Indian economy's growth slumped to a six-year low of 5 per cent. PHOTO: GULF NEWS
After the Indian economy's growth slumped to a six-year low of 5 per cent, former prime minister Manmohan Singh has slammed the Narendra Modi-led government's policies for the economic slowdown.
"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 the eminent economist said, according to Gulf News.
Calling the slowdown a "manmade crisis", Singh, in a detailed statement, primarily blamed the Modi government's decision of demonetisation and a "hastily implemented GST" for the current state of economy.
India growth slows to 5% in fresh blow to Modi
The Congress shared Singh's statement on its official Twitter handle indicating that it was the party's position as well.
The Congress leader said more than 350,000 jobs had been lost in the automobile sector alone and he claimed similar large-scale job losses in the informal sector.
"Domestic demand is depressed and consumption growth is at an 18-month low. 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.
Highlighting the rural distress, 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 per cent of India's population."
Citing RBI's transfer of Rs1.76 trillion to the government, the former PM also accused the latter of attacking the autonomy of institutions.
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