FORMER Finance Minister in the Atal Bihari Vajpayee government said private
investment had shrunk "as never before in two decades" while industrial
production had all but collapsed."Agriculture is in distress,
construction industry, a big employer of the workforce, is in the
doldrums, the rest of the service sector is also in the slow lane- Yashwant Sinha, senior BJP leader, today ruffled the feathers of union government with
his strong critique on the state of Indian economy. According to Sinha,
the economy is heading towards a "hard landing". However, BJP has
rejected Sinha's piece, while the Congress has hailed his analysis.
Sinha, who has now estranged from the BJP, was the Finance Minister in
the Atal Bihari Vajpayee government. In his piece for the Indian
Express, Sinha said, Prime Minister Modi "claims he has seen poverty
from close quarters (and) his Finance Minister (Arun Jaitley) is working over-time to make sure that all Indians also see it from equally close quarters".
Illustrating the picture of the economy today, Sinha said private
investment had shrunk "as never before in two decades" while industrial
production had all but collapsed.
"Agriculture is in distress, construction industry, a big employer of
the work force, is in the doldrums, the rest of the service sector is
also in the slow lane, exports have dwindled, sector after sector of the
economy is in distress."
He singled out demonetisation, saying spiking large currency notes "has
proved to be an unmitigated economic disaster" which coupled with "a badly conceived and poorly implemented GST" has played havoc with businesses and sunk many of them.
HEAVY BURDEN
The outspoken Sinha noted that Jaitley, who also holds the department of
disinvestment and Department of Corporate Affairs and earlier held the
Defence Ministry, was carrying the "heavy burden" of many extra
responsibilities and it was "perhaps too much to expect from" him.
Sinha said he was speaking about the mess after realizing that "I shall
be failing in my national duty if I did not speak up even now".
"I am also convinced that (it) reflects the sentiments of a large number
of people in the BJP and elsewhere who are not speaking up out of
fear."
Congress leader and former Finance Minister P. Chidambaram lauded Sinha's critique, saying he was absolutely correct when he wrote that "instilling fear in the minds of the people is name of the new game".
Chidambaram said the Congress had assiduously exposed the "many weaknesses and a terrible mismanagement" of the economy.
SINHA ECHOED OUR CRITICISM
"We are happy that Yashwant Sinha has echoed our criticism," said
Chidambaram, who added: "It is not often that from this platform the
principal opposition party will welcome a statement of a veteran leader
of the ruling party."
Chidambaram said Sinha's views were not different from what MPs
belonging to the BJP and other parties "have told us since many months
privately and in soft whispers".
He said it was a sad commentary on the times that MPs were afraid to
reflect what they see and hear around them, especially in their
constituencies. "Yet we call ourselves a free country."
Chidambaram said it were not only MPs who have become silent. "We have
witnessed numerous examples of news reports and articles being pulled
out before publication; of television interviews being taken off air; of
scheduled talks at universities being cancelled; of social activists
being investigated on trumped up charges; of editors and reporters being
unceremoniously sacked; of academics and scholars being threatened; of
judges being indirectly punished; and, most tragically, of authentic
voices of the people being silenced by brutal killings."
NOBODY DARES TO ASK QUESTIONS
Chidambaram said at least a dozen BJP MPs have "spoken to us" in the
Central Hall and in committees about the economy. "Nobody dares to ask
questions. An MP from Maharashtra who raised questions was asked to shut
up. In this atmosphere of fear, if Sinha speaks up then he is speaking
the truth."
The government rejected Sinha's criticism, saying the world acknowledged that India "is one of the fastest growing economies".
"No one should forget it. Our image at the international level is very strong," Home Minister Rajnath Singh told reporters.
Railway Minister Piyush Goyal said
Prime Minister Modi has given the "cleanest government" and had
attacked black money and corruption like no one else has done
