Former President Pranab Mukherjee said on Wednesday that he was not worried over the economic slowdown as "certain things" that are happening would have its impact. Mukherjee was the former finance minister in the UPA government, further said there is nothing wrong in public sector banks needing a capital infusion.
"I am not worried over the slow rate of GDP growth in the country. Certain things happening will have its impact," he said while addressing an event at the Indian Statistical Institute (ISI) here.
Former President Pranab Mukherjee at Indian Statistical Institute (IIS), Kolkata: I am not very much worried over the slow Gross Domestic Product (GDP) growth because certain things happened, which had its impact. (11.12.19) pic.twitter.com/gI2zoIbIcw— ANI (@ANI) December 11, 2019
He said Indian banks showed resilience during the financial crisis in 2008. "I was the Finance Minister then. Not a single public sector bank had approached me for money," he said. Now, the public sector banks need massive infusion of capital and there is nothing wrong in it, Mukherjee added.
He further asserted the sanctity of data to be equally important in a democracy otherwise the impact will be disastrous. Stating that the erstwhile Planning Commission played an important role in the development of the country's economy, Mukherjee said, "I am happy that some functions are still being carried on by the Niti Aayog."
On December 3, the Dravida Munnetra Kazhagam (DMK) gave an adjournment motion notice in Lok Sabha over "economic recession and unprecedented job loss in the information technology sector." Last week, the government had released GDP figures which displayed a slower economic growth at 4.5 per cent in the July to September quarter, in comparison to the 7.1 per cent growth rate in the same quarter last year. The Indian economy has witnessed a weak performance in the last quarter as well with the GDP rate going down to 5 per cent. As per a statement released by the Ministry of Statistics and Programme Implementation, the slowdown in Q2 FY20 is believed to be a result of a sharp dip in the manufacturing sector and the agricultural output.
(With Agency Inputs)