Our prime minister introduced various policies which were termed as a masterstroke, some policies were actually beneficial. But due to some policies, there was a slowdown in India’s GDP. Here are some policies we need to look at.
Demonetization had a lot of long-lasting negative effects on the economy.
Demonetisation
On 8 November 2016, the Government of India announced demonetization. According to this, all Rs.500 and Rs.1000 banknotes of the Mahatma Gandhi series were demonetized.
It hoped to create a cashless economy. To finish counterfeit notes from the market. To help reduce anti-social activities and their finances.
Indian economy shrank 1.5% as said by Dr. Manmohan Singh Ji. Counterfeit notes came into the market within a week. In a speech, Modi Ji told that black money will not be returned by this act, they would easily get the ration of black money.
But, only 0.7% money was not returned that indicates that people converted their black money into white and deposited it in the bank.
GST ( Goods and Services Tax)
In July 2017 Modi Ji launched GST. Basically, GST is not a direct tax it is an indirect one that is used in India on the supply of goods and services.
The main aim of the GST policy was to create a common market in India.
This was specially made for India’s large informal sector – which employs the vast majority of people outside of agriculture.
People were very confused about this new policy, it was not handled properly when it was implemented. While the effect of GST put the economy down, it is hoped that it would be beneficial.
Agriculture
Around 50% of India’s population is dependent on agriculture. The agriculture sector experienced a long period of declines in rural incomes since 2011, leading to a rustic crisis.
The cause of the crisis is due to Modi’s government’s hesitation to increase minimum support prices on crops like rice, wheat, pulses. He also promised to improve the situation of farmers.
But, he made it worst due to the farmer’s bill. Firstly, the bill was passed inappropriately in a non-democratic way. As the opposition asked for a division vote and the chairman didn’t listen and the bill was passed by voice vote.
Moreover, in Haryana and Punjab, farmers are protesting against the law and the media is not covering it as the media is not free and are corrupt.
The economic policies of the Manmohan Singh government were miles ahead of Modi’s.
Jobs And Unemployment
Due to Modi Ji, there is only 2 lakh per year jobs in India, whereas the criticized Manmohan Singh Ji while during his tenure there were a total of 10 lakh job per year. Unemployment was the highest in 45 years in 2019. The quarterly growth rate of GDP was -23.9%.
Due to Modi Ji, all sectors are in negative and just agricultural sector is in positive because people whose jobs were gone, they shifted to the agricultural sector.
Is Modi A Good Economist?
In my opinion, Modi is not a good economist. Due to his policies, there was a slowdown in India’s growth rate and due to this pandemic conditions got even worst as unemployment increased, poverty increased, suicides and depression increased. Some policies were actually good and it could have improved the condition of India but implementation was not good, to make laws it’s quite easy the main purpose lies in implementing it, what’s the use of making a law if it’s not been obeyed.
All the qualified and intelligent economists have resigned and Modi’s people have been given control with a fake degree. It was noted that Delhi had really good growth from other states as Kejriwal is an intelligent person and he took the required steps to improve the condition of Delhi.
Manmohan Singh Ji was an efficient prime minister as, during his period, India’s GDP was the best and was 9.7% even in the Great Recession of 2008, he maintained the growth.
There was a controversy that if Manmohan Singh Ji was our prime minister in this pandemic situation, our GDP growth rate would have been better. Modi Ji has always quickly taken decisions that are blindly termed masterstrokes, he should think about what can be the consequences more.
India has been in the hands of a person who just wants people to deliver a speech and not work, whereas Manmohan Singh Ji was an economist, intellectual, and the best prime minister of India.