In defence of economy, minister cites ‘huge business’ by 3 movies in a day

india

Updated: Jul 10, 2020 00:24 IST

Union minister Ravi Shankar Prasad on Saturday highlighted the “huge business” done by three movies released on single day to underscore the “soundness” of the Indian economy.

“On October 2, three movies were released. Film trade analyst Komal Nahta said that the day saw earning of over Rs 120 crore, a record by three movies. Economy of country is sound, that is why there is a return of Rs 120 cr in a day,” the minister was quoted as saying in Mumbai by ANI.

The three movies, released on Gandhi Jayanti, that the minister talked about were Joker, War and Sye Raa Narasimha Reddy.

The comment comes on the back of industrial output figures released on Friday which presents a different picture. The government data revealed factory output shrank by 1.1% in August, recording the poorest performance in seven years due to a sharp decline in production of capital goods and consumer durable.

Industrial production growth for the first time in more than two years has slipped into negative territory.

Data released by the ministry of statistics showed manufacturing and electricity contracted 1.2% and 0.9%, respectively, while mining output remained almost flat growing at 0.1%.

Earlier this month, the Reserve Bank of India cut policy rates by 25 basis points and resolved to continue with an accommodative stance as long as it is necessary to revive growth. Realising that the economic downturn is sharper than it earlier anticipated, it pared down its full year growth forecast to 6.1% in 2019-20 from 6.9% projected earlier.

In September, Home Minister Amit Shah held a meeting with BJP-ruled states on the economic slowdown.

The economic growth slowed to a seven-year low to 5 per cent in April to June quarter from 8 per cent a year ago, as per the government data.

Finance Minister Nirmala Sitharaman has announced a series of steps to arrest slide, revive growth and uplift consumer sentiment.

On Friday, conceding that GST may have some flaws in its present form, Sitharaman asked tax professionals not to condemn it and sought their help to improve the system instead.

The minister was replying to concerns raised by taxation industry professionals here, who said the industry was “cursing” the government over how the GST was implemented.

Billed as the biggest reform in indirect taxation, the goods & services tax, which does away with a host of levies from the federal to the local government levels, was implemented in July 2017.