Prasad caught on a wrong foot

High film earnings show economy in good state, says law minister

Union minister Ravi Shankar Prasad on Saturday stoked a controversy by linking film collections with the state of the economy. Addressing a press conference in Mumbai, the minister claimed that a film trade analyst had said that three films on October 2 grossed nearly Rs 120 crore. This, the minister believed, showed that everything was fine with the economy.

Claiming that the fundamentals of the economy remain strong, the Union minister said, “I was also told that on October 2, which is observed as one of the national holidays, three Hindi movies garnered `120 crore. Unless the economy is strong, how could three movies do so much business in a single day” the minister questioned.

Vishwas Uttagi, a wellknown activist, questioned the Union minister’s claim. “How can he make such a comment? It shows his poor knowledge of the economy. Cinema will never be parameter to measure economy growth,” he said.

Mr Uttagi further warned that industrial growth was deteriorating at a rapid pace. He said that sectors like automobile, cement and real estate were facing huge losses due to a decline in consumer demand.

“We can’t say economy is growing till these sectors earn profit. If there is no recession then why public sector companies like BSNL, BPCL and MTNL are being sold to private entities,” he added.

However, Abhay Pethe, senior economist of Mumbai school of Economics and Public Policy, said that the minister’s statement would not cause any harm to the economy.

Three Hindi movies garnered `120 cr. Unless the economy is strong, how could three movies do so much business in a single day. — Ravi Shankar Prasad, Law minister