Slump, loss of jobs talking point

Bhanu P Lohumi
Tribune News Service
Shimla, August 27

Concern over economic recession and slowdown in key sectors, resulting in the loss of jobs, was the gist of the speeches made by students at the inter-school debate 2019 organised by The Tribune and sponsored by Chitkara University on the topic “Is India facing an economic slowdown?” at Loreto Convent School, Tara Hall, here on Tuesday.

The participants highlighted the fluctuation in GDP rate. The positive and negative impacts of Goods and Services Tax (GST) and demonetisation were also discussed. Speakers were divided on the issue, with those against the motion describing it as a temporary phase that would yield good results in the future while those speaking for the motion saying it had dented the economy.

Facts, figures and statements of the then Union finance minister and economists were illustrated. As many as 22 students from 11 schools who participated in the debate came loaded with statistics on growth rate, economic slowdown, downward trend in sectors like real estate and automobile, and the slide in job market.

All economic parameters were reflecting a downward trend — fiscal deficit was increasing, investment was going down and the US$2.7-trillion Indian economy had slid to the seventh place while “Achhe Din” of the economy were a distant dream. The automobile sector was the worst hit, with 2.3 lakh people losing jobs while the number of unsold houses was increasing. The prices of property had gone down by 48 per cent but still, there were no takers, the speakers for the motion pointed out.

The new taxation system had a negative impact on the economy as new startups were not doing well, foreign investors were dragging their feet, there was slowdown in exports and manufacturing sector and as a consequence, unemployment was increasing. Less income, less expenditure, less demand and less production was the word for economy.

They maintained that both public and private sectors were suffering losses due to the slowdown and even flagship companies, such as ONGC and BSNL, were in the red. There was liquidity crunch, exports had fallen by 9.4 per cent and the pace of circulation of currency had also slowed down.

Meanwhile, students speaking against the motion said the change was essential for improvement. The government’s policy focused on eradication of black money and economic empowerment. India offered plenty of opportunities. The country had emerged as the fastest growing economy, which is expected to be $5 trillion by 2024.

The temporary decline in the SENSEX could not be termed as a slowdown as the nation had $450 billion of foreign exchange.

The global scenario was in India’s favour as it had a stable government, which could take political and economic decisions.

The economy was at $1.85 trillion approximately in 2014 and had increased to $2.7 trillion in five years. The upward trend to $5 trillion in the next five years was not a distant dream, they stated.

There had been an enormous increase in the revenue of online companies and aggressive policies. The GST had simplified taxation as all taxes had been removed and only one tax prevailed. The government was making 5,000 new towns, which would increase employment and income. This would reflect in an increase in the GD. The students dubbed the recession as a temporary phase. Jury member Dr Deepali, Prof Neelima Kanwar and Dr Deepali praised the speakers. Payal Vaidya, general secretary of HP Council of Child Welfare, was the chief guest.