- In a telling commentary on what's unfolding in India, the global broking house slammed the Narendra Modi government in no uncertain terms.
- The government may have been pursuing a devious strategy of deflecting public concerns about job and income prospects (and the recent inflation spike) with its controversial ‘citizens’ legislation, the report said.
- This was a gross miscalculation. The powerful public backlash will exacerbate domestic demand prospects over the coming months, the report added.
"There is nothing good, in our view, that can be said about the Citizen Act and National Citizens Register. The economic impact is our main interest," the report said slamming the Narendra Modi government's move to push through the Citizenship Amendment Act (CAA), which has sparked protests across the country— many of which have been violent.
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The public outrage against the Act is based on the understanding that, combined with the proposed National Register for Citizens, the CAA will be used to discriminate against the Muslims in the country. While the government has repeatedly denied the charge, it hasn't cut ice with its critics or the protestors across the country.
But the report did not stop there; it also ascribed a insidious intent to the process. "The government may have been pursuing a devious strategy of deflecting public concerns about job and income prospects (and the recent inflation spike) with its controversial ‘citizens’ legislation," the report said, adding that, "This was a gross miscalculation."
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These are some of CLSA's warnings about the prospects of the Indian economy in 2020:
The growth in India's Gross Domestic Product (GDP), simply put the national income, has tumbled to its slowest in six years. While many are hoping that this would the point from which it will bounce back, CLSA sees more pain in store.