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Chidambaram slams govt on GDP forecast, says 'worst fears have come true'

Job creation remained the 'single biggest failure' of the BJP government, the former finance minister said

Press Trust of India  |  New Delhi 

Congress leader and former Union Finance Minister P. Chidambaram outside the Parliament House in New Delhi
Congress leader and former Union Finance Minister P. Chidambaram outside the Parliament House in New Delhi. Photo: PTI

Senior leader P on Saturday hit out at the government over lower growth estimates for the current fiscal, saying the worst fears of an imminent economic slowdown have come true.

There is a decline in new projects and fresh investment, claimed in a statement.

The informal sector is reeling under the ill effects of Job creation is abysmal, exports are plunging, and manufacturing sector growth has slowed down. The sector has been hit hard and rural despair is abundant, he claimed.

Job creation remained the "single biggest failure" of the 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," 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 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 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 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 leader said.

First Published: Sat, January 06 2018. 15:16 IST
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