Former Prime Mnister Manmohan Singh on Sunday said that the state of the Indian economy is deeply worrying due to the Narendra Modi government’s “all-round mismanagement”.
In a video statement, Manmohan Singh said that the growth rate of 5% in the last quarter is indicative of a “prolonged” economic slowdown.
“It is particularly distressing that the manufacturing sector’s growth is tottering at 0.6%. This makes it very clear that our economy has not yet recovered from the man-made blunders of demonetisation and a hastily implemented GST,” Manmohan sigh said.
Manmohan Singh also said that the gaping hole in tax revenues have resulted in a depression in investments. “Domestic demand is depressed and consumption growth is at an 18-month low. Nominal GDP growth is at a 15-year low,” he said, while adding, “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 doldrums. These are not the foundations for economic recovery.”
The former Prime Minister maintained that the Narendra Mod government’s policies had resulted in massive unemployment costing over 3.5 lakh jobs lost in the automobile sector alone. “Modi government’s policies have resulted in jobless growth. There will similarly be large scale job losses in the informal sector, hurting our most vulnerable workers,” he said.
Manmohan Singh further stated that the deteriorating economic condition of the country has put India’s credibility under questionable circumstances, thereby shaking up the confidence of international investors.
“The credibility of India’s data has come under question under this government. 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 realignments. Such is the state of economic management under the Modi government,” he said.
Our economy has not recovered from the man made blunders of demonetisation & a hastily implemented GST... I urge the govt to put aside vendetta politics & reach out to all sane voices to steer our economy out of this crisis: Former PM Dr Manmohan Singh #DrSinghOnEconomicCrisis pic.twitter.com/83cBJWHay9
— Congress (@INCIndia) September 1, 2019
Here is the full text Manmohan Singh’s statement
The state of the economy today is deeply worrying. The last quarter’s GDP growth rate of 5% 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 slow down.
It is particularly distressing that the manufacturing sector’s growth is tottering at 0.6%. This makes it very clear that our economy has not yet recovered from the man-made blunders of demonetisation and a hastily implemented GST.
Domestic demand is depressed and consumption growth is at an 18-month low. 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 doldrums. These are not the foundations for economic recovery.
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.
Rural India is in terrible shape. 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.
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.
In addition, the credibility of India’s data has come under question under this government. 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 realignments. Such is the state of economic management under the Modi government.
Our youth, farmers and farm workers, entrepreneurs and the marginalised 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.