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Modi Govt's One-Size-Fits-All Approach Ruined Economy: Chidambaram

The Quint speaks to P Chidambaram in an exclusive chat.

Criticising the PM Narendra Modi-led government’s economic policies, the former finance minister said that Modi government’s one-size-fits-all approach has put the Indian economy in a dismal state.

How much of a challenge will the current economic situation be for the next government?

The party which forms the government must deal with the situation. I think Manmohan Singh has made the most accurate assessment of the state of the economy. It is based on facts. The data has been taken from the Ministry of Finance’s report from March 2019. From the government data, Singh has made a detailed assessment that the Indian economy is in a terrible state. Many newspapers have written editorials on the dismal state of Indian economy. If there’s a non-BJP government, obviously it will have to deal with this situation.

Also Read: What the Indian Economy Needs Now: Economists Weigh In 

The Congress party has made big promises. How will you get the money?

The policies we have made, nobody is bothering to check the details. We have done the math. Everyone is just talking pointlessly. Take some time out, take a piece of paper, calculate and tell me which number is wrong. Fiscal deficit of the previous year has no impact on the next year. The new year starts on a fresh slate. 2019-20 will be fresh assessment of revenue, budget and capacity.

Also Read: Liquidity status, fiscal deficit under control: Government

What is your comment on the current economic situation?

The situation is such that it can’t be explained in a few sentences. This government let NPAs get out of control, and, then dealt with the NPA crisis in an amateurish fashion. The government didn’t keep a close eye on financial markets. As Dr Manmohan Singh has pointed out correctly, this government adopted a one-size-fits-all approach to everything. This has boomeranged upon them. It didn’t keep an eye on liquidity also.

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