Bihar Deputy Chief Minister and Finance Minister Sushil Kumar Modi on Sunday accused the opposition parties of creating panic about the state of the economy in the country, saying the current economic slowdown was a recurring ‘cyclic’ slowdown during the months of ‘Saawan-Bhado’.
Sushil Kumar Modi took to Twitter and claimed that the downturn was an annual occurrence, amid India's GDP growth rate slowing to a 6.5-year low: “Usually every year there is a cyclic slowdown in the economy during Saawan-Bhado (the fifth and sixth months in the Hindu calendar), but this time some political parties are creating noise over it to vent their frustration after the loss in elections.”
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According to government data, the economic growth slowed to 5% in April to June quarter from 8% a year ago. The BJP leader claimed that the slowdown hasn't affected Bihar and the Narendra Modi government is taking appropriate measures to control the economy. "Central government's announcement of 32-point relief package and the merger of 10 banks will increase the lending capacity of banks whose effects will be visible in the next quarter," he tweeted. "The slowdown has not affected Bihar, there is no fall in sales of vehicles here. The Centre is soon going to announce the third package," he added.
Many opposition parties, including the Congress, have blamed the Central Government for not being effective in handling the economy. On Sunday, former Prime Minister Manmohan Singh blamed “all-round mismanagement” by the Narendra Modi government for the slowdown, and asked it to “put aside vendetta politics” and consult with “all sane voices and thinking minds” to save the economy. He also said that the current state of the economy is “deeply worrying”.
Finance Minister Nirmala Sitharaman on Sunday said that she has been meeting the industries and talking suggestions to tackle the industries. She also dismissed fears of job losses following the proposed merger of public sector banks. While addressing a news briefing, the FM said that not even one employee shall be removed following the amalgamation. She announced other reforms such as removal of a tax surcharge on foreign office portfolios and recapitalization plans for banks worth Rs 70,000 crores. She also said that the focus was on reviving the automobile industry last week.