'Worrisome And Unacceptable': Manmohan Singh Tears Into Centre's Economic Policies For GDP Downfall

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".

Dr. Manmohan Singh said that aspiration of our country is to grow at 8-9 per cent per annum. (File Photo/ Getty)

New Delhi: Soon after a government data revealed further slip in country's gross domestic product (GDP) growth for July-September quarter of the ongoing fiscal, former Prime Minister Manmohan Singh 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. "GDP figures released today are as low as 4.5 per cent. This is clearly unexpectable. Aspiration of our country is to grow at 8-9 per cent per annum," he said adding that the sharp decline in growth rate from five per cent in Q1 to 4.5 per cent in Q2 is worrisome. The former Prime Minister also stressed that there is a need to change the current climate in our society. "We need to change the current climate in our society from one of fear to one of confidence for our economy to start growing at 8 per cent per annum. The state of the economy is a reflection of the state of its society. Our social fabric of trust and confidence is now torn and ruptured," he said.

There is no one today that can deny the sharp slowdown in India’s economy & its disastrous consequences particularly for our farmers, youth & poor. The GDP figures released today point that the growth rate of our economy in Q2FY20 is as at 4.5%: Former PM Dr Singh #GDPkeBureDin pic.twitter.com/9sIKxfJ9gx

— Congress (@INCIndia) November 29, 2019

India's economic growth slowed to 4.5 per cent in the July to September quarter from 7.1 per cent in the corresponding period of last year, the government data showed on Friday. The economy had a weak performance last quarter with the GDP growth rate dropping to 5 per cent. The slowdown in Q2 FY20 was largely due to a sharp dip in the manufacturing sector and agriculture output said the Ministry of Statistics and Programme Implementation in a statement.  However, Chief Economic Advisor (CEA) KV Subramanian has expressed hope that the country's gross domestic product (GDP) is likely to pick up in the third quarter of the current financial. "We are saying again that the fundamentals of the Indian economy continue to be strong. GDP is expected to pick in the quarter three," he said. Department of Economic Affairs (DEA) Secretary Atanu Chakraborty said that equity capital flows have been positive this year. Meanwhile, the eight-core industries recorded 5.8 per cent decline in October from the 5.2 per cent decline seen in September, said the government data. "The combined index of eight core industries stood at 127 in October 2019 which declined by 5.8 per cent as compared to the index of October 2018. Its cumulative growth during April to October 2019-20 was 0.2 per cent," according to an official statement by the Ministry of Commerce and Industry.

India is now a $3 trillion global economic powerhouse driven largely by private enterprise. It is not a tiny command and control economy that can be bullied & directed at will. Nor can it be managed through colourful headlines and noisy media commentary: Former PM Dr Singh pic.twitter.com/nw3bhUPyGP

— Congress (@INCIndia) November 29, 2019

The index of eight core industries comprises coal, crude oil, natural gas, steel, cement, electricity, fertiliser, and refinery products. The index makes up 40.27 per cent of the Index of Industrial Production (IIP). Coal production declined by 17.6 per cent in October versus the de-growth of 20.5 per cent. The index was also dragged down by electricity which reported a plunge of 12.4 per cent compared to a plunge of 3.7 per cent in September. Crude oil production declined by 5.1 per cent in October 2019 over the same month of last year. Cement production declined by 7.7 per cent but fertiliser production increased by 11.8 per cent. Petroleum refinery production too increased marginally by 0.4 per cent. (With inputs from agencies)