Manmohan Singh: Unemployment rate high in India due to ‘reckless government demonetization decision’

Attacking the Center, former prime minister Dr Manmohan Singh said on Tuesday unemployment was high in the country and its informal sector was in shambles following the “reckless demonetization decision” taken by the government-led government. BJP in 2016.

He also criticized the central government for failing to hold regular consultations with states.

Opening a development summit virtually hosted by the Rajiv Gandhi Institute of Development Studies, an economic think tank aligned with congressional ideology in Kerala linked to the polls, Singh said the temporary measures taken by the Indian government and the Reserve bank to address the credit problem can not blind us to the looming credit crisis that could affect the small and medium business sector.

“Unemployment is high and the informal sector is in ruins, a crisis precipitated by the thoughtless demonetization decision taken in 2016,” he told “Pratheeksha 2030”.

The summit was organized to launch a vision document, a framework of ideas for the development of Kerala well in advance of the national elections.

He said that in Kerala and many other states, public finances are in turmoil as states have to resort to excessive borrowing, which creates an intolerable burden on future budgets.

“Federalism and the regular consultation of states, which was the cornerstone of India’s economic and political philosophy, as enshrined in the Constitution, no longer find favor with the current central government,” he said. declared.

Singh said that while Kerala’s social standards are high, there are other areas that need strong attention in the future.

“There are many obstacles to overcome that the state must overcome. The global slowdown of the past two or three years, compounded by the pandemic, has made Kerala’s global interface more fragile.

“While the increased use of digital ways of working can keep the IT sector afloat, tourism has been hit hard and the speed at which the pandemic is galloping in Kerala poses challenges for this industry,” Singh said.

Noting that the focus on health and education has enabled Kerala to take advantage of employment opportunities elsewhere in the country and in all parts of the world, Singh said this has led to an increasing flow of remittances from abroad which has created a booming real estate sector and strong growth in the service sector, driven by tourism and information technology.

“Amid all the gloom, I see the UDF’s steadfast adherence to planned growth with a clear sense of direction and concern for the common man, a beacon of hope, not just for Kerala , but for the whole country, ”he said.

“When I presented the national budget in 1991 as Minister of Finance, I quoted Victor Hugo, who said: ‘Nothing is more powerful than an idea whose time has come. “

I have a feeling that the unanimity and clarity displayed by the UDF on the way forward will lead to the arrival of the moment for the idea of ​​Kerala this year, ”he said.