India must take steps quickly to reverse economic slowdown IMF said

Declining consumption, investment, falling tax revenue
put brakes on one of world’s fastest growing large economies

Once the world’s fastest-growing economy, India faces a slowdown

“India now in significant economic slowdown” IMF told reporters 
“returning India to high growth requires policy actions” 
Modi govt has limited spending to support growth
given high debt levels and interest paymentsIndia’s debt – among highest in emerging markets – must be reduced
IMF chief economist Gita Gopinath said India’s slowdown “surprise downside” 
IMF to significantly downgrade growth estimates for India next month
IMF slashed India forecast for 2019 by nearly 1% to 6.1%
cutting outlook for 2020 to 7.0% 
Reserve Bank of India (RBI) cut key lending rate 5 times this year 
RBI slashed annual growth forecast for India to 5% from 6.1%
as consumer demand and manufacturing activity contract
India’s economy grew at slowest pace in six years 
July-Sept period, fell to 4.5% from 7% a year ago
Modi govt needs to reinvigorate reform agenda
restoring health of financial sector 
to “enhance its ability to provide credit to the economy”
SOURCE: News agencies
OSTB : Yes India was one of the fastest growing economies BEFORE Narendra Modi. 

Like Dr Mahathir, Narendra Modi does not know how to develop business, manufacturing and banking. Both Narendra Modi and Dr Mahathir believe in the same religion – irrationality.

Modi’s demonetisation policy has backfired (he made illegal some large denomination notes). 

Because of the unbelievable level of corruption in the Indian system of government, a large part of India’s economy has long gone “underground” for decades – no receipts for payments, undeclared incomes, payments in cash and gold bars etc. 

Instead of curbing corruption, Modi’s demonetisation policy has a role in seriously curtailing this underground economy. Hence also the “declining consumption”.  

The other killer reason for “declining consumption” in India is the GST (up to 18% on a sizeable number of goods deemed luxury goods).    Modi should have looked at what happened to consumption in Malaysia after Najib’s GST policy. Modi has basically killed the Indian economy. It is not going to come back tomorrow. They will have to die off first.

Modi is also victimising non Hindustani speaking regions of India – especially the heavily industrialised states of southern India. Tamil Nadu is the most heavily industrialised state in India. 

Modi’s Hindu-centric BJP party was completely shut out in the southern states of Tamil Nadu and Kerala and almost completely wiped out in Andhra Pradesh and Telangana.  Narendra Modi’s RSS inspired nationalism plus his Hindi language-centric alliance is a big mistake in India. RSS stands for Rashtriya Swayamsevak Sangh – the same Hindu extremists who killed Mahatma Ghandi.

India is a democracy. Democracies need votes. Modi’s ineptitude in developing the economy will likely make him turn more and more to religion, language and caste to win the votes. 

The same thing is happening in Malaysia.  When they do not know how to grow the economy,  they can always fall back on race, religion and language to win the votes. Same old, same old.