Former Finance Minister Yashwant Sinha, on Monday, said that key reasons for slowdown in ecomy are contraction in demand and reluctance to invest. Sinha, while accusing corporates, said that some of m are sitting on a pile of cash, but are t making investments, thus affecting demand. 

International ncies are questioning us: Sinha

former BJP leer, while delivering a speech on subject, 'Ecomic slowdown: structural or cyclical', at Gokhale Institute of Politics and Ecomics in Pune, said that one can trust figures, data and statistics put out in country anymore and that several international ncies like International Monetary Fund (IMF) and World Bank have raised questions over m.

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"Corporate, PSU sectors have suffered in last year. demand in ecomy, which is growth engine, has come crashing down," he said. He also ded, "Some corporates are t investing because y depend on bank loans for investment and banks have withdrawn some of ir facilities. But re are some corporate firms who are sitting on cash, but are t investing and major reason behind this that is re is demand.”

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Seven-year low slowdown in ecomy

As per government data, ecomic growth of India presented a slowdown to a seven-year low to 5 per cent in April to June quarter from 8 per cent a year ago. slowdown has largely been attributed to a sharp dip in manufacturing sector and agriculture output, Ministry of Statistics and Programme Implementation h said in a statement. 

RE | PM Modi lauds measures to boost ecomy. Here is a summary

On a related te, Finance Minister Nirmala Sitharaman recently introduced cuts in corporate taxes as part of stimulus to help ecomy recover from ongoing slowdown. In a move that presented government’s efforts towards introducing reforms for nation and pleasantly surprised everyone, Sitharaman surpassed expectations and introduced an across--board rate of 22% for all domestic corporate taxpayers subject to corporates t claiming any exemptions or incentives.

RE | PM Modi lauds measures to boost ecomy. Here is a summary

(With PTI inputs)