ALSO READQ2 GDP figure out today: Stronger growth likely as businesses adjust to GST Down and out Political spokespersons, untutored in data, should not debate GDP on TV Economy rebounds: GDP growth rate rises to 6.3% in September quarter Tax-GDP ratio to increase 30 bps for next two fiscals: Report
There is a decline in new projects and fresh investment, Chidambaram claimed in a statement.
The informal sector is reeling under the ill effects of demonetisation. Job creation is abysmal, exports are plunging, and manufacturing sector growth has slowed down. The agriculture sector has been hit hard and rural despair is abundant, he claimed.
Job creation remained the "single biggest failure" of the BJP government. The bank credit growth was extremely sluggish and it did not bode well for the economy, he said.
"The worst fears of an imminent economic slowdown have come true. The Modi governments tall claims of India growing at a robust growth rate have evaporated into thin air," Chidambaram said.
"No amount of sugar coating, false bravado and rhetoric along with headlines management can conceal the stark reality. Our fears and warnings have proved true," the Congress leader said.
He said the recent social discontent could be a "direct manifestation of this economic slowdown, which the government was conveniently hiding".
It was the time the government stopped making tall claims and did some solid work, he said.
Citing government data, the former finance minister said the GDP growth rate was 8 per cent in 2015-16, 7.1 per cent in 2016-17. It is estimated at 6.5 per cent in 2017-18, "which proves there is a slowdown".
A decline in economic activity and growth meant loss of millions of jobs, he said.
While the GDP growth is estimated at 6.5 per cent during 2017-18 as compared to 7.1 per cent in 2016-17, the anticipated growth of real GVA at basic prices in 2017-18 is 6.1 per cent as against 6.6 per cent in 2016-17, he said.
Retail inflation soared to a 15-month high of 4.88 per cent in November and industrial output hit a three-month low of 2.2 per cent in October, he pointed out.
"The investment picture remains bleak... The manufacturing sector has seen the sharpest fall and fiscal deficit is likely to overshoot the budget estimates of 3.2 per cent of GDP," the Congress leader said.