Yesterday, while wandering through my social media walls and
timelines, a thought suddenly stuck my usually slow and lazy brain. I felt that
our country might be passing through an economic emergency.
- The top most lawyer of the country was found blaming the top court for the economic slowdown in the country.
- The RBI governor was widely quoted for admitting that the extent of economic slowdown has surprised the central banker.
- The principal economic advisor was seen admitting that the current economic slowdown is unusual as it is for the first time that India is facing a demand led slowdown. Till now the "demand growth" was a constant in India's economic policies and business planning.
- The managements and analysts of automobile manufacturers were seen expressing serious concerns over short to medium term prospects of the industry.
- A former prime minister was seen criticizing the government for inept handling of economy and making some suggestions.
- A former minister and government nominated Rajya Sabha MP was seen criticizing the finance minister and implying that she may not be qualified for the job in a crisis like situation.
- The body language of the finance minister, while announcing a set of measures to lift the sagging economy in various tranches appeared unconvincing; as if she her is convinced that these measures are token and may not help the economy in any significant measure.
- The core inflation continues to be low indicating total lack of pricing power with the producers.
- The prospects of a sharp spike in global crude prices post attacks on Saudi Arab's oil facilities appears to have sent a shiver deep down the spine of many policy makers and market participants. Hopefully it appears that the damage may not be as much as anticipated earlier and Netanyahu's less than expected electoral performance may also have diminished the chance of a full escalation in the Persian Gulf.
- Media reports suggested that the residents Indian are sending money abroad under liberalized remittance scheme (LRS) at the fastest rate.
- A private equity fund till recently headed by a star banker has defaulted on its debt obligations in a bizarre case, raising the specter of a fresh round of NPAs for banks and mutual funds. Another entity of the beleaguered ADAG has filed for bankruptcy protection.
- The politicians belonging to the opposition parties were seen drawing government attention towards the plight of common people due to economic slowdown and contraction in employment growth; while the BJP leaders were mostly dismissive. The NDA allies were conspicuous by their absence from the entire debate.
- A pulp fiction writer who is a very vocal and ardent supporter of the prime minister wrote a detailed article in newspapers giving advising the government on how to stimulate an economic recovery. The article was aggressively highlighted on social media also.The question that bothered me for sometime was whether the government can (or should) use this opportunity to use Article 360 of the Constitution to impose a financial emergency and carry out material administrative reforms. There was a news item that suggested that the government may be considering a salary cut for employees for some PSUs. I wonder if that is possible without using Article 360.
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