New Delhi: Former Finance Minister P Chidambaram slammed Prime Minister Narendra Modi-led government after the Indian economy contracted by 23.9 per cent in the April to June quarter (Q1 FY21), marking the first contraction in more than 40 years.
Addressing a virtual press conference, he said that Modi government will not acknowledge its mistake.
Govt did not take suitable measure: Chidambaram
The leader claimed that Congress and other non-NDA parties had warned about it earlier, however, government ignored their pleas.
He alleged that government has not taken suitable fiscal and welfare measures. He also quoted the RBI report.
Earlier, the National Statistical Office (NSO) said gross value added (GVA) came in at minus 22.8 per cent.
GDP
“The GDP at constant (2011-12) prices in Q1 of 2020-21 is estimated at Rs 26.9 lakh crore as against Rs 35.35 lakh crore in Q1 of 2019-20, showing a contraction of 23.9 per cent as compared to 5.2 per cent growth in Q1 2019-20,” said the Ministry of Statistics and Programme Implementation in a statement.
“The quarterly gross value added at basic price at constant (2011-12) prices for Q1 of 2020-21 is estimated at Rs 25.53 lakh crore as against Rs 33.08 lakh crore in Q1 of 2019-20, showing a contraction of 22.8 per cent.”
The statement said trade, hotels, transport and communication saw a dip of 47 per cent while manufacturing shrank by 39.3 per cent. The construction sector took a hit of 50.3 per cent as mining output struggled at 23.3 per cent, and electricity and gas dipped by 7 per cent.
However, agriculture was the lone bright spot which grew at 3.4 per cent.
Mitigation
The government and Reserve Bank of India have been prompt to take measures for mitigating the impact of pandemic on economy by rolling out stimulus packages, reforms and interest rate cuts.
However, the revival is expected to take time as there is still high uncertainty regarding COVID-19 cases across the country.
The economy was already slowing before the pandemic struck, growing only 4.2 per cent in the last fiscal year, its slowest pace in 11 years.