BJP allies 'concerned' as GDP falls to 4.5%

As per the government data released on Friday, the GDP in Q2 is 4.5%, the lowest since Mar 2013.

Naresh Gujral, the leader of BJP's ally Siromani Akali Dal (SAD), told The Indian Express, "The state of the economy is alarming, we all are concerned."

"It is causing alarm because of the joblessness and lack of growth which is leading to unemployment.” 

Giving a political warning to the country's ruling party, Gujral further told the newspaper, "The allies are quite unhappy. The oldest ally, Shiv Sena, has already walked out and others are waiting at the departure lounge.. Allies are not vying for positions, but there has to be consultation."

The Janata Dal (United), a heavyweight ally of the BJP in Bihar, said his party was concerned about the falling GDP, transfer of PSUs to private companies and agricultural crisis.

"The government should not ignore or ridicule warnings of economists or former RBI governors. It should open modes of communication, there should be a meeting of political leaders and economists. People like (former PM) Manmohan Singh should be called to discuss the issue. Because this is not a matter of confrontation, it is a matter of consultation," JD(U) leader K C Tyagi has been quoted by The Indian Express.

The leader told the newspaper, "Being a socialist party, the JD(U) has serious concerns about the pace in which assets of PSU are being sold to private firms. Selling PSU assets for revenue collection has proved to be a wrong method of dealing with economic crisis. During Atal Bihari Vajpayee’s time, there was a ministry for it, but it did not yield results. Even in Manmohan Singh’s term it happened but with no results."

He also said the Modi government should not "ridicule" or "ignore" the warning of the economists.

The GDP figures came out couple of days after Union Finance Minister Nirmala Sitharaman said in the Rajya Sabha that there will never be any recession despite the economic slowdown.

"If you look at the economy with a discerning eye, you see that growth may have come down...but it is not a recession yet and won't be a recession ever," the Finance Minister had said.

Expressing deep concern over the state of economy, former Prime Minister Manmohan Singh, who had liberalised the Indian economy in 1990s as the Finance Minister, said, "There is no one today who can deny the sharp slowdown in India’s economy and its disastrous consequences, particularly for farmers, youth and the poor.

But it is my belief that mere changes in economic policy alone 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."

Image Credit: UNI