PPBM state secretary Mohinder Aggarwal asks traders of Punjab not to worry much about recession

Ludhiana, September 4, 2019: Punjab Pradesh Beopar Mandal state secretary Mohinder Aggarwal has asked traders of Punjab not to worry much about the ongoing recession across the country.

Speaking to City Air News, he added that there were many factors, both domestic and global, which were leading the nation towards recession. However, India was not alone across the world because even many big nations such as USA, China and Japan too were facing the similar situation. Still, the economic condition of India was much better than many other developed and developing countries, he said. He said even Rajiv Bajaj, Managing Director of Bajaj Auto has admitted in the media that the two-wheeler retail sale had declined by 5 to 7 per cent but it could not be termed as a crisis. “Therefore, people must maintain their faith in the leadership and policies of the government that is taking many measures to overcome the presence situation”, said Aggarwal.

Further, Aggarwal said it was true that GDP of the country had come down but many other countries such as China, Japan and USA were facing the similar situation. He said the recession was taking place due to a trade war going on between US and China. The economic situation in China was so worse that China had to devalue its currency twice in the recent times. He said there are media reports that China's yuan has come down by around 4 per cent in August to its lowest point in more than 11 years.

Adding, he said the present government at the Centre had taken many reforms in the past. All these factors were resulting into recession in the Indian market, he said. Even the Punjab’s export of yarn to China was getting affected due to disturbed economic conditions in China, said Aggarwal, adding that many manufacturing units consuming yarn as raw material had shut down in the recent past.

Aggarwal said the present situation should not be treated from any political angle. Rather, traders should try to cut short their expenses to face the present situation. He said if the government could plan to cut short its expenses with merger of banks and taking several other measures then traders should also think of adopting measures to shorten their expenses.

Adding, Aggarwal said recession was not occurring for the first time in the Indian market. It was also witnessed about a decade ago. At that time the then UPA government had made temporary arrangements to control the situation. These measures were included withholding of bill payments for years-long and printing of currency in excess, he said.

Aggarwal welcomed the RBI's decision to transfer surplus reserve of Rs.1.76 lakh crore to the government. He said the decision had been taken following the recommendations of an expert committee led by the Bimal Jalan. He hoped that the decision would ultimately give a boost to the sluggish economic growth across the country. He pointed out that those opposing the decision must keep in mind that this had happened not for the first time. He said the RBI had done this many times since the year 2007-08.