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Demonetisation, improper implementation of GST led to deceleration in economic growth: Jairam Ramesh

Updated: Sep 22, 2017 07:20:53am
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Demonetisation, improper implementation of GST led to deceleration in economic growth: Jairam Ramesh

Chennai, Sept 22 (KNN) Demonetisation, improper implementation of GST and wrong exchange policy have led to deceleration in economic growth, said former Union Minister Jairam Ramesh adding that the small scale industries and rural sectors have been severely crippled.

Ramesh, a former Union Minister and a Member of Parliament, said this while addressing the 107th annual general meeting of the Southern India Chamber of Commerce and Industry (SICCI).

He said the challenges facing Indian economy should be addressed by serious and meticulous work, not by slogans, branding and marketing.

“Management of economy is a serious matter and hence, the issues affecting economic slowdown have to be addressed much more seriously and systematically now than the past,” he said.

Ramesh said India was facing ‘GDP growth recession’ as GDP growth decelerated for six consecutive quarters.

“Any professional assessment of today’s economy would have to conclude that the slowdown that we have is not statistical, but structural and not a short-term blip. It is something that is embedded in our system,” he said.

According to him, demonetisation, improper implementation of GST and wrong exchange policy have led to deceleration in economic growth. The biggest stress has been in the informal sector of the economy. Small scale industries and rural sectors have been severely crippled.

“On the one side, demonetisation took place and on the other, MSP (minimum support price) increases have not kept pace at the rate at which they should have,” he added.

He stressed that India was still a big informal economy, as 50 per cent of the GDP and 92 per cent of employment came from informal sector.

Ramesh pointed out that the country needed to achieve three things — rapid, inclusive and sustainable economic growth. But it should be achieved without causing rise in inequality and damaging the environment.

“We need eight per cent GDP growth. But, growth should also arrest inequality. We have been able to reduce poverty, but inequality has been rising in the past two decades. Also, high GDP growth should not lead to polluting our rivers and damaging the ecosystem.”

COMMENTS

  1. Dr Mrs Sushma  Joiya
    Dr Mrs Sushma Joiya 22/09/2017 12:40 PM

    GDP of a country can not be raised by sucking the blood of poor voters.;

    Reply to this comment

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