Projected annual growth of 5 pc exaggerated, puffery: Chidambaram

A day after the government released first advance estimates of GDP numbers for the current financial year (2019-20) pegging the growth at 5 per cent, former finance minister and senior Congress leader P Chidambaram on Wednesday said that the projected annual growth of 5 per cent is "exaggerated and puffery."

"The Advanced Estimates of National Income 2019-20 released yesterday tells the story of neglect and mismanagement of the economy by the BJP government," Chidambaram wrote on Twitter.

"The projected annual growth of 5 per cent is exaggerated and puffery. The growth in the first half was 4.75 per cent. It is difficult to believe that growth in the second half will be 5.25 per cent," he added.

Chidambaram further stated that the boast of the government that millions of jobs are being created is a "big lie".

"Key sectors will grow at below 5 per cent, in fact not more than 3.2 per cent. These include Agriculture, Mining, Manufacturing and Construction. Thus, all employment generating sectors will grow at paltry rates of 3.2 per cent or below. The boast of the government that millions of jobs are being created is a big lie," Chidambaram tweeted.

"GFCF at current prices in 2019-20 will be 28.1 per cent, one of the lowest in recent years and a sharp fall from the peak. Conclusion: business persons are loath to invest in India. Per capita GDP will grow at 4.3 per cent. This is the average and means that the vast majority of Indians will see little or no growth in their income and quality of life," he added.