Sir — The BJP’s national executive meet was an exercise in back-patting in a tone that was strongly self-congratulatory. While gloating over the success of demonetisation, the party termed its aftermath a “sacred movement” during which the masses accepted the temporary suffering with enthusiasm and asserted that black money deposited in banks will lead to high revenues and bigger and cleaner GDP.
Instead of acknowledging the grim reality of slow growth, the BJP is trying to paint a rosy picture. The ground reality is that manufacturing, construction and services have contracted. Corporate earnings are set to fall. In the absence of private investments, Government spending is driving growth. Demand can pick up only if the Government leaves more cash in the hands of people and the RBI lowers rates.