GDP figures unacceptable, state of economy ‘worrying’: Manmohan Singh

Singh was speaking at the National Economy Conclave in New Delhi.

The remarks by the former prime minister come just after data released by National Statistical Office (NSO) Friday showed that India’s GDP growth slipped to a 26-quarter low of 4.5 per cent in the second quarter (July-September) of the current fiscal.

‘State of our society worrisome’

Singh also said that the state of the economy is worrying but the state of our society is “even more worrisome”, adding that there exists a “palpable climate of fear” in our society.

“Many industrialists tell me they live in fear of harassment by government authorities. Bankers are reluctant to make new loans, for fear of retribution. Entrepreneurs are hesitant to put up fresh projects, for fear of failure attributed to ulterior motives,” Singh said.

Explained: Why GDP rate at 4.5% now makes RBI projection hard to achieve

“Policymakers in government and other institutions are scared to speak the truth or engage in intellectually honest policy discussions. There is a profound fear and distrust among our various economic participants,” he added.

Singh also urged Prime Minister Narendra Modi to “set aside his deep-rooted suspicion of our society” and help the economy.

“I urge the Prime Minister to set aside his deep-rooted suspicion of our society and nurse us back to a harmonious, confident and mutually trustworthy society that can revive the animal spirits and help our economy soar,” Singh said while ending his speech.