National affairs

Dr. Manmohan Singh slams the Modi Government on the state of the Indian economy.

‘Worrisome’: Manmohan Singh faults Centre’s policies for GDP slumpFormer prime minister Manmohan Singh said that the state of economy is a reflection of state of its society. “Our social fabric of trust and confidence is now torn and ruptured,” he said.

Former Prime Minister Dr Manmohan Singh during the Indira Gandhi Prize for Peace, Disarmament & Development on November 19. 2019.(Sonu Mehta/HT PHOTO)Updated: Nov 29, 2019 20:36 IST

By HT Correspondent , Hindustan Times, New Delhi

Former prime minister Manmohan Singh on Friday said the state of Indian economy is deeply worrying and the GDP figures released on Friday showcasing sharp decline is clearly unacceptable.

“GDP figures released today are as low as 4.5 per cent. This is clearly unacceptable. Aspiration of our country is to grow at 8-9 per cent. Sharp decline of GDP from 5 per cent in Q1 to 4.5 per cent in Q2 is worrisome. Mere changes in economic policies will not help revive the economy,” the former prime minister said.

Watch | Need to change society’s climate for economic growth: Manmohan Singh

The Gross Domestic Product (GDP) growth was recorded at 7 per cent in the corresponding quarter of FY 2018-19. In the previous quarter of the ongoing fiscal, the economic growth was 5 per cent. This GDP growth data for the September 2019 quarter is the lowest since January-March of 2012-13, when it was registered at 4.3 per cent.

According to the data released by National Statistical Office (NSO), the gross value added (GVA) growth in the manufacturing sector contracted by 1 per cent in the second quarter of this fiscal from 6.9 per cent expansion a year ago.

Singh added that the state of Indian economy is deeply worrying but the state of Indian society is even more worrisome.

“We need to change current climate in our society from one of fear to one of confidence for our economy to start growing at 8 per cent per annum. State of economy is a reflection of state of its society. Our social fabric of trust and confidence is now torn and ruptured,” Singh said.

Minutes after the GDP figures were released, the Congress panned the BJP government over the GDP growth falling to 4.5 per cent, and said this is the lowest GDP recorded in six years.

Congress chief spokesperson Randeep Surjewala alleged that for the BJP, the GDP was “Godse Divisive Politics”. He was referring to the ongoing row surrounding a BJP MP’s remarks on Mahatma Gandhi’s assassin Nathuram Godse.

“India’s GDP has collapsed to an abysmal 4.5%. We are in a virtual free-fall. This is the lowest GDP quarter in 6 years. But why is the BJP celebrating? Because their understanding of GDP (Godse Divisive Politics) suggests double digit growth levels. All in the perspective,” he said on Twitter.

(With inputs from PTI and ANI)