IMF's projection: Cong accuses PM of derailing India's growth

Latching on to IMF's projection of lower growth rate for India, Congress today targeted Prime Minister Narendra Modi on demonetisation accusing him of "derailing" the country's growth story.

"Prime Minister Narendra Modi, in his hubris has managed to do what our enemies have failed since 1947, which is derail India's economic growth story," the party said.

Noting that the latest prediction by the International Monetary Fund has lowered India's GDP growth forecast from 7.6 per cent to 6.6 per cent, it said it is "primarily due to Modi's demonetisation decision." In a post titled "India no longer the fastest growing economy, courtesy PM Modi", the AICC said that the justification for the lowering of the GDP forecast was "primarily due to the temporary negative consumption shock induced by cash shortages and payment disruptions".

Industry, trade and agriculture have all been negatively hit due to the government's decision, which has been panned by reputed economists from across the world, the opposition party said.

"Never before has an Indian Prime Minister exposed his own office to such a level of global criticism. In contrast, the IMF has raised China's GDP growth forecast due to an expected policy stimulus," it said.

"The economic disruption has been seen across almost all sectors. Bank credit fell to a multi-decade low for the fortnight ending December 23, 2016. SBI chief economist has said this has been the slowest credit growth in over 60 years.

The purchasing managers index (PMI) has shown that both manufacturing and services have shown contraction," the post said.

"When Modi went on his election campaign in 2013, armed as he was, with good speech writers and well-funded public relations machinery behind him, he lamented the 'pitiable state' of India's economic story," it said.

Attacking the Prime Minister, the party said that Modi promised to take the economy to 'new heights', but all he did was some "simple number jugglery" to show a growth in the GDP.

He has been unable to deliver neither jobs nor the economic progress he promised, the party said.

"Forget surpassing UPA's record, he has not even been able to match it. While Modi can give good speeches, it is the Congress which gives India good policies targeted at strengthening the Indian economy, and empowering its people", it added.