Slowdown happening as Modi 'does not know economics': Rahul

Congress leader Rahul Gandhi on Friday took a jibe at Prime Minister Narendra Modi on the issue of the economy, saying that the PM does not understand economics due to which the country is suffering.

Mahendragarh (Haryana):Congress leader Rahul Gandhi on Friday targeted the BJP-led government over economic slowdown alleging that Prime Minister Narendra Modi "knows nothing about economy" and measures like GST, demonetization etc have ruined the economy with poor at the receiving end.

Addressing a rally here, he said the Congress-led UPA government had boosted growth and made India fastest growing economy in the world and recalled the then US President Barack Obama saying that America's competition was with India and with China.

"But today, the world makes fun of us. They mock at us...one caste is fighting another, one religion is up against another and the economy which was the pride of India is ruined," Gandhi alleged

The Congress leader said that the only way to revive the growth was to increase the purchasing power of the poor.

"There is only one way out and that is to give money to the poor. We have started MNREGA and Narendra Modi said in Lok Sabha that it is not a good scheme. Modi knows nothing about economics," Gandhi said.

"A group of eminent economists from America visited me and said that a reason for the growth in economy during 2004-14 was MNREGA and farm loan waiver by the UPA government. When UPA introduced MNREGA, Rs 33 thousand crores was directly transferred to bank accounts of poor while in farm loan waiver Rs 70 thousand crores were directly transferred to the bank account of farmers," said Rahul.

"When money reached their pockets they purchased toothpaste, brush, pant, shirt, vehicles. When demand increased manufacturing increased and more and more people were employed in factories, employment was generated," Gandhi said.

"Now the condition of the economy is not hidden from anyone. Unemployment is highest in the 40 years. Youth have no employment, small traders middle businessmen who are the backbone of the economy have been ruined due to Gabbar Singh Tax and demonetisation," he added.

The Congress leader accused the Prime Minister of benefiting "15-20 influential industrialists" and said corporate tax had been reduced and loans amounting Rs 5.50 lakh crores waived.

Seeking support of voters, Gandhi said that BJP failed on its promise of waiving farmers loan in Haryana while Congress has waived farmers loan in Karnataka, Madhya Pradesh, Punjab, Rajasthan and Chhattisgarh.

Voting in Haryana will take place on October 21. The rally was to be addressed by Congress President Sonia Gandhi but she did not come due to "unavoidable reasons".