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Current economic crisis is momentary, says Swadeshi Jagaran Manch

ANI  |  General News 

Swadeshi Jagaran Manch (SJM), an RSS-affiliate, has termed the present economic situation as "momentary" and hoped that the country would overcome it within two-three months as the government was "sensitive" and taking all necessary steps to deal with it.

"The GDP growth rate coming down to 5 per cent was not so surprising in the wake of reduced demand in the automobile sector. The main problem is in the manufacturing sector, which is witnessing absolute decline due to lack of working capital. Rest of the sectors were doing well," SJM co-convenor Ashwani Mahajan told ANI on Tuesday.

He said the three sectors registered a growth rate of more than 7 per cent with electricity, groundwater supply, and other services registering growth with 8.6 per cent.

"Trade, hotel, transport, telecom, and broadcast registered a growth rate of 7.1 per cent while public administration, defence, and others registered a growth of over 8.5 per cent," he said, adding that just due to problems in automobile sector, the entire economy can't be called to be in crisis.

Mahajan said the slowdown in the global economy has some impacts on the Indian economy as the entire world today is connected economically.

"The growth rate of the US came down from 3.1 per cent to 2.1 per cent. The European Union growth rate came down from 0.4 to 0.2 per cent while China's GDP growth dipped from 6.4 to 6.2 per cent. So the entire world is today connected through each other's economy and they affect each other too," he said.

"The present situation of the economy is momentary. It will return on tracks within two-three months. The government is sensitive and responsive. It is talking to all stakeholders to bring the economy on track," he added.

Mahajan said the situation is not as worrying as being described by some quarters of politicians. "Steps being taken by the government are enough to bring the economy back on track," he said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, September 03 2019. 17:34 IST