The seeds of auto slowdown were sown much earlier
Conventionally, automobile industry performance is widely accepted as a lead indicator of the overall economic performance of any economy. No wonders if the recent slowdown in automobile demand is being represented as a mark of the slowdown in overall economic activity. However, the reactions from policy makers - ministers, MPs, senior advisers & bureaucrats, etc - are perplexing. They have mostly sought to trivialize the issue of slowdown either by outright rejection or some lame explanation. The suggestion of the finance minister that use of app based taxis may be a key reason for slowdown in demand of automobile has been criticized widely on social media as a completely illogical. These unmindful assertions from the official side have raised doubts over the policy makers' understanding of the current state of Indian economy. These doubts may impact the already faltering business and consumer sentiments. In this context it is important to note that— ...