We should be growing at 8-9%: Former PM Dr Manmohan Singh on 4.5% Q2 GDP growth rate

Minutes after the Q2 GDP figures showed the Indian economy to be growing at 4.5%, former Finance Minister and Prime Minister Dr. Manmohan Singh highlighted that the Indian economy was growing at an extremely slow pace and that was hurting the country. Singh was speaking at the National Economy Conclave in New Delhi.

READ: Indian Economy Registers 4.5% GDP Growth Rate In Q2; Down From 5% In Q1; Full Release Here

Dr. Singh calls for the government to implement measures to boost the economy

In his speech, Dr. Singh said, "The state of our economy is deeply worrying. But today I will argue how the state of our society is even more worrisome and that is a fundamental reason for the precarious state of our economy. One cannot separate society from economy in any nation. The state of our economy categorised as industry, agriculture, trade, jobs, taxes, monetary policy and fiscal policy have already been discussed at length. There is no one today that can deny the sharp slowdown in India’s economy & its disastrous consequences particularly for our farmers, youth & poor."

He continues, "The GDP figures released today point that the growth rate of our economy in Q2FY20 is as at 4.5%. This is clearly unacceptable and the aspirations of our people want that this country should grow at 8-9% p.a. And therefore the sharp decline in growth rate from 5% in the first quarter to 4.5% in the second quarter is indeed worrisome. It is my belief that mere changes in economic policy will not help revive the economy. We need to change the current climate in our society from one of fear to one of confidence for our economy to start growing robustly again at 8% p.a. A nation's state of the economy is also a reflection of the state of its society. An economy is a function of the numerous exchanges and social interactions among the people and various institutions."

READ: Chief Economic Advisor Subramanian: 'GDP Likely To Pick Up In Q3'

Dr. Singh's remarks come on a day when the GDP numbers released showed that the GDP growth in the second quarter of the current fiscal year hit an over six-year low of 4.5 percent. 

The Gross Domestic Product (GDP) growth was recorded at 7 percent in the corresponding quarter of FY 2018-19. In the previous quarter of the ongoing fiscal, economic growth was 5 percent. The GDP growth data for the September 2019 quarter is the lowest since January-March of 2012-13 when it was registered at 4.3 percent.  According to the data released by National Statistical Office (NSO), the gross value added (GVA) growth in the manufacturing sector contracted by 1 per cent in the second quarter of this fiscal from 6.9 percent expansion a year ago.

READ: Govt Must Bring White Paper On Status Of Indian Economy: Yechury

READ: Cong Slams Govt Over State Of Economy, Says Rural India 'driven Into Hole'