New Delhi, Jan 6: Former finance minister P. Chidambaram on Saturday said that fears of the Congress regarding economic slowdown have come true despite tall claims of robust growth made by the Centre. Chidambaram’s comments come in the wake of advanced forecast of declined growth rate at 6.5 per cent by the Central Statistical Organisation (CSO). He added the declined economic growth has not only resulted in the loss of jobs but the companies are also announcing less number of projects. [Also read: Rahul Coins New Acronym For GDP, Blames PM Modi And Jaitley For Economic Downturn]
In a statement, released by the Congress, Chidambaram said, “New project announcements have declined, fresh investment is low, informal sector is still reeling under the ill effects of demonetisation, job creation is abysmal, exports are plunging, manufacturing sector growth has slowed down, agriculture sector has been hit hard and rural despair is abundant.” [Also read: Congress Slams PM Modi, Arun Jaitley For Lower GDP Growth Rate]
Chidambaram added that the retail inflation soared to a 15-month high of 4.88 per cent in November and industrial output slowed to a three month low of 2.2 per cent in October.
He also emphasised that new project announcements by Indian companies touched a 13-year low of Rs 77,000 crore in the December quarter, the project tracking database of the Centre for Monitoring Indian Economy (CMIE) shows. The manufacturing sector has seen the sharpest fall in new project announcements.
Central Statistical Organisation, in its advance predictions, said the Indian economy will be growing at 6.5 percent in comparison with 7.1 per cent in the previous fiscal year. The projection by the organisation is in line with the expectations of many leading economists and organisations.