Chidambaram: The state of the economy is a source of “extreme concern”

*Paromita Das

P Chidambaram stated that, given global and domestic developments, a reset of economic policies may be necessary.

Udaipur: Asserting that the state of the economy is a source of “extreme concern,” senior Congress leader P Chidambaram said on Saturday that, given global and domestic developments, a reset of economic policies may be necessary.

Chidambaram told a press conference that the current government’s “hallmark” in the last eight years has been slower growth, and that the post-pandemic recovery has been “indifferent and halting.”
Chidambaram, who heads the economic panel appointed by Congress President Sonia Gandhi to lead discussions at the three-day ‘Chintan Shivir’ here, also stated that the time has come for a comprehensive review of fiscal relations between the Center and the States.

The consequences of the Modi government’s poorly drafted and unfairly implemented GST laws are plain to see, according to the Congress leader.

“The States’ fiscal position is fragile like never before and urgent remedial measures are required,” said the former finance minister, who was flanked by other panel members such as Gourav Vallabh and Supriya Shrinate.
Chidambaram stated that since the Congress-led government ushered in a new era of liberalisation in 1991, the country has reaped enormous benefits in terms of wealth creation, new businesses and new entrepreneurs, a massive middle class, millions of jobs, exports, and lifting 27 crore people out of poverty over a 10-year period.

“After 30 years, it is felt that, taking into account global and domestic developments, a reset of economic policies may be necessary.”

“A reset of economic policies must also address rising inequalities, extreme poverty among the bottom 10% of the population, India’s ranking in the Global Hunger Index 2021 (101 out of 116 countries), and evidence of widespread nutritional deficiency among women and children,” he said.
He noted that the external situation has increased economic pressures.

“The government appears to be at a loss for how to deal with these developments,” he added.

“I am confident that our deliberations over three days, and the decisions that the CWC will make in the days and weeks ahead, will make a significant contribution to the nationwide debate on the economic policies that will best serve the interests of the country and its people,” Chidambaram added.

The discussions at the ‘Chintan Shivir,’ which began on Friday, will continue on the second and third days, with the results recorded in the form of a declaration. The Congress Working Committee (CWC) will meet here on the third and final day of the conclave to discuss a draft of the declaration.