Congress slams Modi government on GDP contraction


New Delhi, Aug 31 (IANS): The Congress on Monday attacked the Central Government soon after the country's Gross Domestic Product (GDP) plunged to (-) 23.9 per cent during the first quarter of Financial year 2020-21 saying the "fake narrative" has been exploded.

Addressing a virtual press conference, former Finance Minister P. Chidambaram said, "The CSO has released the provisional estimates of GDP for the quarter April-June 2020. And the GDP in the first quarter has declined by a whopping 23.9 per cent."

"It means, about one quarter of the gross domestic output as on June 30 has been wiped out in the last 12 months. Another way of looking at it is, since the end of 2019-20, the gross domestic output has fallen by about 20 per cent," he said.

Taking a swipe at the government, Chidambaram 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. As the only sectors that have grown at 3.4 per cent are Agriculture, Forestry and Fishery."

His remarks came after the CSO said that the country's GDP plunged to (-) 23.9 per cent during the first quarter (Q1) ended June 2020-21.

Chidambaram further said that every other sector of the economy has declined sharply, some precipitously. Lamenting at the government, he said that 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. They should also be a matter of shame to the government that did nothing -- literally nothing -- to cushion the fall by taking suitable fiscal and welfare measures, but we know that the Modi government has no shame and will not acknowledge its mistakes," the Congress leader said.

He also pointed out that the economic tragedy was foretold by many close observers of the Indian economy, most recently by the Reserve Bank of India (RBI) in its Annual Report released a few days ago.

Chidambaram said, "All these had been anticipated, we had warned the government and we had urged the government to take preventive and pre-emptive measures." The Congress leader said that our pleas fell on deaf ears.

"The country, as a whole, is paying a heavy price, the poor and the vulnerable are in despair. 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," he said.

He further noted that 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," Chidambaram added.

  

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Comment on this article

  • myna, mysuru

    Tue, Sep 01 2020

    Not sure if the GOI will blame our first PM Pandit Nehru for the fall in GDP.

    DisAgree Agree [3] Reply Report Abuse

  • anthony, Mangalore

    Tue, Sep 01 2020

    Modi Hai Tho Mumkin Hai. This Govt has been a Total Disaster for the country.

    DisAgree [1] Agree [3] Reply Report Abuse

  • Shah, Mangalore

    Tue, Sep 01 2020

    Finally Somebody speaking "Kaam Ki Baat" against "Mann Ki Baat"

    DisAgree [1] Agree [3] Reply Report Abuse

  • Shankar, Mangaluru

    Tue, Sep 01 2020

    It is an act of God. It would have happened even if Nehru or Indira was the PM!!!

    DisAgree [4] Agree [2] Reply Report Abuse

  • Bhavya Baliga, Udupi

    Tue, Sep 01 2020

    What's new, Chidu? Even a street kid knows it!!!

    DisAgree [10] Agree [4] Reply Report Abuse

  • j.anata, Mangaluru / Bengaluru

    Tue, Sep 01 2020

    Commentators forget that COVID times are here and entire World Economy is suffering. They are spewing venom with glee on Modi is this moment.
    This is not a mocking moment, we are all in this together, please stand with your country

    DisAgree [19] Agree [7] Reply Report Abuse

  • Shameer, Abu Dhabi

    Tue, Sep 01 2020

    Indian economy was on a downward spiral even before the pandemic hit us. Please go and check the GDP statistics of last 6 years. We are the worst in G20 nations in GDP. It is not about mocking, but the reality is now evident. BJP government kept hiding the facts and kept saying 'sabb changa si'.
    They denied unemployment rate was worst in 40 years before 2019 elections. They denied demonetisation killed the unorganised sector. They denied GST was faulty. Moreover brought contentious bills in Parliament. Merged banks and created more pain. Worse is yet to come when moratorium ends. We may see NPAs double. States are running short in thousands of crores. COVID Second wave has just begun.

    Running a country's government is not a child's play. Kasai aur Hajam mein farq hota hai.

    DisAgree [4] Agree [15] Reply Report Abuse

  • Deshbhakt, Mangalore

    Tue, Sep 01 2020

    Anata, Covid-19 started in Nov to the world but to India it came in March. Is our growth shown for overnight or for the gradual gain over the months ? What did BJP do with the assets it had on hand before that ? Lost in the gamble ?? To who ?? NiMo ? Choksey ? Mallya ?? What kind of ministers does the PM have in his cabinet who don't know to channel funds so that they help growth instead of sitting and cursing God for a calamity ?

    DisAgree [3] Agree [13] Reply Report Abuse

  • Bhavya Baliga, Udupi

    Tue, Sep 01 2020

    Those who have been hit very hard for anti-national activities / corrupt practices / illegal activities / immoral trading, etc., continue to cry foul and curse Modi for anything and everything.

    DisAgree [12] Agree [1] Reply Report Abuse

  • Jude, Mangalore

    Tue, Sep 01 2020

    There is no need to be apologetic, when the PM can impose a lockdown without proper consultation of other stakeholders, and not taking the public into long-term confidence. Don't you realize that most of us are living on our savings, and that there is no impetus to generate demand. The initial numbers are only account for the formal sector which only constitutes about 10% of the economy. Expect the numbers to be much worse if you could account for the informal sector too. Yes, the PM attempted to do a one man show, asking you to light candles and beat your utensils, and but when they realized that the reality was slipping out of their hands, they started blaming the states for mismanagement. Further, most of TRP driven national television news made a fool out of many, they have spawn many conspiracy theories about the SSR case for two months, without doing any homework on the state of the economy, job losses and the coronavirus.

    DisAgree [2] Agree [8] Reply Report Abuse

  • Shameer, Riyadh

    Tue, Sep 01 2020

    Totally agree with you. These GDP numbers are of the formal sector and the figures will get worse when informal sector data is available.

    This is the most arrogant government I have ever witnessed. Outright denial of facts and reports is its first line of defence.

    This time they could not hide/fudge or bring their own standard of evaluation as GDP contraction is evident.

    DisAgree Agree [4] Reply Report Abuse

  • Sanjeev Kamath, Udupi

    Tue, Sep 01 2020

    It is known globally that the contraction was expected, given that it took place during a quarter when the country was in complete lockdown due to COVID-19.

    Our senior advocate turned dhoti-economist should know that overall, while the Q1 GDP decline is along expected lines, both the high frequency indicators of Q2 as well as all leading global economy analysis units are projecting India will recover the fastest and be among the select few that will get back to the high growth path.

    Before making such cliche statement, he old age sanity should also know the Economist Intelligence Unit (EIU) forecasts that India will be among the countries to recover fastest from the distress induced by Covid-19. According to the EIU, in Q3, India’s output will be similar to that registered one year ago and the country will recover to 2019 GDP levels in 2021.

    DisAgree [17] Agree [3] Reply Report Abuse

  • Mangalurian, Mangaluru

    Tue, Sep 01 2020

    We are racing towards MINUS US$5 trillion economy!

    How will it feel like with no money in the pocket, no job, health costs going through the roof?

    Never mind. So long as Gujjus are running the show, everything is "Mumkin hai".

    Is this the India that Congress built through so much dedication and hard work?

    It takes 70 years for a giant banyan tree to grow from a seed. It takes just a short time for others to demolish the tree. And then call it 'Act of God'.

    DisAgree [5] Agree [14] Reply Report Abuse

  • SAM, Dubai

    Tue, Sep 01 2020

    Indians after 2nd quarter GDP Data : "Arey Hum toh Fakir aadmi hain, jhoka leke chal padenge ji"

    DisAgree [4] Agree [9] Reply Report Abuse

  • Zee, Abu Dhabi

    Tue, Sep 01 2020

    In next few months GDP will become -58% like 58 inch ka seena.
    China takes the lead with 3.1% GDP for 2nd quarter 2020.

    Where is Vikas?
    Vikas has done somersault.

    BJP after failed lockdown is like : Genji la ijji, Genjig padna kai la ijji.

    DisAgree [4] Agree [10] Reply Report Abuse

  • Veer, Nagpur

    Mon, Aug 31 2020

    We are moving towards Atma Niradhar.

    DisAgree [3] Agree [10] Reply Report Abuse

  • Shameer, Riyadh

    Mon, Aug 31 2020

    Worst GDP in 40 years. BJP has decimated the economy of India in 6 years what took Congress to build in 60 years. Where are the Andh Bhakts? Where is RSS and all the Dal and Sena's. Couldn't you all save the economy with all the strength you show?

    This is what happens when you elect a anpad government.

    Abb Bajao taali.

    DisAgree [5] Agree [10] Reply Report Abuse

  • Vishal, Mangalore

    Mon, Aug 31 2020

    One can't expect anything from this government. Let's admit this. However much they try, this government just doesn't have efficient and knowledgeable people who can pull out the nation from the depths of despair it has been pushed into on account of the mismanagement of the economy. Modi, for reasons that are conspicuous, doesn't want people iike Yashwant Sinha and Arun Shourie in his cabinet. Instead he wants people like Nirmala, Jawdekar, Ravi Shanker Prasad - people who know only to wag their tails in front of Modi. The result is there for all to see. On account of the blunder the voters have committed by electing this government, the country is suffering now. The people are suffering. Just take a Rs. 500 note and go to the market and see the speed with which it vanishes. It is no exaggeration. The fact is that this government has no clue on how to run the economy. It is a matter of great shame, indeed horrendous, how such a big country like ours is run as per the whims and fancies of one man, who has proved to be disastrous for the country.

    DisAgree [4] Agree [9] Reply Report Abuse

  • Dylan, Mangalore

    Mon, Aug 31 2020

    Modi and the Government in total doldrums.

    DisAgree [4] Agree [10] Reply Report Abuse

  • Alwin, Mangalore

    Mon, Aug 31 2020

    Modi government will abolish GDP of congress government

    DisAgree [4] Agree [19] Reply Report Abuse


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