“All-Round Mismanagement” By Modi Govt Led To Slowdown: Manmohan Singh
New Delhi: The state of the economy today is deeply worrying, former Prime Minister Dr. Manmohan Singh said, adding that “all-round mismanagement” by Prime Minister Narendra Modi’s government has resulted in the slowdown.
The veteran Congress leader and renowned economist’s comments come two days after government data showed that the Indian economy expanded at its slowest pace in over 6 years in the quarter ended June 30.
Growth in the country’s gross domestic product (GDP) stood at 5 percent in the first quarter of the current financial year (2019-20), compared with 5.8 percent in the previous quarter, and 8.0 percent in the quarter ended 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,” Dr. Singh said in a video statement.
“The last quarter’s GDP growth rate of 5 percent signals that we are in the midst of a prolonged slowdown,” he said, adding that the country has the potential to grow at a much faster rate.
Dr. Manmohan Singh is widely recognised for the economic reforms which he announced in 1991 when he was the Finance Minister in the Narasimha Rao government.
Sliding for the fifth quarter in a row, economic expansion came in at the slowest pace since the March 2013 quarter, when it had stood at 4.3 percent. A slowdown in the sale of cars to biscuits and lakhs of estimated job cuts across sectors plagued the economic growth of the country, say analysts.
In its bid to push investments and revive growth, the government has announced a range of measures in the past few days, including easing of FDI or foreign direct investment norms in four sectors, and a reversal of higher taxes on foreign investors as announced in Budget.