‘Extraordinarily foolish note ban has set back economy’

The first is investment to GDP ratio, the second is credit growth and the third is the number of jobs that were created.

By: Express News Service | New Delhi | Published:June 2, 2017 5:01 am
P Chidambaram, P Chidambaram on Indian economy, demonetisation, demonetisation effect on Indian economy, indian express news Former finance minister P Chidambaram (File Photo)

Former Finance Minister P Chidambaram on Thursday said the “extraordinarily foolish measure” of demonetisation had further “set back” the Indian economy, which was slowing down, and argued that the economy will “go down further” if the government does not take corrective steps. Chidambaram’s criticism of the government, in the form of a video statement released by the Congress, came a day after data released by the Central Statistics Office (CSO) showed that the GDP in the January-March quarter grew at the slowest pace in at least four quarters — at 6.1 per cent against 7 per cent in October-December.

Reacting to the CSO data, Chidambaram said all was not well with the Indian economy. “I don’t know how the government will go forward. But how long can the government fool itself and fool the people of India by saying all is well and we are on the right course? All is not well. We are not on the right course. Investments are declining, credit growth is negative in most sectors and there are no jobs. The economy is going down very rapidly and unless corrective steps are taken, the economy will go down even further. We have warned the government. We are forewarning the people of India. Let’s see how the government responds to the CSO’s figures,” Chidambaram said.

“By the new method of measurement… gross value addition… there is a decline from 7.9 per cent in 2015-16 to 6.6 per cent in 2016-17. That is a decline of 1.3 per cent…. When demonetisation was done, I had predicted that the economy will take a hit between 1 and 1.5 per cent. What the Congress and the Opposition had been saying has been proved true,” he said.

He said the government, instead of taking steps to arrest the slide in the economy in the middle of 2016, had come up with the “extraordinarily foolish measure of demonetisation and that has set back the economy even further.” “In the meanwhile, millions of people plunged into misery. We have been pointing out that the three indicators of a vibrant economy are down. The first is investment to GDP ratio, the second is credit growth and the third is the number of jobs that were created. And all three indicators, the government has totally failed and the CSO has proved us correct and has proved the government wrong,” he said.

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  1. V
    Venkataraman Jagadesan
    Jul 8, 2017 at 10:36 am
    We all know why he and others are crying foul on demonetization? Logically speaking this should have been done long time back but the congress allowed the black money to run a parallel economy to ruin our economy. When the demonetization was announced suddenly it shocked many politicians , businessmen and the BABUs who were ding billions of black money in their hiding place. If they had smelt it coming then they would have done some jiggery pokery and got it converted in to gold and benami properties, but the NDA did not allow it. May be that the ex-fm was worst affected! A radical surgery was needed and it was done so all crooks became dumbfounded. Jai HInd.
  2. S
    Jun 2, 2017 at 11:53 pm
    after CBI raid on son ,father remembers abt demonetisation , having fun media i guess
  3. S
    Jun 2, 2017 at 10:36 pm
    If preachers are to really w heartedly to support countrys' growth in letter and spirit they must come out of the allegations levelled and are being probed against them and their family members. Devils will not be apreached preaching Vedas.
  4. S
    Sankaran Krishnan
    Jun 2, 2017 at 4:27 pm
    The so called Economist PM Man Mohan Singh of UPA and the man who had submitted a DREAM Budget and call themselves as highly Intellectual and headed the Finance Ministry in the corrupt UPA , what the you had done for the Indian Economy to grow other than indulged in scams and loots ???
  5. S
    Sankaran Krishnan
    Jun 2, 2017 at 4:23 pm
    Yes we had seen the extraordinary foolishness of the corrupt UPA which governed for a decade and how they had looted in the name of various scams is known to the w world . Also when the then Opposition parties (including your present allies of congress) cried from the roof top the likes of MMS, PC and Kapil Sibals etc., denied and instead came out with zero loss theory which Chidambaram conveniently forgotten. Apart from the Ministers in UPA Govt. the Minister's son, kith and kin are allowed to loot and they indulged in various scams that are being monitored by the court which the back door entry RS MP forgotten and instead justified !!!!
  6. K
    Jun 2, 2017 at 4:03 pm
    All learned Economists and Nobel Prize winners like Paul Krugman have been warning that there is no economic sense in the Note Ban and that has been proved to the dot. It is now clear that India's economy is in the wrong hands of a Tea-Seller who is surrounded by a coterie of sycophants in Niti Ayog and Cabinet. God save India. All Learned people should rally and vote this Govt. out in 2019.
  7. R
    Jun 2, 2017 at 3:40 pm
    No Job and economy is going down. Just by using its IT Cell , bjp cannot fool for long time.
  8. K
    Kamal Pasha
    Jun 2, 2017 at 12:24 pm
    This is not Modi's fault. Public should be blamed for voting this useless party to power. What have they done in last 3 years. Kashmir, Tamil Nadu, Kerala, am, Punjab and many more states are rising for independance. This party has created hate between different castes and minorities. BJP is on the way to Civil War.
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