Sandeep Dikshit
Tribune News Service
New Delhi, November 29
Former Prime Minister Manmohan Singh today said mere changes in the policy alone will not help revive the economy as a “toxic combination” of deep distrust, pervasive fear and a sense of hopelessness in society is stifling economic activity and, hence, economic growth.
“With an absolute majority in the Lok Sabha and low global oil prices, this is a once-in-a-generation opportunity to catapult India to the next phase of economic development and create new jobs. I urge the Prime Minister to set aside his deep-rooted suspicion of our society and nurse us back to a harmonious, confident and mutually trustworthy society that can revive the spirits and help our economy soar,” he said.
In his valedictory address at the National Economy Conclave organised by the Samruddha Bharat Foundation and Rajiv Gandhi Institute of Contemporary Studies here, Dr Singh spoke of a palpable climate of fear in society.
“Many industrialists tell me they live in fear of harassment by authorities. Bankers are reluctant to make new loans, for fear of retribution. Entrepreneurs are hesitant to put up fresh projects, for fear of failure attributed to ulterior motives. Startups that are an important new engine of economic growth and jobs, seem to live under a shadow of constant surveillance,” he said.
“Policy makers in government and other institutions are scared to speak the truth or engage in intellectually honest policy discussions. There is profound fear and distrust among our various economic participants. Public trust in independent institutions such as the media, judiciary, regulatory authorities, and investigative agencies has been severely eroded,” he said.
He pointed out that India is now a $3 trillion global economic powerhouse driven largely by private enterprise and not a tiny command and control economy that can be bullied and directed at will.
4.5% GDP growth unacceptable: Manmohan
HT Correspondent
letters@hindustantimes.com
New Delhi : Terming the GDP growth rate of 4.5% in the July-September quarter unacceptable and worrisome, former prime minister Manmohan Singh on Friday called upon his successor Narendra Modi to set aside what he called his “deep-rooted suspicion” of society, and also advocated the need to change the current climate of fear to enable the economy to grow robustly again at 8% per annum.
“Mutual trust and self-confidence are the bedrock of societal transformations and transactions that foster economic growth. Our social fabric of trust and confidence is now torn and ruptured. There is a palpable climate of fear in our society today,” he said, delivering his valedictory address at a conference here.
“Many industrialists tell me they live in a fear of harassment by government authorities, bankers are reluctant to make new loans for fear of retribution and entrepreneurs are hesitant to put up fresh projects for fear of failure attributed to ulterior motives. Policymakers in government and other institutions are scared to speak the truth,” Singh said. Singh added that there is no one who can deny the sharp slowdown in India’s economy and its disastrous consequences, particularly for our farmers, youth and the poor.
“The GDP figures released earlier today point the growth rate of our economy in the second quarter of current fiscal year, is as low as 4.5%. This is clearly unacceptable, and the aspirations of our people want that this country should grow at 8-9% per annum…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 again at 8% per annum,” he said.
He said public trust in independent institutions such as the media, judiciary, regulatory authorities and investigative agencies has been severely eroded. “The root cause of all this is the government’s policy doctrine that seems to suspect every industrialist, banker, policymaker, regulator, entrepreneur and every citizen. The Modi government seems to view everything and everyone through a tainted prism of suspicion and distrust,” he said. For economic growth to revive, he said, it is very important that the government sheds its current doctrine and begins to trust farmers, entrepreneurs and citizens at large.
“With an absolute majority in the Lok Sabha and low global oil prices, this is a once-in-a-generation economic opportunity to catapult India to the next phase of economic development and create new jobs for hundreds of millions of our youth. I urge the PM to set aside his deep-rooted suspicion of our society and nurse us back to a harmonious, confident and mutually trustworthy society that help our economy soar,” Singh said.
After the GDP numbers were announced, Gopal Agarwal, the BJP’s spokespeople on economic affairs tweeted, “All d #macroeconomic parameters, which r important 4 economic stability; like #FiscalDeficit #ForeignExchangeReserve #CurrentAccountDeficit #FDI #Inflation in healthy terrain. Concerns like private consumption & govt expenditure hv increased, showing govt measures bearing results.”
