[<<Congress vice president Rahul Gandhi took to Twitter on Wednesday to
deliver a caustic denouncement of the Narendra Modi government by saying
"the wings have fallen of our plane" so the country needs to fasten its
seat belt and "take brace position".>>
(Excerpted from the report at sl. no. I below.)

<<The words “imminent crisis”, “economic collapse” and “serious downside
risks” are floating around. Supporters of the government, including one
that has been put on the new advisory council, have pointed out that this
year’s GDP figures are unlikely to match even the bad years of the previous
government. Experts point out that all four growth engines of the economy
are sputtering. Others are going back to look at what went wrong.>>
(Excerpted from the comment at sl. no. II below.)

<<However, even as the Modi government denies the crisis publicly, it seems
it is slowly waking up to it privately. The Union government reconstituted
the Economic Advisory Council, a United Progressive Alliance body that was
abolished by Modi in 2014. There is also talk of a stimulus package to prop
up the economy. However, given the scale of the crises, a disjointed
response will not be enough. The Modi government must acknowledged the hole
the country is in now and clearly tell the peoples of India how he plans to
help it get out of it.>>
(Excerpted from the comment at sl. no. III below.)]

I/III.
http://timesofindia.indiatimes.com/india/rahul-gandhis-caustic-tweet-on-state-of-economy-under-modi-fasten-your-seat-belt-wings-have-fallen-off-our-plane/articleshow/60852354.cms

Rahul Gandhi's scathing tweet on state of economy under Jaitley: 'Fasten
your seat belt...wings have fallen off our plane'

TIMESOFINDIA.COM | Updated: Sep 27, 2017, 12:39 IST

HIGHLIGHTS
Rahul was referring to a scathing indictment of the BJP-led government and
of finance minister Arun Jaitley by one of the BJP's own - Yashwant Sinha
Sinha then said, among other things, that demonetisation was "an
unmitigated economic disaster"
he also said the the Goods and Services Tax rollout was "badly conceived
and poorly implemented"

Congress vice president Rahul Gandhi. (TOI Photo)

Rahul Gandhi's scathing tweet on state of economy under Jaitley: 'Fasten
your seat belt...wings have fallen off our plane'

NEW DELHI: ***Congress vice president Rahul Gandhi took to Twitter on
Wednesday to deliver a caustic denouncement of the Narendra Modi government
by saying "the wings have fallen of our plane" so the country needs to
fasten its seat belt and "take brace position".*** [Emphasis added.]

Rahul was referring to a scathing indictment of the BJP-led government and
of finance minister Arun Jaitley by one of the BJP's own - Yashwant Sinha,
a former finance minister himself. Sinha wrote an article for a leading
national daily criticising Modi and Jaitley.
"I shall be failing in my national duty if I did not speak up even now
against the mess the finance minister (Jaitley) has made of the economy,"
was Sinha's opening sentence.

Sinha then said, among other things, that demonetisation was "an
unmitigated economic disaster" and the Goods and Services Tax rollout was
"badly conceived and poorly implemented".

Then Sinha delivered his denouement.

"The Prime Minister claims that he has seen poverty from close quarters.
His finance minister is working over-time to make sure that all Indians
also see it from equally close quarters," concluded Sinha.

That's what Rahul was referring to in his tweet, in which he also named the
finance minister (FM).

His tweet said: "Ladies & Gentlemen, this is your copilot & FM speaking.
Plz fasten your seat belts & take brace position.The wings have fallen off
our plane".

Sinha called Jaitley "a lucky finance minister", said PM Modi is "worried"
and added that his own views reflect "the sentiments of a large number of
people in the BJP and elsewhere who are not speaking up out of fear. "

Earlier, another former finance minister took to Twitter to talk about
Sinha's column - the Congress Party's P Chidambaram.

 Follow
P. Chidambaram ✔ @PChidambaram_IN
Yashwant Sinha speaks Truth to Power. Will Power now admit the Truth that
economy is sinking?
8:19 AM - Sep 27, 2017
 242 242 Replies   1,335 1,335 Retweets   2,646 2,646 likes
Twitter Ads info and privacy

Chidambaram said Sinha's "first truth" was about what the latter thinks is
the actual growth of the country - lower than what the government has been
touting.

 Follow
P. Chidambaram ✔ @PChidambaram_IN
TRUTH 1: "The growth rate of 5.7% is actually 3.7% or less " says Yashwant
Sinha.
8:30 AM - Sep 27, 2017
 252 252 Replies   2,695 2,695 Retweets   4,254 4,254 likes
Twitter Ads info and privacy

Here's what Sinha wrote about that:
"And please note that the methodology for calculation of the GDP was
changed by the present government in 2015 as a result of which the growth
rate recorded earlier increased statistically by over 200 basis points on
an annual basis. So, according to the old method of calculation, the growth
rate of 5.7 per cent is actually 3.7 per cent or less."
Sinha's "second truth" according to Chidambaram, was the former saying is
the "raid raj" the Modi government is establishing.

 Follow
P. Chidambaram ✔ @PChidambaram_IN
TRUTH 2: "Instilling fear in the minds of the people is the name of the new
game" says Yashwant Sinha.
8:30 AM - Sep 27, 2017
 72 72 Replies   886 886 Retweets   1,458 1,458 likes
Twitter Ads info and privacy

TOP COMMENT
Congress has already crashed the plane several times so no big issue if the
wings are lost.
Srinivas Injeti

"The government has asked the income tax department to chase those who have
made large claims. Cash flow problems have already arisen for many
companies specially in the SME sector. But this is the style of functioning
of the finance ministry now. We protested against raid raj when we were in
opposition. Today it has become the order of the day... Instilling fear in
the minds of the people is the name of the new game."

Click here to watch the video

II/III.
https://scroll.in/article/852067/dismiss-yashwant-sinha-as-a-case-of-sour-grapes-but-you-can-t-ignore-industry-and-data

INDIAN ECONOMIC GROWTH

Dismiss Yashwant Sinha as a case of sour grapes, but you can't ignore
industry and data
The former finance minister might just be enjoying attacking Arun Jaitley,
but he is only echoing what top business leaders are saying.

by  Rohan Venkataramakrishnan

Published Yesterday · 01:04 pm

Dismiss Yashwant Sinha as a case of sour grapes, but you can't ignore
industry and data
World Economic Forum/Creative Commons

Former finance minister and Bharatiya Janata Party leader Yashwant Sinha
minced no words in an op-ed published on Wednesday. Writing in the Indian
Express, Sinha said he would be “failing in my national duty if I did not
speak up even now against the mess the finance minister has made of the
economy”. Claiming his views were shared by many within the BJP who might
be afraid to speak out, Sinha said that Finance Minister Arun Jaitley had
wasted a golden opportunity and instead steered the Indian economy into
crisis.

“Economies are destroyed more easily than they are built,” Sinha wrote.
“The prime minister claims that he has seen poverty from close quarters.
His finance minister is working over-time to make sure that all Indians
also see it from equally close quarters.”

The former finance minister also pointed out that things are worse even
than they seem. While the 5.7% Gross Domestic Product growth figure for the
quarter ending June may have been the lowest in three years, he brought up
the fact that under the previous GDP methodology, it would have been 3.7%.
“A revival by the time of the next Lok Sabha election appears highly
unlikely. A hard landing appears inevitable. Bluff and bluster is fine for
the hustings, it evaporates in the face of reality.”

🤔 pic.twitter.com/VW7LpESm0L

— Kabir Taneja (@KabirTaneja) September 27, 2017

Sour grapes
This is not the first time that Sinha is speaking out against the current
government, which early on decided not to include him in the Cabinet
despite his experience. In January 2016, for example he said Modi and his
government would be “consigned to the dust” by the people of India in the
2019 Lok Sabha elections, although he later backtracked. He has criticised
the government for its handling of Pakistan and China, as well as the
Kashmir issue. And in 2015, along with fellow sidelined senior BJP leaders
LK Advani and Murli Manohar Joshi, Sinha issued a statement blaming the
party’s Bihar loss on its top leadership, a reference to Modi and BJP
President Amit Shah.

In this, Sinha echoes Arun Shourie, another former minister from the BJP
who few in the current dispensation listen to. Shourie, despite his earlier
support for Modi, has spent the last few years attacking the government,
calling it “Congress plus cow”. While many in the Opposition latched on to
these remarks, they gained little currency within the BJP or indeed, with
the public at large, seen by many as sour grapes from past-their-prime
leaders being sidelined by a younger administration.

Actual data
But Sinha’s comments this time might be different, even if they are also
tinged with schandenfreude aimed particularly at Arun Jaitley.

For one, the former finance minister is talking about actual data, not
taking a moral or political position against the government. The
administration might spin its way around the following remarks, but it
would be hard to actually debunk any of this.

“So, what is the picture of the Indian economy today? Private investment
has shrunk as never before in two decades, industrial production has all
but collapsed, agriculture is in distress, construction industry, a big
employer of the work force, is in the doldrums, the rest of the service
sector is also in the slow lane, exports have dwindled, sector after sector
of the economy is in distress, demonetisation has proved to be an
unmitigated economic disaster, a badly conceived and poorly implemented GST
has played havoc with businesses and sunk many of them and countless
millions have lost their jobs with hardly any new opportunities coming the
way of the new entrants to the labour market.”

Second, the government has itself acknowledged this. After six consecutive
quarters of declining growth, proof from the Reserve Bank of India that
demonetisation has not been worth the pain and costs it inflicted on the
economy and signs of discontent from the people, Modi has assembled a set
of five economists to be part of the reinstated Prime Minister’s Economic
Advisory Council. By itself this is an admission of Modi and Jaitley’s
failure to boost the Indian economy even at a time of benign global
conditions.

Not alone
Third, it is not just Sinha saying it. Of course, many in the Opposition
will happily jump on his remarks and assert that they have been saying the
same all along.

Yashwant Sinha speaks Truth to Power. Will Power now admit the Truth that
economy is sinking?

— P. Chidambaram (@PChidambaram_IN) September 27, 2017
But you would expect that from them. Maybe the voices that speak louder
here are from industry, which tends to usually stand behind the government
in power unless absolutely pushed into a corner.

L&T Group Executive Chairman Anil Manibhai Naik said that the economy is
unlikely to revive for the next two years. Rural markets have yet to
recover from the hit of the Goods and Services Tax, demonetisation and
volatile commodity prices, said Hindustan Unilever Managing Director Sanjiv
Mehta, quoting research agency Nielsen. The State Bank of India in a report
said that the “free fall” of GDP numbers was not transient, as some in the
BJP have sought to suggest, but structural. L&T Chief Financial Officer
Shankar Raman said he does not expect to see the private sector coming back
for the next couple of years.

***The words “imminent crisis”, “economic collapse” and “serious downside
risks” are floating around. Supporters of the government, including one
that has been put on the new advisory council, have pointed out that this
year’s GDP figures are unlikely to match even the bad years of the previous
government. Experts point out that all four growth engines of the economy
are sputtering. Others are going back to look at what went wrong.***
[Emphasis added.]

Clearly, Sinha is not alone. In fact, he seems almost late to the game,
building on all that has already been said about the economy, and simply
adding both an attempt to lay blame – at Jaitley, and through him, Modi –
as well as indicate that this criticism is also emerging from within the
BJP, though most are afraid to say so openly. In that sense, Sinha this
time is not tipping us off to something that has been an undercurrent, he’s
simply putting on paper what others have been saying for a while. And that
should worry the BJP.

III.
https://scroll.in/article/852169/the-daily-fix-the-modi-government-must-stop-being-in-denial-about-the-economic-crisis

The Modi government must stop being in denial about the economic crisis

by  Shoaib Daniyal

Published 4 hours ago

Own up
On Wednesday, former Union finance minister and Bharatiya Janata Party
member Yashwant Sinha’s published a scathing indictment of the Central
government’s economic policy. While Sinha might have been motivated in part
by pique ­for having been sidelined by Prime Minister Narendra Modi, there
is little doubt that the argument he made and the data he presented was
sound. Curiously, there was little enthusiasm from the BJP to respond to
Sinha’s points. Union home minister Rajnath Singh countered simply by
saying, “The whole world admits that India is the fastest growing economy
in the world. No one should forget this fact”. This “fact” was in fact
denied by none other than the International Monetary Fund, which in January
of this year announced that – thanks to demonetisation – India was not the
world’s fastest growing economy any more.

This is not the first time the BJP has simply denied that the country is
undergoing an economic crisis. Union finance minister Arun Jaitley
explained away the slow down in growth during the first quarter of 2017-’18
as due to the pre-Goods and Services Tax destocking of goods. BJP President
Amit Shah in turn fobbed off the slowdown by saying it was due to
“technical reasons”.

However, the slowdown is quite real. Growth has been falling continually
since the quarter ending March 2016. In fact, as per the old method of
calculating Gross Domestic Product, the growth in the first quarter of
2017-’18 was a paltry 3.7% – a far cry from the 7-8% India had got used to
under Prime Minister Manmohan Singh. Private investment and exports have
fallen precipitously. Defying Prime Minister Modi’s “Make in India” mantra,
manufacturing has ground to a halt. It grew by 1.2% in the first quarter of
2017-’18. Agriculture is in distress across nearly every state in the Union
– leading to multiple farmer agitations. The crises in employment is acute.
Alarming for a country of India’s size and youth bulge – 12 million people
enter the workforce each year – the nation is actually losing jobs on a net
basis.

So bad is the slowdown that Indian industry – which rarely makes statements
that could be construed as political – has spoken up to complain. Fast
moving consumer goods behemoth Hindustan Unilever’s Chief Executive Sanjiv
Mehta said that rural India is yet to recover from the blow of
demonetisation while Larson and Toubro’s chief was clear that there would
be no recovery for at least the next two years.

What makes the Modi government look even worse is that this downturn is
occurring against the backdrop of low crude oil prices globally. Yet,
rather than build on this stroke of good luck, the Union government shot
itself in the foot with first demonetisation and then the Goods and
Services Tax.

***However, even as the Modi government denies the crisis publicly, it
seems it is slowly waking up to it privately. The Union government
reconstituted the Economic Advisory Council, a United Progressive Alliance
body that was abolished by Modi in 2014. There is also talk of a stimulus
package to prop up the economy. However, given the scale of the crises, a
disjointed response will not be enough. The Modi government must
acknowledged the hole the country is in now and clearly tell the peoples of
India how he plans to help it get out of it.*** [Emphasis added.]


-- 
Peace Is Doable

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