Economy is in crisis, Modi govt will never achieve double digit growth: P Chidambaram
New Delhi, Dec 1: With the GDP growth slowing to 7.1 per cent in the July-September period against 8.2 per cent in the previous quarter, former finance minister P Chidambaram has said that the BJP-led NDA government would never be able to achieve a double digit growth rate.
"This government promised a double-digit growth rate. They have not achieved double-digit growth rate in any of the four years. And they will not achieve it in the last year also," the senior Congress leader said.
"More large companies are bankrupt today than ever before,more projects stranded than ever before,more accounts turned NPA than ever before,more banks have been restrained from lending than ever before. There is a sense of crisis everywhere," he added.
On Friday, Chidambaram poked fun at the BJP over the GDP growth data, saying it did not warrant any jubilation by the ruling party.
In a series of tweets, the former finance minister said that the GDP growth in the July-September quarter (Q2) of 2018-19 was a good one per cent lower than in the April-June quarter (Q1).
"Q1 number was on a very low base in the previous year. It did not signify a bump in growth and did not warrant the jubilation of the BJP three months ago," he said.
India's economy grew at 7.1 per cent in the July-September quarter, lowest in three quarters, but still remained ahead of China to retain the tag of the world's fastest growing major economy.
The Gross Domestic Product (GDP) at constant prices (2011-12) had grown at 6.3 per cent in the July-September quarter of the last fiscal, according to government data released Friday.
The size of the GDP in the second quarter of 2018-19 is estimated at Rs. 33.98 lakh crore, as against Rs. 31.72 lakh crore a year ago, showing a growth rate of 7.1 per cent, according to a statement of the Central Statistics Office (CSO).
The Indian economy grew at 8.2 per cent in the April-June quarter of this fiscal.