PrashantNews
Ahead of the Union Budget, Congress leader and former Finance Minister P Chidambaram on Thursday claimed that the Indian economy is in slowdown mode and that the growth rate may fall by 2 percent as compared with the previous year.
“The economy is in a slowdown… that cannot be denied at all, however, much the government may try to do that the economy is in a slowdown and it may fall up to two per cent of the previous year’s growth,” he said at a press conference in New Delhi citing a report the ‘Real State of the Economy 2025’ prepared by former party MP Rajeev Gowda and his team.
“There are no jobs. Youth unemployment is close to 40 per cent. There are no jobs despite the PM handing out letters to people from time to time. That is just filling of vacant posts and does not involve creation of new jobs,” he said.
Chidambaram said wages have stagnated for the last four-five years.
“Inflation is raging, with food, education and healthcare inflation is in double digits. Inflation has been raging since 2-3 years,” the Congress leader said.
Noting that there is huge income inequality, Chidambaram said he does concede that the top 20-30 per cent may be better off but the rest of the 70 percent, the bottom half, is living on Rs 100-150 a day.
“There is huge inequality and that gap between the rich and the poor is growing. The government has done nothing to deal with it,” he said.
Chidambaram said the government has failed to address all the points mentioned in the report released by the party.
The Moody in its latest report has also claimed the Indian economy is facing a slowdown in 2025 primarily driven by persistent inflationary pressures and a moderation in domestic demand as the economy is getting caught in the web of growth, inflation and currency stability concerns.