P Chidambaram counters Arun Jaitley’s claims, says economy is ‘rapidly’ declining

P Chidambaram says the economic growth will further decline if the government does not take corrective measures.

By: Express Web Desk | New Delhi | Updated: June 1, 2017 8:51 pm
P Chidambaram, Arun Jaitley, GDP growth, Demonetisation Former finance minister P Chidambaram (File Photo)

Hours after Finance Minister Arun Jaitley said India’s GDP growth was ‘reasonable’ considering the current global situation, former finance minister P Chidambaram said the economy is ‘going down rapidly’. He added that the government has failed in all the three indicators which depict a vibrant economy – investment to GDP ration, credit growth and numbers of jobs created. India GDP growth for the year 2016-17 slowed to a three-year low of 7.1 per cent, the government announced yesterday. GDP growth for the March quarter was pegged at 6.1 per cent.

“There are three indicators of a vibrant economy – investment to GDP ratio, credit growth and numbers of jobs created; on all three, the government has failed,” Chidambaram was quoted as saying by news agency ANI. “If corrective measures are not taken, the economy will decline further.”

He also tweeted, “I had said Demonetisation will affect growth by 1-1.5 per cent. Spot on. GVA down by 1.3 per cent. Economy began slowing down in July 2016. Demonetisation made it worse. Between Q4 of 2015-16 and Q4 of 2016-17, growth declined by 3.1 per cent.”

The industry on Wednesday attributed the slow down in economic growth to the government’s decision to demonetise high currency notes last year. Ficci president Pankaj Patel had said the fourth quarter figures point towards moderation which can be attributed to to demonetisation. Assocham president Sandeep Jajodia had said, “One only hopes that the impact of demonetisation has played out and does not spill into the current financial year.

Addressing a press conference regarding the Narendra Modi-led government’s performance in the last three years, Jaitley had defended GDP growth saying, “There are several factors which affect GDP. Even before demonetisation, there was some slowdown. I do believe, that in the current global situation, a 7 to 8 per cent growth which is at the moment an Indian normal, is a reasonable growth. I don’t see any adverse impact of the GST.” He added that the NDA government has ‘restored’ the ‘credibility’ of the economy.

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  1. K
    Kanu
    Jun 2, 2017 at 8:08 am
    Only hi dynasty slaves will take a money launderer's BS seriously. He sees economy thru the eye of his corruption commission agent Karti's eyes. Whose business is down since Chidu is not in office.
    Reply
    1. K
      Kanu
      Jun 2, 2017 at 8:09 am
      Read hi as hi
      Reply
      1. K
        Kanu
        Jun 2, 2017 at 8:10 am
        hi as Gan_dhi
    2. S
      Silly Silly
      Jun 2, 2017 at 5:09 am
      Chiddu's economic analysis is similar to that jyotishi's forecast who cannot accurately predict his own future.
      Reply
      1. P
        PL
        Jun 2, 2017 at 5:07 am
        I think Chidamabram should give rest to his mind and mouth and wait till 2019 and then results will tell which way he should go and what should he do. Till then let others do their work. They are equally knowledgeable if not more. He is wasting his time. Pranab Mukherjee was a better fiance minister and Chidu tried to side line him as well.
        Reply
        1. P
          Punekar
          Jun 2, 2017 at 11:46 am
          Yes true, Pranabda started the western funds exodus out of India after the retrospective tax fiasco on Vodafone.
          Reply
        2. S
          S.P.Chakravarty
          Jun 2, 2017 at 2:02 am
          Protection of cow vigilantes and beating up 'anti-nationals' at college campuses are policies that disturb government focus on the economy.
          Reply
          1. T
            THATHAMAN
            Jun 1, 2017 at 11:56 pm
            TRUTH IS BITTER. P.CHIDAMBARAM IS BRING OUT THE FACTS. NATURALLY BHAKTS WILL NOT LIKE IT.THEY ABUSE AND REDICULE HIM. DEMONETESATION IS TOTAL FAILURE. EVERY THING NEW EXCEPT UPA FOLLOW UP SCHHEMES ARE TOTAL FAILURE IN LAST THREE YEARS.MODI HAD ED UP KASHMIR TO THE EXTEND HE GETS NIGHTMARES. COUNTRY IS ON THE GRIP OF TOTAL MISFORTUNE. NERO FIDDLES WHEN ROME BURNS. MODI SINGS VANDE MATRAM AND MAKE AIRFORCE AND ARMY CHIEFS TO JOIN THE CHORUS. MODI BANKS ON FALSE PROBA A AND VOTE DIVISION FOR ANOTHER TERM. ONLY GOD CAN SAVE INDIA
            Reply
            1. C
              Capt GRC
              Jun 1, 2017 at 9:40 pm
              A politically aligned Baba pseudo economist discussed Demonitisation with PM Modi prior to 8 Nov 16. In one stroke within hours Rs1000 & Rs500 notes were out of circulation. Aim- to crush terrorism, naxalism, unearth black money & eliminate fake currency. Long queues at the Banks. Mismanagement ruled across the country as enough currency was not ready. Poor/common citizens faced untold misery & about 150 lost their lives during this senseless, unplanned, politically motivated financial emergency. BJP & their tycoon friends had managed their conversation of old currency prior to Demonitisation as also during the 50 day period Modiji gave. PM cried in public with folded hands as he realised his grave error. Then the back office boys started shifting goal posts everyday to cover up one b er by the PM with multiple explanations. Digital banking, PayTm knowing fully well that internet access & coverage is meagre in the country. Almost 80 area does not have connectivity. Result slowdown
              Reply
              1. A
                Anmol
                Jun 1, 2017 at 9:28 pm
                Modi government has ruined the economy. The unorganised sector is most affected and that is not taken into consideration when the government comes up with the growth figure. Hopefully Chidambaram will set it right in 2019.
                Reply
                1. C
                  Citizen
                  Jun 1, 2017 at 8:45 pm
                  Yes Mr.Chiddu the great ziddu of the nation the congi stalwarts economies are crumb and their misdeeds are going to ripe and fall into Thihar. Probably that is the reason many a common guy is voting to Namo and sending the other guys to dustbins!!! Probably some guys may say it is not the majority but that is what we got from that mutilated abridged amended rule book many claim a great creation by a great man for their own vote bank sake so why not s that and get a new one that can meet the needs of today's society's mind set??? Jaihind
                  Reply
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