Press Briefing on Indian Economy in AICC (English) – 3-January-2019

Statement Issued byDr Abhishek Manu Singhvi, Spokesperson, AICC

Modinomics + Jaitleynomics = Jumlanomics!

Economy in dire straits- Countdown for Modiji’s Exit has begun!

Economy is Sinking, Finance Minister is defending Defence Deals !

New investments in India plunge to a 14-year-low

It is very clear that the BJP is employing a scorched earth policy, fearing their impending loss in the Elections. In the past 4 years, Demonetisation, Gabbar Singh Tax and sheer fiscal illiteracy on the part of the Government has damaged the economy beyond recognition. Lowest Capital Formation, depreciating rupee, rising fuel prices and allied inflation are just some of the few gifts that the BJP has given the nation under their program of ‘acche din”. Now, their mismanagement has brought us one more laurel in the form of investments hitting a 14-year low.

  • Investments in the just-ended December quarter fell to a 14-year-low, fresh data from the project-tracking database of the Centre for Monitoring Indian Economy (CMIE) shows. Indian companies announced new projects worth ₹1 trillion in the December quarter, 53% lower than what was announced in September quarter, and 55% lower than the year-ago period.
  • The sequential decline in capex announcements was led by a sharp decline in new project announcements by the private sector. New private sector projects fell 62% in the just-ended December quarter compared with the September quarter, and 64% compared with the December quarter of FY18.
  • New public sector projects also declined compared with the September quarter of FY19. Fresh investment announcements in the public sector fell 37% on quarter and 41% on year to ₹50,604 crore—the lowest level since December 2004.The decline in fresh investments was across the board, with all major sectors witnessing a fall.

NPA’s in Mudra Loans

A government which cannot provide jobs is seen asking people to sell pakodas, while also selling pipe dreams of great Start Up India, Stand Up India etc and finally likening the provision of Mudra loans to employment. The Modi Sarkaar when questioned on jobs always speaks of its Mudra loan scheme being the panacea for all unemployment ills, while new date has revealed that this scheme is much like the other; much ado about nothing.

  • Public sector banks have seen a steady rise in the amount of Mudra loans turning into non-performing assets (NPAs) over the last three years. The amount of Mudra loans given by state-owned banks that turned into NPAs rose to Rs 7,277.31 crores in 2017-18, nearly double of Rs 3,790.35 crore of NPAs recorded in 2016-17, according to finance ministry data.
  • As reported by Public Sector Banks (PSBs), total Non-Performing Assets (NPAs) for loans extended under Pradhan Mantri Mudra Yojana during the last three years were Rs 596.72 Crore (2015-16), Rs 3,790.35 Crore (2016-17) and Rs 7,277.31 Crore (2017-18) respectively. PMMY NPAs as on 31st March, 2018 for PSBs were 3.43% of the amount disbursed under the scheme,” Shiv Pratap Shukla Minister of State in the finance ministry said in reply to a question in the Lok Sabha.

Bank Fraud at All Time High

It is well known that the modus operandi of bank fraudsters has been “fleece and flee” while the government looks on in silence or worse, aids these fraudsters to escape. From family members representing such fraudsters, Ministers meeting fugitives before they leave and the government even pardoning loans of big corporates while refusing to do so for farmers, the BJP has been a government for crony capitalists.

  • Bank Loot Fraudsters have looted Rs 41,167.7 crore from the banking system in 2017-18, a sharp jump of 72 per cent from Rs 23,933 crore the previous year, despite “stringent monitoring and vigilance”, according to data released by the Reserve Bank of India (RBI).
  • There were 5,917 instances of bank fraud in 2017-18 as against 5,076 cases the previous year, show the data released Friday. The instances of fraud have been rising over the last four years — by four times from Rs 10,170 crore in 2013-14.

Large-value frauds involving Rs 50 crore and above constituted about 80 per cent of all the frauds reported this year. Significantly, 93 per cent of fraud cases worth more than Rs 1 lakh occurred in PSU banks while private banks accounted for six per cent.

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