oppn parties Uber, Ola And Economic Recession
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January 29, 2023

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  • RBI governor Shaktikanta Das says that inflation is easing and the current account deficit is manageable
  • Adani Enterprises FPO sees just 1% subscription on the first day as the stock goes down to Rs 2762, much below the price band of Rs 3112-3276
  • Stocks bleed on Friday post the Hindenburg report as Adani stocks are hammered: Sensex loses 874 points to 59330 and Nifty 287 points to 17604
  • Rs 263cr TDS scam detected by the I-T department. A mid-level officer was the kingpin and had amassed huge wealth
  • Women's U-19 World Cup -India reaches the final by beating New Zealand by 8 wickets
  • New Zealand beat India by 21 runs in the first T20 as spinners choke Indian batters
  • Sania Mirza and Rohan Bopanna lose in the Australian Open finals
  • Sania Mirza and Rohan Bopanna lose in the final of the Australian Open
  • India to play New Zealand in the first T20 of the three-match series in Ranchi today
  • RBI has proposed special purpose vehicles (SPEs) mechanism to sell bad loans to interested investors via securitization
  • JD(U) decides not to attend the Bharat Jodo Yatra finale in Srinagar
  • Hindenburg defends its report on the Adani group, dares Gautam Adani to sue it in the US
  • BJP's talks with Tipra Motha in Tripura make no headway but the party is confident of winning in the ensuing elections
  • Pathan is a super hit at the box office: Rs 57cr in India (worldwide Rs 106cr) on Day 1 and then Rs 70cr on Day 2 which was Republic Day holiday
  • Centre tells Delhi HC that Covid vaccines can't be mixed when taking the second dose
A Mirage2000 and A Sukhoi 30 of the Indian Air Force on a training mission crashed separately, in Bharatpur in Rajasthan and Morena in Madhya Pradesh, killing one pilot
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.