INSUBCONTINENT EXCLUSIVE:
ANI | Updated: Sep 01, 2019 11:01 ISTNew Delhi (India), Sep 1 (ANI): As the economic growth slumped to a seven-year low of 5 per cent in
April to June quarter, former Prime Minister and seasoned economist Manmohan Singh hit out at Prime Minister Narendra Modi-led government
alleging that the government's "all-round mismanagement" is responsible for the "worrisome" state of economy."The state of the economy today
The last quarter's GDP growth rate of 5 per cent signals that we are in the midst of a prolonged slowdown
India has the potential to grow at a much faster rate but all-round mismanagement by the Modi government has resulted in this slowdown,"
said Manmohan Singh.He highlighted the dismal growth in the manufacturing sector and said that the economy is still reeling under the
aftermaths of demonetization and hastily implemented GDP
"It is particularly distressing that the manufacturing sector's growth is tottering at 0.6 per cent
This makes it very clear that our economy has not yet recovered from the man-made blunders of demonetization and a hastily implemented GST,"
said Singh."Domestic demand is depressed and consumption growth is at an 18-month low
The nominal GDP growth is at a 15 year low
There is a gaping hole in tax revenues
Tax buoyancy remains elusive as businessmen, small and big, are hounded and tax terrorism continues unabated
Investor sentiments are in the doldrums
These are not the foundations for economic recovery," he added."The Modi government's policies are resulting in massive job-less growth
More than 3.5 lakh jobs have been lost in the automobile sector alone
There will similarly be large scale job losses in the informal sector, hurting our most vulnerable workers," said Singh."Rural India is in
Farmers are not receiving adequate prices and rural incomes have declined
The low inflation rate that the Modi government likes to showcase comes at the cost of our farmers and their incomes, by inflicting misery
on over 50 per cent of India's population," said former Prime Minister.He alleged that the institutions are under attack and their autonomy
is being eroded."Institutions are under attack and their autonomy is being eroded
The resilience of the RBI will be tested after its record transfer of Rs 1.76 lakh crores to the government, which claims that it does not
have a plan on what it will do with this windfall," said Singh"In addition, the credibility of India's data has come under question under
Budget announcements and rollbacks have shaken the confidence of international investors
India has not been able to increase its exports to take advantage of opportunities that have arisen in global trade due to geopolitical
Such is the state of economic management under the Modi government," he said.He said that the government must strive to steer the economy
out of this "man-made crisis.""Our youth, farmers and farmworkers, entrepreneurs and the marginalized sections deserve better
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," he said.Singh served as the Prime Minister of India from 2004 to 2014
As a finance minister in 90's he is said to have played key role in bringing several structural reforms that liberalized India's economy.The
economic growth slowed to a seven-year low of 5 per cent in April to June quarter from 8 per cent a year ago, government data showed on
The slowdown was largely due to a sharp dip in the manufacturing sector and agriculture output, said the Ministry of Statistics and
Programme Implementation in a statement.The previous low was recorded at 4.9 per cent in April to June 2012-13
Consumer demand and private investment have weakened amid global trade frictions and dampening business sentiment.The manufacturing sector
grew by 0.6 per cent as compared to a growth of 12.1 per cent in Q1 2018-19
Agriculture, forestry and fishing' sector grew by 2 per cent as compared to growth of 5.1 per cent in Q1 2018-19.Although the Reserve Bank
of India has cut the key lending rate four times in succession by a total of 110 basis points, several economists are apprehensive of this
translating into growth soon
One basis point is one-hundredth of a percentage point.The ongoing economic slowdown has started hurting corporates as well, with companies
reporting a sharp decline in both revenue and profit growth numbers in the June quarter
