Former prime minister Manmohan Singh on Monday struck a cautionary note stating that the Indian economy is not in a good shape and added that several rating agencies, including the International Monetary Fund (IMF) has downgraded the Gross Domestic Product (GDP) growth rate from 7.6 percent to 6.6 percent.
Releasing a document titled ‘Real State of the Economy 2015’, two days ahead of Budget Session, Singh said, “Indian economy is not in good shape is so obvious. Even the IMF has projected that the growth rate of India in the current fiscal year will not be 7.6, but less than that, i.e. 6.6 percent. There are several other rating agencies which have made similar projections.”
Former finance minister P. Chidambaram, who was also present at the joint press conference, said the document presents true assessment of the state of India’s economy and is supported by hard research and data. “Yet if the government presents a rosy picture of the economy tomorrow, people of India are entitled to question that,” he said. Pointing out that the Congress-led United Progressive Alliance (UPA) government was able to deliver 7 percent GDP during its 10-year tenure, Chidambaram said the current dispensation has failed to sustain the growth rate and has failed to create jobs for the people.
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“There are no jobs, capital formation is declining. Credit growth is the lowest in several decades. People of India are asking the questions: Where are the jobs? Where is new capital investment? Where is credit growth?” he said. The BJP earlier today cited a report stating that the UPA government facilitated loans to Mallya after he allegedly wrote to Singh and former finance minister P. Chidambaram in 2011 and 2013. Reacting to the BJP’s claim, Singh said, “It was a normal routine transaction and therefore the letter that’s being talked about is nothing but an ordinary piece of paper.”