If there are no jobs, there is no demand. If wages come down, purchasing power collapses, and so does the economy. Wall Street laughed at him but his sales soared. Demand is down because the government is not spending enough. In fact, it was able to keep within the budgeted fiscal deficit by saving on investments.
Net result is poor growth in overall demand, and, of course, recession.
The key to growth in a country like India is employment. Yet the government is doing the opposite. Companies are laying off people and so is the government. This may be good in the long run, but it does not help the economy in the short run. The private sector will not be able to absorb the exodus from the public sector, because it has to compete with imports and has to keep an eye on costs.