65 in
4.2 per cent. Our acceleration rate There is a paradox in what the hard facts 2013 we are ranked 34 in 2019.
for 33 leading indicators at 85 per This jump is among the biggest.
cent in October 2018 is down to indicate about the economy and what the The number of foreign tourist
just 17 per cent in September 2019, government claims. The only solution is arrivals have also gone up by 50
with such decline gaining traction per cent. India is now pursuing
from March 2019. to boost consumption via a stimulus given another dream — to become a $5
Even as the government con- directly to people, finds tehelka bureau trillion economy. When my Gov-
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