World Economy

Indian Economy Not in Good Shape

Indian Economy Not in Good ShapeIndian Economy Not in Good Shape

Accusing the Narendra Modi government of “presenting a rosy picture of the Indian economy”, former prime minister Manmohan Singh and finance minister P. Chidambaram Monday claimed the ruling Bharatiya Janata Party is hiding behind a GDP number which can be easily challenged.

“The Indian economy is not in a good shape,” Manmohan Singh said in a press conference he addressed with Chidambaram in New Delhi, a day before the government presents the economic survey, India Today reported.

“Tomorrow is the day when the government will present its economic survey. We thought it a good idea that we should also bring out a document that sets out what we consider is the real state of the economy,” Singh, a former RBI governor who has been critical of Modi government’s decision to invalidate old banknotes of Rs 1,000 and Rs 500, said at a press briefing while he released the ‘Real State of Economy’, a document the Congress has drawn up.

“So that the country as a whole has the ways and means of assessing where the economy is, where it is heading to and what can be done to bring it on the right path.”

“Indian economy is not in good shape is now obvious. The IMF has projected that the growth rate of India this current fiscal year will not be 7.6% but 6.6%. Several other agencies have made similar projections,” Singh said. 

Chidambaram said the state of the Indian economy is not something we could be happy about. “The BJP is hiding behind a GDP number which is being challenged. People are not dazzled by it, but are asking where the jobs are,” he said.

“Where are the jobs? Where is new capital investment? Where is credit growth? There are no jobs, capital formation is declining, credit growth is the lowest in several decades,” he said.

“Yet if the government presents tomorrow a rosy picture of the economy, people of India are entitled to question that,” Chidambaram said.

The senior Congress leader said while every government has a right to be optimistic, “the optimism must stem from a realistic assessment of the situation”.

“The NDA government tends to believe in an exaggerated version of the economy. This research document is closer to truth than what government will say tomorrow,” he said.

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