The Congress on Wednesday said the blindfolded Narendra Modi government was refusing to see the economic crisis in the country even as international agencies cut growth estimates while unemployment and inflation continued to trouble the masses.
Pointing to the reduction in India’s growth estimate from 7.4 per cent to 6.8 per cent by the International Monetary Fund (IMF), its second revision, Congress spokesperson Supriya Shrinate said: “World Bank, the RBI, Moody’s, Fitch, Asian Development Bank, IMF… all have downgraded growth projections. The RBI said this was the third storm after Covid and the Ukraine war. But the government spokespersons are parroting that ours is the fastest growing economy.”
Shrinate added: “Slow growth means more unemployment, less investment. Add to that the burden of high prices and the impact of a falling rupee. Finance minister Nirmala Sitharaman says there is absolutely no reason to worry. While the blindfolded is unable to see the crisis, the Prime Minister is busy in election campaigns and offering puja at temples. It is criminal to allow economic ruin at this pace.”
Modi is now spending much of his time in Gujarat where Assembly elections are coming up. In the last fortnight, Modi spent five days in Gujarat.
Shrinate said the Modi government was hiding behind external shocks instead of making meaningful interventions and recalled how the Manmohan Singh government effectively handled one of the worst recessions in 2008.
“If you can’t manage global factors, quit and let us handle the crisis. But the real problem is that the Prime Minister and the finance minister were not willing to accept the existence of a crisis,” she said.
Arguing that the hype about the fastest growing economy was misleading, Shrinate said: “America with a $21-trillion economy and China with a $18-trillion economy growing at a slower place means much higher gain than India with $3 trillion growing at 6 per cent. The third and fourth quarters are going to witness a much slower growth. The current account deficit is growing. Even the chief economic adviser has conceded there were serious challenges.”
Shrinate also pointed to Sitharaman’s statement on India’s decision not to increase fertiliser prices to ensure farmers aren’t burdened. “Whether the finance minister is deliberately lying or is ignorant is difficult to guess. The DaP cost has been increased this year from Rs 1,200 to Rs 1,300. The urea bag of 50kg has been reduced to 45kg at the same price. The finance minister has definitely learnt lying from the Prime Minister.”
