A day after the National Statistical Office (NSO) estimated that the Gross Domestic Product (GDP) growth rate would marginally rise to 5.25 per cent in the second half of the financial year, former finance minister P Chidambaram Wednesday said the projected numbers were “exaggerated and puffery”. He also targeted the BJP-led government for its “neglect and mismanagement” of the economy.
“The Advanced Estimates of National Income 2019-20 released yesterday tells the story of neglect and mismanagement of the economy by the BJP government. The projected annual growth of 5 per cent is exaggerated and puffery. The growth in the first half was 4.75 per cent. It is difficult to believe that growth in the second half will be 5.25 per cent,” he tweeted.
Chidambaram predicted that key sectors, including agriculture, mining, manufacturing and construction, would not grow more than 3.2 per cent in the second half. “Key sectors will grow at below 5 per cent, in fact not more than 3.2 per cent. These include Agriculture, Mining, Manufacturing and Construction. Thus, all employment generating sectors will grow at paltry rates of 3.2 per cent or below,” he said, adding the government’s claim that millions of jobs were being created was “a big lie”.
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“GFCF at current prices in 2019-20 will be 28.1 per cent, one of the lowest in recent years and a sharp fall from the peak. Conclusion: business persons are loath to invest in India,” Chidambaram said. “Per capita GDP will grow at 4.3 per cent. This is the average and means that the vast majority of Indians will see little or no growth in their income and quality of life.”
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