After the reports came out that India’s first-quarter GDP of 2019 has been growing at only 5%, former Indian prime minister and economist Manmohan Singh slammed Modi government’s policies for an economic slowdown in India.
India has the potential to grow at a much faster rate, but the all-round mismanagement by the Modi government has resulted in this slowdown,” said Mr. Singh.
He called the slowdown a “man-made crisis” and blamed the Modi’s government for a tough decision of demonetization and a “hastily implemented GST” for the present condition of the economy. The Congress representative released on a statement on his twitter account and said more than 3.5 lakh employees have lost their jobs in the automobile sector alone and also pointed out on large-scale job losses in the informal sector.
“Domestic demand is depressed and consumption growth is at an 18-month low. The 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 the doldrums. These are not the foundations for economic recovery,” he said.
Takin the rural distress into consideration, Mr. Singh said: “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% of India’s population.”
Speaking about RBI’s transfer of 1.76 trillion to the government’s account, he accused the government of attacking the autonomy of various institutions.