New Delhi: Former Prime Minister and senior Congress leader Manmohan Singh on Friday said the current state of the Indian economy was “unacceptable” soon after the second quarter’s growth numbers revealed that the Gross Domestic Product (GDP) had hit the lowest point in six years.
Terming the decline from 5% to 4.5% as worrisome, Singh said, “The sharp decline of GDP from 5% in Q1 to 4.5% in Q2 is worrisome. Mere changes in economic policies will not help revive the economy.”
“The state of our economy is deeply worrying, but I will argue how the state of our society is even more worrisome. The state of an economy is a reflection of its society, and our social fabric of trust and confidence is now torn and ruptured,” Manmohan Singh said in an address delivered shortly after official figures showed India’s gross domestic product (GDP) slowing to 4.5 per cent in the July-September quarter.
Former PM Manmohan Singh: We need to change current climate in our society from one of fear to one of confidence for our economy to start growing at 8%/annum. State of economy is a reflection of state of its society. Our social fabric of trust & confidence is now torn & ruptured. pic.twitter.com/DtZDO7o7Mh
— ANI (@ANI) November 29, 2019
The former Prime Minister, who was speaking at a national conclave on economy in the national capital, said that the government can bring the nation back on the road to progress only by changing the climate of society “from one of fear to that of confidence”. “Only then can we start growing at 8 per cent per annum again. Merely changing economic policies will not help revive the economy,” he said.
India lost its position as the world’s fastest growing major economy last year. Global credit rating agency Moody’s has lowered its economic growth forecast for India to 5.6 per cent for the current financial year, dealing another blow to the government’s target of making India a $5-trillion economy by 2024.
The RBI has released the GDP figures today. Finance Minister Nirmala Sitharaman had met RBI Governor Shaktikanta Das before the data was released.