P Chidambaram ridicules BJP government for distorted GDP growth data

P Chidambaram in a series of tweets ridiculed the BJP over the GDP growth data, saying it did not warrant any jubilation by the ruling party. The former finance minister said that as expected, the GDP growth in the July-September quarter (Q2) of 2018-19 was a good 1 % lower than in the April-June quarter (Q1).

"Q1 number was on a very low base in the previous year. It did not signify a bump in growth and did not warrant the jubilation of the BJP three months ago," he said.

Chidambaram said going forward, it was likely that the October-December (Q3) and January-March (Q4) quarter Rupee would register similar growth rates unless there were unexpected shocks.

"The new normal for the Indian economy is 7% and 2018-19 will be a normal year," he said.

India's economy grew at 7.1 % in the July-September quarter, lowest in three quarter Rupee, but remained ahead of China to retain the tag of the world's fastest-growing major economy.

The Gross Domestic Product (GDP) at constant prices (2011-12) had grown at 6.3% in the July-September quarter of the last fiscal, according to government data released on Friday, November 30.

The size of the GDP in the second quarter of 2018-19 is estimated at ₹33.98 lakh crore, as against ₹31.72 lakh crore a year ago, showing a growth rate of 7.1%, according to a statement of the Central Statistics Office (CSO).

The Indian economy grew at 8.2 % in the April-June quarter of this fiscal.

The GDP growth was 7.7% in the January-March quarter.

On the same day while participating in an interactive programme “Is India Being Redefined” he also questioned why former Chief Economic Adviser Arvind Subramanian kept a studied silence on demonetisation. He called it an “utterly foolish decision”.

“Even after this redefinition, the pattern of growth and decline remained just the same only difference is that entire curve has moved down a jot. The pattern is the best years of India's growth were 2004 to 2014. They cannot erase the fact. If the GDP growth in last 4 years is better than UPA years, then why is investment down by almost 5-6% points,” asked Chidambaram.

He further asked “Why our exports not crossing $315-billion mark registered in March 2014? Why is credit growth sluggish and credit growth to industry barely 1.4% Why no jobs, why so much farm distress and maximum number of farmers suicides in the last 4 years," he said about the back-series estimates for India's GDP released on Wednesday, November 28.

The new estimates put the average growth during the UPA regime below from previous estimates while growth during the NDA period is was secured as higher than during UPA.

“If every other indicator points towards south how is your GDP alone pointing north? When every indicator is pointing down, how can the GDP go up. This puzzle has to be solved by somebody, may be the NITI Aayog can,” Chidambaram argued.