Inflation, falling IP, declining rupee in NDA rule: Chidambaram

After India's retail inflation rose in March as the Consumer Price Index (CPI) increased and the Indian rupee continued to depreciate for the sixth consecutive day, the Congress party has attacked the Modi-led NDA government over the issues plaguing the country's economy. Former Finance Minister, P. Chidambaram, alleged that since demonetisation every step of the government has been wrong.

New Delhi: A month ahead of the BJP-led NDA government completing seven years, Congress has attacked the government over economic issues, which it says are looming in the country.

Former Finance Minister, P. Chidambaram criticising the government said in a statement, "What a way to end the 7th year of the Modi-led NDA government: surging inflation, falling industrial output, declining rupee and plunging stock market".

"Add crushing taxes, growing unemployment and more people pushed into poverty and debt. This is the result of five years of colossal mismanagement starting with demonetisation in November 2016," he added.

The Former Finance Minister alleged that since demonetisation every step of the government has been wrong and it will not accept that its policies and decisions have been hopelessly wrong. He said, "Mr Modi's fault is that he will not tolerate criticism or heed well-meaning advice of distinguished economists."

Chidambaram's criticism comes after India's retail inflation rose in March as the Consumer Price Index (CPI) increased to 5.52 per cent from 5.03 per cent in February and the Indian rupee continued to depreciate for the sixth consecutive day, breaching the 75 per US dollar mark amid rising cases of Covid-19 and concerns of fresh localised lockdowns.

The country also saw a sharp fall in manufacturing and mining activities which led to a slump in India's industrial output in February.

Data released by the Ministry of Statistics and Programme Implementation on Monday showed that the Index of Industrial Production (IIP) for February contracted by 3.6 per cent over the same month a year ago.

On a sequential basis, the IIP had contracted by 0.87 per cent. For the April-June period of the previous financial year, the IIP fell by 11.3 per cent.

"For the month of February 2021, the 'Quick Estimates of Index of Industrial Production' (IIP) with base 2011-12 stands at 129.4," the ministry said.

IANS