From Jet’s Crisis to Unemployment - Brief Look at India’s Economic LagBusiness News

August 22, 2019 18:24
From Jet’s Crisis to Unemployment - Brief Look at India’s Economic Lag

(Image source from: Business Standard)

While the whole world is immersed in exchanging views on Indian government’s decision to revoke article 370, which provided special status to Jammu and Kashmir, we paid little or no attention to some of the details that have been taking place since Narendra Modi came to power.  

1. Jet Airways Closed

                       (Image source from: Nikkei Asian Review)
An Indian international airline Jet Airways Ltd flew its last flight on April 17 after lenders refused to hand out emergency funds.

2. Air India Faces Loss

                        (Image source from: Gulf News)
India based airline Air India reported highest-ever loss of more than Rs 7,600 crore in the financial year 2018-2019 due to low fleet utilization and high fuel prices among others.

3. BSNL Jobs in Peril

                        (Image source from: Odishatv)
The board of state-run telecom operator Bharat Sanchar Nigam (BSNL) Limited laid off over 54,000 employees to save Rs 13,895 crore on the wage bill over the next six years.

4. HAL Faces Severe Cash Crunch

                        (Image source from: India Today)
Defense PSU Hindustan Aeronautics Limited (HAL) for the first time in decades forced to borrow money to pay salaries to its employees.

5. India Post Goes Through Losses

                        (Image source from: Livemint)
In the past three financial years, the revenue shortfall of the Department of Posts, trading as India Post, has increased rapidly to nearly 150 percent from Rs 6,007 crore in FY16.

6. Lay off in Auto Industry

                       (Image source from: Deccan Chronicle)
India’s auto parts industry was forced to lay off over five million workforces owing to slow down in vehicle sales.

7. Houses Being Unsold in Major Cities

                        (Image source from: Business Standard)
Amid real estate sector already facing severe liquidity crunch Over 12.76 lakh houses are lying unsold in India's top 30 cities including Mumbai Metropolitan Region, National Capital Region, Bengaluru, Hyderabad, Chennai and Pune.

8. Aircel Is Dead

                        (Image source from: Business Today)
India’s sixth-largest telecom operator Aircel shut down its services abruptly on February 21 after going bankrupt.

9. Jaypee Group Ceased

                        (Image source from: The Financial Express)
Indian conglomerate Jaypee Group ceased after a massive debt and pressure on profitability.

10. ONGC in Loss

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The Oil and Natural Gas Corporation faced a loss of Rs 4,000 crore on natural gas output in the financial year 2018.

11. Over 30 Defaulters Flee from India   

                       (Image source from: Swarajya)
The country is struggling to extradite 31 businessmen who allegedly fled the country after defaulting on billions of dollars of bank loans.  

12. Rs 2.4 Lakh Crores Loan Waive off to Corporates

                        (Image source from: Business Today)
According to the government’s statement: “As per Reserve Bank of India (RBI) data on global operations, Public Sector Banks have written-off (including compromise) an amount of Rs. 2,41,911 crore from the financial year 2014-15 till September 2017.

13. Punjab National Bank (PNB) Still in Losses

                       (Image source from: India Today)
The Punjab National Bank had gone through net losses during the financial year 2017-18 after it disclosed fraud of more than Rs 14,000 crore involving Indian fugitive jewelers Nirav Modi and Mehul Choksi.

14. Payment Banks’ Huge Losses

                        (Image source from: Zee Business)
The operational payment banks’ consolidated balance sheets for the fiscal year 2018 showed net losses of Rs 516.5 crore, almost double that of the fiscal year 2017 when they lost Rs 242.2 crore.

15. Rise in India’s External Debt

                        (Image source from: Zee Business)
India's external debt seen an increase of 2.6 percent to USD 543 billion at end-March 2019.

16. Indian Railways on Sale

                        (Image source from: India Fellow)
The Indian government auctioned 23 railway stations across the country as a part of Public Private Partnership (PPP) projects.

17. Red Fort Adopted

                       (Image source from: Travelogy India)
The 77-year-old Dalmia Bharat group has created history by adopting in New Delhi in a Rs 250 million contract spanning five years.

18. Maruti Cuts production

                       (Image source from: Money Bhaskar)
Auto manufacturers Maruti had reported a production cut after facing muted sales for quite some time.

19. Passenger Vehicles Lying Unsold

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The automobile sector is facing a massive crisis due to liquidity crunch, slow job growth, and weak buyer sentiment. According to reports, major two and four-wheeler automakers such as Maruti, Tata, Honda, Mahindra in India have shut down their production due to unsold stock.

20. Builders All over Stressed

A large number of builders are committing suicides due to no buyers and construction stooped due to Mat cost rise (GST at 18 percent to 28 percent).

This being so, the country is facing an extreme crisis from around-the-corner:

21. Ordnance Factory Board (OFB) under corporatization affecting more than 1.5 lakh employees and families.

22. Millions are living through unemployment due to demonetization introduced in November 2016, by Modi-led government.

23. Highest unemployment has been reported in the last 45 years.

24. 5 airports - Lucknow, Jaipur, Thiruvananthapuram, Mangaluru and Ahmedabad - sold to Adani group.

25. Highest domestic stagflation.

26. Record HNI (High-Net-Worth) individuals leaving India.

27. Videocon went bankrupt.  

28. Tata Docomo perished.

Cafe Coffee Day founder VG Siddhartha suicide due to huge debt.

By Sowmya Sangam

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jet airways  unemployment  business  India