News 8

News 8

10 ECONOMIC DRAWBACKS OF MODI GOVERNMENT

Tuesday,26th March,

Aurangabad. 

Real Interest Rate = Base Interest Rate - Rate Of Inflation

                  First, we look at real interest rates now. This is the difference between the base interest rate in the economy which could be the 10-year treasury or the State bank of India prime lending rate minus the rate of interest that's a real interest rate contrasted against the healthy sub - 5% mark during almost the entire UPA decade. Real interest rates have actually flashed bloodied red they've soared above 9 to 11%. Under Prime Minister Modi this has happened despite a benign inflation situation which simply proves, how this government has jumped at the nation's dwindling savings keeping real interest rates high and crowding out private investment. Now the second impact is in weak consumer demand that there it's no surprise that high-interest rates actually virtually killed consumer demand. Retail Auto sales declined by 8% in February over last year Maruti the overwhelming market leader cut production by 27% in March even two-wheeler manufacturers have scaled back by 15% year on year tractor sales have plummeted the latter by over 20 %. 

             

Decreasing the value of Rupee

   Domestic air passengers have shrunk by double digits in thus quarter exports have struggled since 2014 you'd be surprised to know that only in the fifth year only in the fifth last year of the Modi regime they are on track to post about 330 billion and that's just marginally ahead of the 330 billion dollars record set by the UPA in the financial year 2014. What we are also seeing is very weak core sectors growth 8 industries, electricity, steel, refinery products, crude oil, coal, cement, natural gas, fertilizers all of them have hit an eighteen-month low. We are also seeing the slowest profit growth for corporates in 5 quarters. Analysts have cut their earnings per share or EPS forecast for 151 out of 253 listed companies after the December quarters came out under the UPA. EPS growth got a negative shock in the post-Lehman crisis of 2008 and 9 but otherwise, growth was robust hitting the above the 20% mark in several years under prime minister Modi. They have a EPS growth was negative over two consecutive years and has only marginally been in double digits in other years we're also seeing banks whose balance sheets are quite ravaged to its credit, The Modi regime allowed RBI to undertake a transparent asset quality review in 2015 and that unearthed a shocking mess of bad loans these quadrupled under prime minister Modi's watch to over 10.6 lakhs crore that's 11.6% of aggregate bank assets even after 3.4 crore have written off the gross NPS will hit 10.3% this month non-food credit is lower than what it was in 2015.