Posted on September 7, 2019, 5:14 PM IST
Key Issues of the Economic Plunge during the 100 Days of Modi 2.0
Even as the nation celebrated the abolition of Triple Talak and Article 370 in the Kashmir valley, there has been a growing discontent among economists on the emerging dismal trends in the Economic sector.
The highlight being a 5% downward slide in the economic growth in the last six year projections. To boost the dying economy government later announced the merger of PSB’s bring their total number to 12 from 27. The plunge in the Gross Domestic Product (GDP) growth is due to a sharp deceleration in the manufacturing sector and sluggish agriculture output, according to official data.
The sluggish growth in the economy has plunged auto sales in the country. Leading automobile giants like Maruti Suzuki announced production cut and lay-offs.
Continuing on a rough weather, Maruti Suzuki, Hyundai and three other auto giants confirmed a double-digit reject in sales in July. It has been noted that the domestic sales are down 36.3 percent at 98,210 units in July as compared to 1,54,150 units during the same period the previous year.
On 4th September, Maruti Suzuki announced the shutting down of its Gurugram and Manesar plants in Haryana for two days. The company alleged it would halt manufacturing operations at the two manufacturing facilities on 7 and 9 September. Popular moped group TVS too has joined in and insisted that it will halt productions for two days at its Pandi factory in Tamil Nadu. Due to such dire situations job cuts have become a mounting tension on lakhs of employees in the automobile sector. 300 auto dealer have already shut their shops and risked a meltdown in the job market.
Subsequently real estate has also been hit and a record slump has been observed in people investing their income on new houses in major cities.
The rupee experienced a downward spell primarily due to crude oil price rise, foreign fund outflows and US-China trade tensions.
Since 30 May this year, the rupee hit its peak of 68.42 (5 July) and the lowest was recorded at 72.42 (3 September) against the US dollar. The rupee closed at 71.72 against dollar on Friday. The domestic currency depreciated by 3 percent in 100 days of Modi 2.0.