Chidambaram attributes high GDP growth to low-base effect

Former Union finance minister P Chidambaram said Saturday that the GDP growth, reported at 8.2 per cent in April-June quarter, can decline going forward as the rise was possibly because of the low-base effect.

Speaking to media here, he also said tumbling of the rupee against the US currency was because of reasons such as fiscal deficit and foreign investors pulling out their money.

Asked about impressive GDP growth in the first quarter of this fiscal, Chidambaram said, "Going further 8.2 per cent GDP growth will decline. 8.2 per cent is because of lowest base in last eight quarters and several economists have already said it today it is because of low base of 5.6 per cent."
Earlier in the day, he tweeted, "Q1 GDP at 8.2 per cent is a statistic. Rupee at 70 to a dollar is a reality. In Delhi, Diesel at Rs 70.21 and Petrol at Rs 78.52, is a cruel blow."