The nifty sensitive index fell consecutively for the sixth straight session and investors have lost 17 lakh crores over the period. While much the fall is being attributed to the global uncertainty brought about by disruptive noises from the trump administration regarding higher tariffs and trade restrictions domestic slowdown is also irrefutable. The market has not accepted the union budget’s claimed impetus through cuts in personal income tax slabs helping the middle classes. The growing inequality in the country has affected consumption and thereby investment. The markets review of Modi government’s record has been lukewarm at best as it has averaged only 12-15% across its 10 years and nifty had had higher growth rates even in the nineties and the period between 2005-2010 showed upto 25% returns. This is after the blatantly pro corporate policies the government has espoused. Addressing this inequality issue is central to a stable economic system.
