New Delhi: Congress President Rahul Gandhi on Saturday blamed Prime Minister Narendra Modi’s “divisive politics” and Finance Minister Arun Jaitley’s “genius” for the bleak GDP forecast.
Tweeting a day after estimates predicted a four-year-low growth of 6.5%, Gandhi took a jibe at Modi and Jaitley, saying they had given India a 63-year low in bank credit growth and an eight-year low in job creation.
FM Jaitley’s genius combines with Mr Modi’s Gross Divisive Politics (GDP) to give India:New Investments: 13 year ⬇Bank credit Growth: 63 year ⬇Job creation: 8 year ⬇Agriculture GVA growth: 1.7%⬇Fiscal Deficit: 8 year????Stalled Projects ????https://t.co/bZdPnREYiE— Office of RG (@OfficeOfRG) January 6, 2018
Gandhi claimed the fiscal deficit had increased and projects had been stalled.
Senior Congress leader P Chidambaram also hit out at the government, saying the worst fears of an imminent economic slowdown have come true.
“The Modi government’s tall claims of India growing at a robust growth rate have evaporated in thin air. No amount of sugar coating, false bravado and rhetoric along with headlines management can conceal the stark reality. Our fears and warnings have proved true," Chidambaram said in a statement.
He said the recent social discontent could be a "direct manifestation of this economic slowdown, which the government was conveniently hiding".
The advance estimate of national accounts was released by Chief Statistician TCA Anant on Friday, projecting economic growth at 6.5 per cent, the lowest since Narendra Modi took office.
The Gross Domestic Product (GDP) was 7.1 percent in 2016-17 and 8 percent in the preceding year. It was 7.5 percent in 2014-15.
"Is there an impact of the GST (Goods and Service Tax) on average growth? The answer is, to some extent, of course and I can explain why," Chief Statistician TCA Anant told reporters.
Elaborating further, he said, "When we did the first quarter estimates, we had explained this that because of fact that the GST is going to be implemented from July 1, there will be natural anticipation of GST...by the manufacturing sector. Since the first quarter is part of whole year, the manufacturing includes the first quarter as part of it. Yes that impact is built into the exercise."
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