Modi govt has got Indian economy stuck in a rut: Chidambaram
Cites sales, credit growth numbers to buttress claim, says ball in government’s court on GST Bill
NEW DELHI: The Congress kick started its New Year launching an attack on Prime Minister Narendra Modi’s performance on the economic front.
Former finance minister and senior party spokesperson P Chidambaram presented data and statistics to show how the economy is “stuck in a groove” and said, “The Indian economy is like a car running on two wheels.” He also maintained that the government, which accuses the Congress of delaying the passage of the GST bill, is yet to give its written reply to the key demands of the principal opposition party.
“We have not yet received the written response of the government or the revised formulations of the government on the three principal objections,” he said. “So, the ball is entirely in the government’s court. It is for them to come back to us and tell us whether they are accepting our objections, whether they are revising the formula, whether they are amending the section.”
A day after the Prime Minister urged the Congress to take a New Year resolution to not stall parliament proceedings, Chidambaram maintained the government has not been able to fulfill its promises. “More jobs, greater investment and quicker infrastructure development – were premised on a high growth of GDP. I am afraid none of the promises has materialised. On the contrary, 2015 has ended on a sombre and subdued note,” he said.
The former finance minister also argued that since the GDP growth for 2015-16 is not likely to be higher than 7% to 7.3%, the economy is stuck in a groove.
The Congress also cited the mid-year economic analysis of the finance ministry to point out that private investment and exports are not growing and Corporate balance sheets are “stressed”. “Net sales have fallen by 5.3%, and profit after tax is flat. Non-food credit growth at 8.3% is the slowest in 20 years. Growth of credit to industry is 4.6% while credit to medium enterprises has actually shrunk by 9.1%,” Chidambaram pointed out.
According to the Congress, the decline in exports for 12 successive months compared to the corresponding periods of the previous year, is unprecedented.
The principal opposition party flagged distress in rural India, a focus area of the NDA government. The former FM, whose government was been accused by the BJP of policy paralysis, on Friday charged that “explicit and deliberate policy decisions” have resulted in muted growth of rural wages.
“The mid-year analysis has warned that there are downside risks to agricultural production this year,” Chidambaram said.