Myth of Economic Revival

Reports of India conquering extreme poverty in newspapers a few days back appeared as a pleasant surprise. The surprise was all the greater as it was contrary to what anybody could see around oneself. Unemployment is at its peak because of a number of factors climaxed by the effects of two years of the covid pandemic and the resultant lockdowns.On closer scrutiny, found that the cheering news was based on a paper prepared for the International Monetary Fund, IMF, by a group of economists. The economists included apologists of the current ruling dispensation headed by Prime Minister Narendra Modi. One of them had defended demonetisation as the biggest economic reform of the current era.
So one can assess for oneself how credible the views of such a group would be. Interestingly, the World Bank has come out with a report downgrading the Indian economy from the level of a developing one and putting India in the category of countries like Pakistan and the like, which are facing acute economic hardship.
Reports say, with loss of confidence in the economic management of the country, people have cut down spending on every day items. The latest report of trade intelligence firm Bizom, which tracks more than 70 lakh general stores, says, sales of everyday products is plummeting. Hit by rising prices, people have reduced spending on everyday items, from toothpastes to soaps etc. Companies have raised prices of nearly everything, from packaged noodles to toiletries.
And all the time, the government is busy protecting its own finances, raising prices of petroleum products and the like. There also has been no meaningful move to provide relief to the lower and middle classes, especially those who depend on salaries for survival. The prospects of the economy reviving look bleak in the current circumstances. The government appears bent on its disastrous tactic of just collecting more money rather than increasing the purchasing power of the people.

(Writer is a political Analyst. He is retired DG, AIR, News))