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Shiv Sena UBT Challenges GDP Growth Amid Market Decline
Shiv Sena (Uddhav Balasaheb Thackeray) criticized the government’s economic claims.
The party said India’s GDP grew by 7.8 percent.
However, it said the stock market was falling and investors were losing money.
It also said foreign investors were taking large amounts of money out of India.
The Sensex fell below 75,000, and the editorial said investors lost Rs 4 lakh crore.
The party argued that inflation and high prices were still hurting people.
It also said many families still depended on free foodgrain from the government.
The government may blame global events, but the party said the weakness had lasted too long to be explained only by those events.
Shiv Sena (Uddhav Balasaheb Thackeray) questioned how 7.8% GDP growth could coexist with a falling stock market and foreign capital outflows.
Its Saamana editorial said the Sensex fell below 75,000 for a third consecutive session, wiping out Rs 4 lakh crore in investor wealth.
The editorial cited foreign investor withdrawals exceeding Rs 6,000 crore in ten days and total current-year outflows of Rs 2.32 lakh crore.
It said inflation, commodity prices, unpaid contractor dues and reliance on free foodgrain distribution remained serious concerns.
The party rejected global factors as a complete explanation for the market weakness, while acknowledging the government may cite the US-Iran conflict, oil prices and US bond-market selling.
- Who
- Shiv Sena (Uddhav Balasaheb Thackeray), through an editorial in Saamana, criticized the Bharatiya Janata Party-led Central government and Narendra Modi’s economic record.
- What
- The party questioned the contrast between reported 7.8% GDP growth, falling Indian markets, investor losses, inflation and foreign capital withdrawals.
- Where
- India, including the Indian stock market.
- When
- The editorial was published on Friday; it referred to a market decline on Wednesday and foreign withdrawals during the first four days of September.
- Why
- The party argued that strong GDP figures had not translated into better market performance, lower inflation or improved conditions for ordinary people.
Shiv Sena (UBT) Criticism
Government’s Reported Global-Factors Explanation
Cause of market decline
Shiv Sena (UBT) Criticism
Shiv Sena (Uddhav Balasaheb Thackeray) said the prolonged market weakness exposed a contradiction between the government’s GDP claims and economic conditions on the ground.
Government’s Reported Global-Factors Explanation
The editorial said the government may attribute the decline to the escalating US-Iran conflict, crude oil prices above $100 per barrel and selling in US government bond markets.
Meaning of GDP growth
Shiv Sena (UBT) Criticism
The party argued that higher GDP had not reduced inflation, investor losses, foreign capital withdrawals or the number of families relying on free foodgrain.
Government’s Reported Global-Factors Explanation
The government’s stated position, as described by the editorial, presents the economy as having strong or “dynamic” momentum based on the reported GDP growth.
Foreign investor confidence
Shiv Sena (UBT) Criticism
The party said foreign investors’ withdrawals showed they did not share confidence in the “booming GDP” figures.
Government’s Reported Global-Factors Explanation
The articles do not provide a direct response from the government or foreign investors to this criticism.
Key facts
- Reported GDP growth
- 7.8%
- Sensex level
- Below 75,000 for the third consecutive session on Wednesday
- Investor wealth loss
- Rs 4 lakh crore
- Foreign withdrawals in ten days
- More than Rs 6,000 crore
- Withdrawals in first four September days
- Rs 7,500 crore
- Current-year foreign capital outflows
- Rs 2.32 lakh crore
- Other concerns cited
- Inflation, rising commodity prices, unpaid contractor dues and continued reliance on free foodgrain distribution
Quotes
Shiv Sena (Uddhav Balasaheb Thackeray) editorial
Editorial published by Shiv Sena (Uddhav Balasaheb Thackeray) in Saamana
“As much as Modi inflates the GDP growth figure, the numbers for common people's losses in the stock market, foreign investment withdrawals, inflation, and price hikes continue to swell just as much. The current state of the nation is that the GDP grew, and the Indian market collapsed”
thehansindia.com
“While blowing the trumpet of GDP growth, PM Modi claimed the Indian economy had become 'dynamic.' Where has that dynamism disappeared in the stock market? Why have foreign investors become so 'dynamic' in pulling their money out of India?”
thehansindia.com
Sources
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