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Opinion
Andy Mukherjee

Bank Mergers Are No Silver Bullet for India

The benefits won’t be felt for years, while Modi’s government is staring at an economic crisis now.

Indian new-car sales plummeted in August, worsening fears of a slowdown.

Indian new-car sales plummeted in August, worsening fears of a slowdown.

Photographer: Robert Nickelsberg/LIFE Images Collection/Getty

With every passing day, India’s economic indicators are turning a little bleaker. The situation is bad enough to warrant using the word “crisis,” arriving just as the government’s fiscal ammunition is spent.

The announcement Friday of 5% GDP growth in the June quarter showed the economy growing at its weakest pace in six years. On Sunday, the top six carmakers reported a 29% drop in August sales, stoking fears that the slowdown could get still worse.  The 982 billion rupees ($13.7 billion) collected in August via the goods and services tax, the main tax on consumption, was the smallest in six months.