Former prime minister Manmohan Singh said on Friday the GDP growth rate of 4.5 per cent was unacceptable and worrisome, and urged his successor Narendra Modi to set aside "deep-rooted suspicion" of society and nurse India back to harmonious, mutually trustworthy society that can help the economy soar.
Delivering his valedictory address at a national conclave on economy, Singh said mutual trust is the bedrock of societal transactions fostering economic growth, but "our social fabric of trust, confidence is now torn and ruptured". He said the "toxic combination of deep distrust, pervasive fear and a sense of hopelessness in our society" is stifling economic activity and growth.
Manmohan Singh on GDP figures:
There is no one today that can deny the sharp slowdown in India’s economy and its disastrous consequences, particularly for our farmers, youth and the poor. The GDP figures released earlier today point the growth rate of our economy in the second quarter of current fiscal year, is as low as 4.5 per cent.
This is clearly unacceptable, and the aspirations of our people want that this country should grow at 8-9 per cent per annum and therefore the sharp decline in growth rate from 5 per cent in the first quarter to 4.5 per cent in the second quarter is indeed worrisome.
It is my belief that mere changes in economic policy will not help revive the economy. We need to change the current climate in our society from one of fear to one of confidence for our economy to start growing robustly again at 8% per annum.
Congress on GDP Numbers:
The Congress party also attacked the Modi government over dismal economic slowdown. While addressing to the reporters, Congress leader Randeep Singh Surjewala said for Bharatiya Janata Party (BJP) country's GDP means 'Godse Divisive Politics'. He further added that the ruling party has plunged the economy to another low. "This is the bankruptcy of economic vision. The latest GDP numbers show that the ruling BJP has plunged the economy to another low," Surjewala added.
India’s economic growth slipped further to hit an over six-year low of 4.5 per cent in July-September, according to official data released on Friday. The previous low was recorded at 4.3 per cent in the January-March period of 2012-13. The Gross Domestic Product (GDP) growth was registered at 7 per cent in the corresponding quarter of 2018-19.
During the six-month period (April-September 2019), the Indian economy grew 4.8 per cent as against 7.5 per cent in the same period a year ago. The Reserve Bank had lowered the GDP growth projection for 2019-20 to 6.1 per cent from earlier forecast of 6.9 per cent.
China’s economic growth was 6 per cent in July-September 2019, which was the weakest expansion in over 27 years.