The Congress on Monday cited a set of Reserve Bank of India (RBI) data to argue that the central government must acknowledge the “acute slowdown” and asked to put the “economic mess” in order.
Addressing a press conference, newly appointed spokesperson Supriya Shrinate said RBI’s data clearly showed that commercial credit declined by around 88%.
Between April 2019 and September 2019, said Ms. Shrinate, credit has collapsed indicating a stalling of economic activity.
The Congress spokesperson also raised questions over the growth rate of 5%, saying the question is “how are we growing without this credit”.
“We would want the data to be mulled upon. We need to understand it. In the last one year, fund flow to the commercial sector is down by 88%, according to a new RBI data. Last year, this figure was at Rs 7.36 lakh crore now it is around Rs 91,000 crore,”she said.
“This is happening despite RBI cutting repo rates. Repo rate is down by 1.35% from January to now. Despite that people are not taking credit because they’re not convinced that they can do economic activity with this credit because people are insecure about their jobs,”Ms. Shrinate added.
‘Need bold reforms’
Arguing that the government’s piecemeal approach won’t work, the Congress leader urged a comprehensive approach.
“The RBI conducted a consumer confidence survey, it is at a 6-year low in September. People’s faith in the Indian economy plummeted to a 6-year low in the month of September and over 50% of the people are convinced that jobs will no longer be created,” she said.
“You need to acknowledge the problem, you need to accept that we are in an acute slowdown and then you need to have a comprehensive solution, you need to have bold reforms, you need to justify your political mandate,”she added.