The challenges facing Indian economy should be addressed by serious and meticulous work, not by slogans, branding and marketing, according to Jairam Ramesh, former Union Minister and a Member of Parliament.

“Management of economy is a serious matter and hence, the issues affecting economic slowdown have to be addressed much more seriously and systematically now than the past,” he said, while addressing the 107th annual general meeting of the Southern India Chamber of Commerce and Industry (SICCI). He was of the view that the Centre did not pay serious attention to managing the economy.

“The situation we find ourselves today is simply because there is an assumption on the part of those who are in the power that they have a monopoly in wisdom. It needs collective effort to address today’s problem — not only by speaking, but also by listening,” he added.

Ramesh said India was facing ‘GDP growth recession’ as GDP growth decelerated for six consecutive quarters.

“Any professional assessment of today’s economy would have to conclude that the slowdown that we have is not statistical, but structural and not a short-term blip. It is something that is embedded in our system,” he said. According to him, demonetisation, improper implementation of GST and wrong exchange policy have led to deceleration in economic growth. The biggest stress has been in the informal sector of the economy. Small scale industries and rural sectors have been severely crippled.

“On the one side, demonetisation took place and on the other, MSP (minimum support price) increases have not kept pace at the rate at which they should have,” he added.

He stressed that India was still a big informal economy, as 50 per cent of the GDP and 92 per cent of employment came from informal sector.

Ramesh pointed out that the country needed to achieve three things — rapid, inclusive and sustainable economic growth. But it should be achieved without causing rise in inequality and damaging the environment.

“We need eight per cent GDP growth. But, growth should also arrest inequality. We have been able to reduce poverty, but inequality has been rising in the past two decades. Also, high GDP growth should not lead to polluting our rivers and damaging the ecosystem.”