Attacking the government on the state of the economy, Congress said on Friday that the population had been hit by the “double whammy” of low growth and high inflation including the “blatant mismanagement” of the Modi government is responsible.
The attack came after the Indian economy, which had contracted for two consecutive quarters, recorded positive growth of 0.4% in the October-December quarter, mainly due to the good performance of the sectors. agriculture, services and construction, according to official data. Friday.
Chief Congressional Spokesman Randeep Surjewala said third quarter GDP data proves once again that the cracks in India’s economy are more visible than ever.
The economy grew only 0.4% in the third quarter of fiscal year 2020-2021, which is well below estimates, he said.
“What continues to be of concern, however, are the anticipated estimates for the full year. The Central Bureau of Statistics (CSO) has lowered the GDP growth rate for fiscal year 2020- 2021 from its previous estimate of minus 7.7% to now minus 8%, ”Mr. Surjewala said.
It’s also important to point out that first-quarter GDP has now been revised down to minus 24.4% from the previously reported contraction of minus 23.9%, he said in a statement.
“Clearly, the poorly planned and poorly executed lockdown has had a huge impact on the economy, which was already suffering from the two body shots of demonetization and the poorly designed GST,” the congressional spokesperson said.
“A detailed analysis of the GDP figures also proves the misplaced and irrational exuberance of the Indian stock markets,” he said.
Pointing out that private consumption spending of Rs 21.2 lakh crore is down 2.4% on an annual basis, Surjewala asserted that it is clear that while demand for goods picks up, demand for services, which is the largest contributor to GDP, is lagging behind and is unlikely to return for a few quarters in the future.
“Contrary to claims, the Modi government has spent much less than is necessary to revive the Indian economy. Public administration in the third quarter contracted by minus 1.5 percent,” he said. .
“The Q3 GDP growth figures are a big lesson for Modi’s insensitive government. Agriculture, which grew 3.9 percent in Q3, continued to hold up and that is why the government should stop treating farmers with so much cruelty and insensitivity, “Congressman said
“He must listen to the plight of millions of farmers campaigning for justice and resolve their plight by overturning the three” black anti-agriculture laws “, Mr. Surjewala said.
“We have been really struck by the double whammy of low growth and high inflation for which the blatant mismanagement and unforgivable failure of the Modi government leadership are solely responsible. Hopefully a prime minister and a Ignorant FMs are finally realizing the truth, ”he added. .