New Delhi: As the National Statistical Office (NSO) has revealed a whopping decline of 23.9 percent in GDP growth of first quarter of the year 2020-21, Congress leader and former finance minister P Chidambaram blamed the Modi Government for peddling a "fake narrative" and not taking preventive measures to save the Indian economy. He even called the Government as "nonchalant" and "uncaring".
"All these had been anticipated, we had warned the Government and we had urged the Government to take preventive and pre-emptive measures. Our pleas fell on deaf ears. The country, as a whole, is paying a heavy price, the poor and the vulnerable are in despair," said Chidambaram while addressing a virtual press conference, on Monday.
He further added, "It is only the Modi Government that was nonchalant and uncaring. The Government peddled a fake narrative, but that narrative has been exploded today by the CSO estimates."
As GDP has seen the worst contraction on record, the Congress leader explained that it means about one-quarter of the gross domestic output as on June 30, 2019, has been wiped out in the last 12 months.
The only sector which has seen growth is Agriculture, Forestry and Fishing at 3.4 percent. Taking a jibe at the Union Minister Nirmala Sitharaman, he said, "The Finance Minister who blamed an 'Act of God' for the economic decline should be grateful to the farmers and the Gods who blessed the farmers."
However, all the other sectors have witnessed a sharp decline as the Manufacturing sector is 39.3 percent down, Construction is 50.3 percent down, while trade, hotels, transport and communications are down by 47 percent.
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"The estimates do not come as a surprise to us. They should be a matter of surprise to the Government that was seeing 'green shoots' on several days during the first quarter," Chidambaram alleged.
He made a sharp attack on the Government, saying, "They should also be a matter of shame to the Government that did nothing to cushion the fall by taking suitable fiscal and welfare measures, but we know Modi Government has no shame and will not acknowledge it's mistake."
Pointing out that the RBI had warned over contraction in the first half of 2020 would be "deeper and more destructive than the Great Depression and Global Financial Crisis (of 2008)", Chidambaram stated, "The economic tragedy was foretold by many close observers of Indian economy, most recently by the RBI in its Annual Report released a few days ago."
Concerning over the state of economy, Chidambaram added, "Let me say with regret, it will take many months before the economy turns the corner and registers positive growth. The inaction and ineptitude of the Government gives us no hope that we will see light at the end of the tunnel at any time soon."
