Raghuram Rajan Behind India's Declining Growth, Says NITI Aayog Vice-Chairman Rajiv Kumar
New Delhi sep 03: With Indian medium and small scale enterprises registering a 100 percent growth in loan defaults and non-performing assets surging on a year-on-year basis, Niti Aayog Vice Chairman Rajiv Kumar laid the blame on former RBI governor Raghuram Rajan, stating that his policies led to industries not receiving credits from banks.
“It is a continuation of a trend of a declining growth, and why was this growth declining, it was declining because of the rising NPAs in the banking sector. When this government came into office that figure was 4 lakh crore, it rose to 10.5 lakh crore by the middle of 2017 because under the previous RBI governor, Mr. Rajan, they had identified mechanisms to identify stressed and non-performing assets which is why the banks stopped giving credit to industries,” said Kumar on Monday.
He was responding to a question on why the growth had slowed down post demonetisation. He said the slowdown was not due to the decision to scrap old Rs 500 and Rs 1,000 notes but because of Rajan's policies. "There was already a declining trend in the economy. Starting from the last quarter of 2015-16, the growth rate had come down for six successive quarters," he said.
The banking sector crisis in India can be identified by Punjab National Bank (PNB), India’s second-largest state-owned lender, posting its financial results for the first quarter of 2018-19. It reported a net loss of Rs 940 crore.
In June 2018, the Reserve Bank of India (RBI) cautioned in its Financial Stability Report that things would worsen before they become better. In March 2018, gross non-performing advances of all scheduled commercial banks stood at 11.6 percent of gross advances. The RBI outlined what it expected to happen to them a year hence in three scenarios. At best, it projected gross NPAs of 12.2 percent (baseline scenario); at worst, 13.3 percent (severe stress scenario).
“Especially in the case of small scale business, their credit actually shrank. There was a negative growth in the years. Even for the large industries, their growth shrank to 1.5 percent to 2 percent and in some quarter even negative. This has been the highest deleveraging of India’s commercial sector in the country’s economic history. Never had we seen such a continuous year after year of deleveraging of credit. This has been the primary reason for falling growth. The current government ramped up the public capital expenditure for the very raseon,” added Kumar.
For the first quarter of the current financial year, investments grew at 10 percent, lower than the 14.4 percent in the last quarter of the preceding financial year, benefitting from a 27.4 percent rise in the central government’s capital expenditure in the first quarter.
Courtesy: news18.com
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Unexplained deaths: J&K’s Badhaal village declared containment zone
Rajouri/Jammu (PTI): The remote Badhaal village in Jammu and Kashmir's Rajouri district was on Wednesday declared a containment zone and prohibitory orders imposed on all public and private gatherings in the wake of the death of 17 people belonging to three families, officials said.
Another person belonging to the village has been admitted to a hospital in a critical condition, they said.
The containment orders have been imposed under section 163 of the Bharatiya Nagarik Suraksha Sanhita (BNSS). Section 163 of BNSS gives magistrates the power to issue written orders in urgent situations. These orders can be used to prevent or remedy nuisance or dangers.
According to the order issued by additional district magistrate (Rajouri) Rajeev Kumar Khajuria, the village has been divided into three containment zones – the first covering all families where deaths have occurred.
“The houses of these affected families shall be sealed and entry will be totally restricted for all individuals, including their family members, unless otherwise authorized by the designated officers/officials.”
In the containment zone 2, the order said the members of all families identified as close contacts of affected individuals be shifted to Government Medical College, Rajouri for continuous health monitoring which is mandatory.
All households will be covered under the containment zone-3 and staff will be deployed to ensure the continuous monitoring of food consumption, deployment of police personnel to enforce compliance and deployment of designated officers for maintenance of log books, the order said.
“All public and private gatherings are hereby prohibited within the jurisdiction of these containment zones, in order to prevent further spread of the infection,” the order said.
It said the designated officials shall be responsible for monitoring all meals provided to families in containment zones.
“It is mandatory for affected families and their close contacts to consume only the food and water provided by the administration. Any other food items available in the households are strictly prohibited for consumption,” the order said.
It ordered immediate replacement of all food and water supplies, and seizure of all edible materials in the infected households.
The fresh steps were taken after Chief Minister Omar Abdullah visited the village on Tuesday.
Seventeen persons belonging to three families linked to each other have died under suspicious circumstances in the village between December 7 and January 19.
A 24-year-old man identified as Aijaz Ahmad was hospitalised on Tuesday evening after his health deteriorated.
