Supply side policies fail, need to take measures to increase demand: Mitra’s letter to Sitharaman
He said in the four-page letter that the gross fixed capital formation, which stood at Rs 12.3 lakh crore in the first quarter of 2019-20, has come down to Rs 10.2 lakh crore in the corresponding period of the current fiscal – “many of your packages and corporate Despite the tax cut, investment declined by Rs 2.1 lakh crore.
Mitra said, “I would like to draw your attention to the deep crisis that the common people of our country are facing today. This crisis is expected to deepen in the coming year.
“Yet the irony is that your government’s campaigners are proud of the growth in the first quarter of 2021-22, which economists have found completely misleading and other experts have called it a mirage,” he said.
India’s economic growth accelerated to 20.1 per cent in the April-June quarter of the current fiscal, benefiting from a very low base from the same period a year ago, when GDP declined by 24.4 per cent.
“In the last month (August 2021), the unemployment rate has risen again to 8.32 per cent (according to Government of India data), which means there are 36 million people unemployed today… this number is the entire population of Australia,” he said. It’s one and a half times.
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