Reportedly former rbi governor YV reddy listed three major problems that the narendra modi government faces in the middle of an extended economic slowdown. On Reddy's list are the continued decline in the Gross Domestic Product (GDP) growth rate for six quarters, the trouble in the financial sector which he said has not been worked upon and the issue of employment generation.
Furthermore YV reddy said, "The GDP numbers are lower than what they were earlier. Nobody denies that. The financial sector is in trouble. Even the Comptroller and Auditor General has pointed this out. Also, there is a serious issue of employment. We should now broadly say we are in difficulty." "This tells that something must be structurally wrong or rather something structurally must be righted," reddy said at the launch of former planning commission vice-chairman Monte Singh Ahluwalia in New delhi on Wednesday.
Moreover contrary to the observations made by other participants of a debate at the book launch that included former finance minister P chidambaram and Bibek Debroy, current member of economic advisory council that the modi government is in denial mode over economic slowdown, reddy said the modi government has admitted to the economic slowdown and also the need for reforms to deal with the situation.
