国际英语新闻:Modi's demonetisation, tax reforms fail to produce expected economic results: experts

NEW DELHI, Oct. 11 (Xinhua) -- Since assuming power in 2014, Indian Prime Minister Narendra Modi has introduced a slew of measures to boost the economy; however, his demonetisation and tax reforms have not produced the expected results, experts here said.

"I think the ruling Bharatiya Janata Party (BJP) enjoyed the note ban dividend in the 2017 Uttar Pradesh polls. It showed that the uNPRecedented move banning about 86 percent of the currency in circulation to root out black money and corruption helped Modi pit the honest against the crooks," said Bharat Sundar, an economic analyst based in Delhi.

"But now, a few months later, its real effects are being borne by the economy. Demonetisation and GST (goods and services tax) were not thought about decisions but rather introduced in a jiffy. They have added to people's woes and pulled the economy down," he added.

"Since Aug. 1 this year, foreign investors have net-sold nearly 2.51 billion U.S. dollars of Indian stocks; their net purchases in 2017 amount to 6.4 billion U.S. dollars now," said Gogoi Roy, a stock analyst.

A survey by Reserve Bank of India conducted recently pointed out that only 34.6 percent of people believed that economic revival was happening on the ground as compared with a previous survey in September 2016, when 44.6 percent said the same.

The government has now promised a stimulus package to revive the economy. "India is facing inflation, higher deficit etc. Besides gloom at domestic front, the U.S.-North Korea tensions and the American Federal Reserve's plan to re-chart their balance sheets have taken the toll on the stock market," said Ruby Chaudhury, a former professor at Delhi University.

"The revival of Prime Minister's Economic Advisory Council is the first step in the stimulus direction. It shows that the government is going to seriously address the stagnation of growth issue," she added.

"Across the world, there is a talk of putting aside austerity measures and push for growth. World economies need to come together and form a strategy of expansion to stimulate public expenditure and private investment," said Alok Gupta, an economist.

"India still has the potential to revive world markets but with the recent steps, the government needs to focus on recovery and contain inflation at the moment," the economist said.

"Growth has slowed for five consecutive quarters and is slower than the one in which the BJP assumed office. Growth matters for employment and basic right to living. The government may need to give a shot in the arm to education and health sectors also which need considerable improvement," he added.