Nagpur: Dismissing all fears of recession even as India stares at a fast-spiraling economy, RSS Chief Mohan Bhagwat Tuesday said that the Centre has tackled the economic slowdown in a very ‘sensitive’ manner.
Speaking at the Vijayadashami speech at RSS headquarters in Nagpur, Bhagwat said, “The government has taken certain steps to correct the state of the economy. We need to wait to find all these measures work in the positive direction. The Centre has been very sensitive towards the economy.”
The RSS chief blamed the global slowdown -- further escalated by the ongoing trade war between US and China -- for the grim picture of the economy, saying that many countries around the world including India are suffering because of it.
He said this as he went on to laud the government’s recent measures and policies of the last one-and-a-half months aimed at beating the slowdown. “We will definitely come out of this cycle of so called recession. The personalities leading our economy are competent enough,” he said.
Recently, the Reserve Bank of India (RBI) lowered the repo rate by 25 basis points to 5.15% with five members of its Monetary Policy Committee voting in favor, versus one who backed a 40 basis point cut. The decision came against a backdrop of weaker growth, a resurgence of financial stability risks and a surprise fiscal stimulus in the form of a recent corporate tax cut.
More aggressive policy moves are expected, however, with the economy having deteriorated for five consecutive quarters, most recently hitting a six-year low of 5 per cent in the second-quarter of 2019.
The RSS supremo, however, rejected any claims of a recession with the economy registering a 5 per cent growth rate. “If we were growing below zero per cent that would have been recession. Right now we are growing at 5 percent. Why do we need to panic? We need to worry but not discuss. Discussions will make investors wary," he said.
Bhagwat also spoke in favour of the Centre’s move towards FDI and privatisation. “To strengthen the economy, the government is compelled to take steps such as allowing Foreign Direct Investment and disinvestment of industries. However, while implementing many government schemes and welfare policies at the lower level, more alacrity and efficiency and avoiding unnecessary stringency can set many matters right,” he said.
He stressed on the need to formulate an economic vision keeping in mind “our requirements, profile and condition of our people, along with our resources and potential to realize our national aspirations.” This vision and possible solutions for the economy, he said, must be searched for within the ambit of Swadeshi or self-reliance and Ahimsa.
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