Like the last five years, the economic data has exposed the claims of Modi government this year. Recent data from the Ministry of Statistics revealed that private investment in India has fallen badly.
The National Statistical Organization (NSO) released the figures for the financial year 2019-20, stating that the growth rate of private investment in the fourth quarter (January to March) of the financial year 2019-20 was 2.7% as compared to the private investment in the same quarter last year. The growth rate was 6.2%.
In this way, private investment in India has come down by 60% in the last one year. And this is when the central government reduced the corporate tax by 25% in September last year.
Explain that the corona virus epidemic does not have much impact on this investment as these figures are as of March 2020, and there were only 390 corona cases in India till March 24, 2020. From this it appears that the performance of the Modi government on the economic front was already poor.
Economic experts say that the reason for declining private investment is the lack of demand in the country. Until the demand increases, no private sector player is ready for investment.
This Modi government seems unable to understand the economy. While the government itself should have tried to increase the demand for investment tax, they should take immature steps like reducing corporate tax.