Former Prime Minister Manmohan Singh Says State Of Economy Deeply Worrying

In a statement, Singh said the last quarter GDP growth rate of 5 per cent signals that "we are in midst of a prolonged slowdown". The Congress leader said India has the potential to grow at a much faster rate.

The Congress leader said India has the potential to grow at a much faster rate. (Image: ANI)

New Delhi: Days after the Ministry of Finance revealed the gross domestic product (GDP) for the first quarter of Financial Year 2019, former Prime Minister Manmohan Singh on Sunday said the state of the economy was 'deeply worrying' and that "all-round mismanagement" by the Modi government has resulted in this slowdown. In a statement, Singh said the last quarter GDP growth rate of 5 per cent signals that "we are in midst of a prolonged slowdown".  The Congress leader said India has the potential to grow at a much faster rate. "India cannot afford to continue down this path. Therefore, I urge the government to put aside vendetta politics, and reach out to all sane voices and thinking minds, to steer our economy out of this man-made crisis," he said. Singh said it is particularly distressing that the manufacturing sector's growth is tottering at 0.6 per cent.  "This makes it very clear that our economy has not yet recovered from the man-made blunders of demonetisation and a hastily implemented GST," he said. "Investor sentiments are in doldrums. These are not the foundations for economic recovery," he added. The former PM also expressed concern over the downgrading economic situation of the country. "The state of economy today is deeply worrying. Last quarter's GDP growth rate of 5% signals that were in midst of a prolonged slowdown. India has potential to grow at a much faster rate but all round mismanagement by Modi govt has resulted in this slowdown," he said. "It is particularly distressing that the manufacturing sector's growth is tottering at 0.6%. This makes it very clear that our economy has not yet recovered from the man-made blunders of demonetisation and a hastily implemented GST," he added. Singh also said that India cannot afford to continue down this path. "Therefore, I urge the govt to put aside vendetta politics and reach out to all sane voices and thinking minds to steer our economy out of this man-made crisis," he said. harp deceleration in manufacturing output and subdued farm sector activity pulled down India's gross domestic product (GDP) growth to over six-year low of 5 per cent in the April-June quarter of 2019-20, said an official data last week. The gross value added (GVA) growth in the manufacturing sector tumbled to 0.6 per cent in the first quarter of this fiscal from 12.1 per cent expansion a year ago.

Similarly, farm sector GVA growth remained subdued at 2 per cent as compared to 5.1 per cent in the corresponding period of the previous fiscal. Construction sector GVA growth too slowed to 5.7 per cent from 9.6 per cent earlier. However, mining sector growth climbed to 2.7 per cent from 0.4 per cent a year ago.

The previous low in GDP growth was recorded at 4.3 per cent in January-March quarter of 2012-13. India's economic growth stood at 8 per cent in the same quarter of 2018-19.