Indian economy in bad shape, says Manmohan Singh

Aditi Tandon and Vibha Sharma

Tribune News Service

New Delhi, January 30

A day before the government presents the Economic Survey, former Prime Minister and Congress leader Manmohan Singh on Monday released a document on the current state of Indian economy.

 “Tomorrow is the day when the government will present its economic survey. We thought it a good idea that we should also bring out a document that sets out what we consider is the real state of the economy,” Singh, a former RBI governor who has been critical of Modi government’s decision to invalidate old banknotes of Rs 1000 and Rs 500, said at a press briefing while he released the ‘Real State of Economy’, a document the Congress has drawn up.

"So that the country as a whole has the ways and means of assessing where the economy is, where it is heading to and what can be done to bring on the right path.”

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"Indian economy is not in good shape is now obvious. The IMF has projected that the growth rate of India this current fiscal year will not be 7.6 per cent but 6.6 per cent. Several other agencies have made similar projections," Singh said. 

"I will not comment on those projections. It is for you assess what the truth is. This is a contribution to the ongoing debate on where are economy stands, where it is heading to and what is to be done to pull it in the right path," Singh said. 

‘Damp squib’

The BJP countered the allegations by saying that Modi’s government had “turned around” a fragile economy it had inherited when it came to power in 2014.

“Projects were stalled and distressed. Inflation was at 9.9 per cent. WPI average for three years was 7.4 per cent. CAD was at 3.6 deficit in an average of three years,” Union Minister Piyush Goyal, who was accompanied by Union Minister for Commerce Nirmala Sitharaman, said at a press briefing the party had called to counter the Congress’s charges.  

Goyal claimed the economy had seen a vast improvement since the current government assumed power from the previous government under Singh.  

“Any analysis of facts and figures shows that the Modi government has done a historic job in turning around the situation,” Goyal said.

“A new normal is being established in the country. India has emerged as an oasis in the desert of world economy,” Goyal said, adding that none of the allegations could be substantiated.

Sitharaman called the Congress's press briefing a “damp squib”. 

“Are they comparing their 10 year’s of performance with two-and-a-half years of BJP rule. It (The allegations) is not based on any hard facts but on assumptions. Its aim was just to deflect attention from Vijay Mallya case,” she said, adding that the case had got the party in deep trouble. “Economy, including rural and agriculture, is doing fine. All the assertions are made on statistics. They are pushed against the wall on Kingfisher issue and are just deflecting attention. Instead of self certification, they would do better not to obstruct Parliament and let it function.”

The BJP released letters earlier on Monday supposedly written by embattled liquor baron Mallya to Singh and his finance minister P Chidambaram to help get him loans without considering his already piled-up debts. (With inputs from IANS)