When the BJP government came into power in 2014, PM Narendra Modi made lavish promises and struck the right chord with both domestic and international investors. The government promised to create millions of jobs, make it easy for overseas businesses to set up shop in India.
PM Modi has travelled extensively in the last 6 years with the main focus of meeting top executives in different countries and getting them to invest in India. Fast forward to 2020 and you will find that the Indian economy has plummeted significantly as the GDP is now expected to drop to 5 percent in the current fiscal – which is a 11 year low.
Market analysts say that the Indian economy hasn’t been this bad in the last 42 years and this is a huge black mark on the BJP government and PM Modi. Not only has he failed to deliver on his promises but worst still the economy has regressed under his governance and has left millions of investors in the lurch.
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To make matters worse, the central government has not been very willing to share any real time stats and the figures that were shared in the past have come under question of being doctored just to gain political points. Now, the National Statistical Office (NSO) has released some startling numbers confirming that the manufacturing sector which saw 6.9 percent in the last fiscal will drop to 2 percent in the current fiscal.
It’s not just the manufacturing sector that is suffering. The construction sector which saw an 8.7 percent growth in the last fiscal will drop to 3.2 percent this fiscal. The lack of job creation, the increase in unemployment rate and a lack of trust in Finance Minister Nirmala Sitharaman is not helping the economy.
There has also been a string of high profile banking scandals that has rocked the country and caused thousands of investors throughout India to lose money.
Focus Continues To Be On Religion
While economists and financial analysts continue to call on PM Modi and FM Sitharaman to do something to change things around in the financial sector, it appears that there are more important things at hand for the central government.
They are currently focusing on pushing a controversial Citizens Amendment Act (CAA) bill that has caused widespread protests and violence across India. India investors are now looking to cut and run as they don’t expect the markets to improve anytime soon.
