GDP slump: Chidambaram slams Centre for ‘ridiculing’ Manmohan’s suggestions

by Friday, June 2nd, 2017

New Delhi, June 2: Former Finance Minister P Chidambaram has criticised the Centre for ridiculing the suggestions of former prime minister Dr Manmohan Singh after the fourth quarter GDP growth declined to 6.1%.


“The Central Statistical Organisation has released the GDP GVA figures for 2016-17. Finally, the bluff of the Government is called. The economy was slowing down in the middle of 2016 and we had cautioned the Government that unless it takes corrective steps, the economy will slide further. Instead of taking corrective steps, the Government decided to demonetise high-value currency. Suddenly, without any warning, Rs. 500 and Rs. 1,000 were declared legal tender and something like Rs. 14.5-15 lakh crore was pulled out of money supply,” Chidambaram told news agency ANI.

Chidambaram slammed the Government for ignoring his and former prime minister Manmohan Singh’s suggestions on the same, and instead ridiculing them.

“Immediately, we (Manmohan Singh, I) had cautioned that this was a wrong move and it will gravely affect the Indian economy. I had said that the hit to economy will be between 1-1.5 percent. We were laughed at, the Government ridiculed us. Now, what’s the truth. The CSO has said that the economy has taken a hit of 1.3 percent. Right in the middle of the range I had given. That’s going to cost the country Rs. 1.5 lakh crore,” Chidambaram said.

Former Prime Minister Manmohan Singh had dubbed the decision to demonetise high currency notes as “legalised plunder and a monumental failure” and predicted a 2 per cent fall in GDP.

India lost the tag of the fastest growing economy to China in the March quarter with a GDP growth of 6.1 per cent, which pulled down the 2016-17 expansion to 7.1 per cent.

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