oppn parties Uber, Ola And Economic Recession

News Snippets

  • Kapil Sibal leaves Congress, fills nomination for Rajya Sabha with SPs backing
  • RBI bans 5 NBFCs as it cracks down on e-lending platforms
  • Hindustan Motors to tie-up with Peugeot to bring out a redesigned version of the iconic Ambassador
  • GST Council to defer rate rejig due to inflation
  • Centre to sell 29.5% in Hindustan Zinc at an expected price of Rs 38000cr
  • Stocks remain negative on Wednesday: Sensex loses 303 points to 53749 and Nifty 99 to 16025
  • IPL: RCB beat LSG by 14 runs and end their dream run. Rajat Patidar scores a brilliant 112. RCB will take on RR to decide who goes through to the finals
  • Delhi Additional district judge Nikhil Chopra says there is no legal right for people seeking to worship deity inside Qutab Minar, says it survived 800 years without worship so "let it survive like that"
  • Punjab chief minister Bhagwant Mann sacks state health minister Vijay Singla over corruption charges. Singla was later arrested by the ACB
  • Protestors burn the house of Andhra minister P Viswaroop and MLA Satish Kumar over renaming of Konaseema district as B R Amberdkar Konaseema
  • Gyanvapi: Varanasi district judge decides to first hear the 'maintainability' plea filed by mosque management
  • Delhivery and Venus Pipes shares list at premium of 10% and 8.7% respectively even when market sentiment was down
  • In a bid to cool edible oil prices, Centre allows duty-free imports of 20 lakh tonnes each of crude sunflower oil and crude palm oil per annum this year and next
  • Centre caps sugar exports to ensure availability of stocks in the domestic markets to cool prices
  • Stock markets get the jitters as RBI signals rate hike and government moves in to control inflation: Sensex tumbles by 236 points to 54052 and Nifty goes down by 89 points to 16125
Yasin Malik of JKLF gets two life terms in terror funding case /////// Kashmir TV artist killed and her nephew injured in a terror attack in Hushroo in Budgam district
oppn parties
Uber, Ola And Economic Recession

By Linus Garg

About the Author

Sunil Garodia Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.

Finance Minister Nirmala Sitharaman has said that the auto industry is suffering low sales as millennials prefer to ride on Uber and Ola instead of owning cars to avoid the hassle of driving and looking for parking slots. This is once again a classic example of a government not willing to acknowledge a problem and looking for excuses to explain the slowdown in the economy.

Sitharaman should know that preference for riding on Uber and Ola can be one of the minor reasons but can never be one of the main reasons for the precarious position the auto industry finds itself in. On the other hand, car sales are being driven by Ola and Uber because as demand rises for such rides, people are investing in cars to run them on the app-based platforms.

Further, it is not only the sales of cars that have plummeted. Demand has fallen across the board for all kinds of vehicles, including two-wheelers and commercial vehicles. App-based platforms cannot be held responsible for that. It is lack of manufacturing activity and falling profitability for businessmen and lack of jobs and no rise in salaries for the salaried-class that is preventing them from investing in acquiring new assets.

The finance minister must be aware that auto sales have been going down for 10 straight months now. She must also be aware that GDP growth rate is going down, companies are reporting lower sales in their quarterly results, manufacturing has contracted for the last few months and credit off-take has slowed down to a trickle. All this taken together shows that the economy is in recession.

Hence, instead of looking for excuses or responding in knee-jerk fashion, the finance minister should apply her mind and think of structural reforms. She should find the money to invest in infrastructure to perk up demand. The government must not sleep on the matter and instead must tackle it on a war footing.