BJP leader Subramanian Swamy on Sunday, January 19, gave an interesting assessment of the state of the economy in the country. Taking to Twitter, Swamy said that there is an "abnormality" in the Indian economy, and went on to add, perhaps seriously, that "It takes brains to fail like this. Hubris"
Normally recession is not accompanied by inflation. But that is happening. Normally demand deficit is not accompanied by rising prices. But now we see this abnormality in the Indian economy. Sarcastically speaking, it takes brains to fail like this! Hubris!!— Subramanian Swamy (@Swamy39) January 19, 2020
The Consumer Price Index (CPI) data for December 2019 released by the National Statistical Office (NSO) showed the consumer inflation worsened to 7.35% as compared to 5.54% in November - an alarming rise given the RBI's self-mandate to keep it within the 4%(+-2) band. Following the trend, this became the third month in a row to have higher rates of consumer prices.
According to the first advance estimates released by the Centre on January 7, India's real GDP (Gross Domestic Product) growth during the financial year 2019-2020 is expected at 5% as compared to last year's 6.8%. This estimate is in line with the Reserve Bank of India's (RBI) own revised estimate in December. The economy grew by 4.5%, the lowest in six years, in the second quarter (July-September) of this fiscal in weakening from the previous quarter's 4.8 per cent.
The 2020 Budget, which will be presented by Finance Minister Nirmala Sitharaman, is being pegged as one that will have to serve dual purposes of driving industry investment, and also increasing consumption. Subramanian Swamy alludes to this in his remarks.
A few days earlier, Subramanian Swamy had triggered reactions by proposing that having the Goddess Lakshmi on Indian banknotes could help the economy.