Economic slump due to “all-round mismanagement” by Modi regime: Manmohan Singh
India cannot afford to continue down this path. Therefore, I urge the government to put aside vendetta politics, and reach out to all sane voices and thinking minds, to steer our economy out of this man-made crisis, Singh said in his statement.
Calling the current state of the financial system in India “deeply worrying,” former Prime Minister Manmohan Singh has blamed the Narendra Modi led government for the “mismanagement” of the economy, leading to an economic slowdown.
In a video statement released on the official Twitter handle of the Congress party, Manmohan Singh, the veteran Congress leader and economist said, “the state of the economy today is deeply worrying. The last quarter’s GDP growth rate of 5 percent signals that we are in the midst of a prolonged slowdown. India has the potential to grow at a much faster rate, but all around mismanagement by Modi government has resulted in this slowdown.”
Singh’s statement comes two days after the government released data confirming that India’s economy grew at its slowest pace in over six years, in this last quarter ending June.
The GDP stood at 5 per cent within the first quarter of the present Financial Year 19-20 in contrast with 5.8 per cent within the earlier quarter. The GDP growth rate was 8.0 per cent for the quarter which ended on June 30, 2018.
"India cannot afford to continue down this path. Therefore, I urge the government to put aside vendetta politics, and reach out to all sane voices and thinking minds, to steer our economy out of this man-made crisis", Singh said in his statement.
Singh, who, apart from being a former Prime Minister, is also a former Finance Minister and Governor of the Reserve Bank of India (RBI), said it was now a testing time for the country’s central bank RBI.
"The resilience of the reserve bank will be tested after its record transfer of Rs 1.76 lakh crore to the government, which claims it does not have a plan on what it will do with the windfall", he said.
Terming it a time of “tax terrorism” and unemployment growth, Singh said more than 3.5 lakh jobs have been lost in automobile sector alone.
Similarly, large scale job losses in the informal sector hurts our most vulnerable workers, he said. He also pointed a finger at Finance Minister Nirmala Sitharaman for “shaking the confidence of international investors.” He said, “the budget announcements and rollbacks have shaken the confidence of international investors.”