This was pre-lockdown: Chidambaram slams BJP for low Q4 GDP growth

Senior Congress leader P Chidambaram on Friday (May 29) said the 3.1 per cent GDP growth in the January-March quarter of 2019-20 is a telling commentary on the economic management of the BJP government.

“We had forecast that GDP for Q4 will touch a new low at below 4 per cent. It has turned out to be worse at 3.1 per cent. It is a telling commentary on the economic management of the BJP government,” he tweeted.

The former finance minister also pointed out that the fourth quarter (January-March 2020) was before a lockdown was enforced, suspending all economic activity. “Remember, this is pre-lockdown. Of the 91 days of Q4, lockdown applied to only 7 days,” he said.

India’s economic growth slowed to 3.1 per cent in January-March and to an 11-year low of 4.2 per cent for the full fiscal 2019-20 amid a drop in consumption and investment.

The Gross Domestic Product (GDP) growth stood at 5.7 per cent in the corresponding quarter of 2018-19, according to the data released by the National Statistical Office (NSO) on Friday.

During 2019-20, the Indian economy grew at 4.2 per cent as against 6.1 per cent in 2018-19. The economic growth was the lowest in 2008-09 when the economy had expanded at 3.1 per cent.

The government had imposed a lockdown to control the spread of COVID-19 from March 25, 2020, which resulted in a slump in economic growth. A slew of fiscal measures were announced later as part of an economic stimulus package worth ₹20 lakh crore to help revive the economy.

However, the stimulus package has received severe criticism, since it was believed to have an economic impact of merely ₹1 lakh crore, when the package itself was worth 20 times more.

(With inputs from agencies)