Below 6% growth is a catastrophe: Chidambaram on GDP
Recalling former prime minister Manmohan Singh's remark terming the demonetisation as a "monumental mismanagement", former finance minister P Chidambaram on Thursday slammed the BJP-led government over the GDP growth rate for the first quarter of current fiscal.
The government data on Thursday stated that India's Gross Domestic Product grew by 5.7 per cent during the first quarter (April-June) of the financial year 2017-18. The GDP growth rate for the same quarter last year was 7.9 per cent.
Chidambaram took to twitter and said, "The slide in economy continues. Slow growth, low investment and no jobs. An explosive cocktail".
"1% decline in GDP is a loss of Rs 1.5 lakh crore. 2% decline is a loss of Rs 3 lakh crore," he added.
Our worst fears have come true. Sub-6% growth is a catastrophe.— P. Chidambaram (@PChidambaram_IN) August 31, 2017
GDP and GVA figures are more evidence of Dr Manmohan Singh's indictment of 'monumental mismanagement'.— P. Chidambaram (@PChidambaram_IN) August 31, 2017
Hours after the government announced first quarter GDP growth, Union Finance Minister Arun Jaitley said that slowing of the GDP was a "matter of concern".
Reports say that manufacturing was impacted by uncertainty surrounding GST.
In February, Jaitley had said that the drop in economic activity due to demonetisation was only transient and its effect would not spill over to the next financial year.
The IMF had earlier this year said demonetisation would have only short term impact on the economy and it would bounce back to its expected growth of more than eight per cent in the next few years.