HP Congress General House Meeting 2016

Modi’s claim of achieving highest FDI and surging economy incorrect and misleading: Congress

SHIMLA- During the general house meeting of Himachal Pradesh Congress held in Shimla on Monday, Congress leader Anand Sharma challenged claims of the Prime Minister Modi about growth in GDP.

He said the weak GDP growth in the first quarter of the current financial year raises serious concerns over the State of the Indian Economy. Despite Government’s efforts over the State of Indian Economy despite Governments efforts at inflating figures, glossing and misrepresenting numbers, the growth is far below what is projected.

Modi’s claim that India is receiving the highest ever FDI is factually incorrect and wrong, he alleged. Government itself has informed the Parliament on July 20, 2016 that India received FDI of USD 40 Billion in 2015-2016. It is an imperative to remind that the highest FDI India received was USD 46.65 billion in 2011. It is equally a matter of concern that only 24 percent of the FDI received in the last two years has been in manufacturing whereas services share of FDI is 76 percent.

Key parameters of Economy: Investments, Savings, Capital formation, capacity utilization and Merchandise Exports are in sharp decline, said Sharma. Contrary to be boastful claims of Modi and Finance Minister Jaitely, the Indian Economy is not surging but is struggling one.

The investment sentiments are depressed, investment rate is negative, and the Gross Capital Formation (GFCF) has fallen in real terms, he claimed.  Let alone creation of new manufacturing capacities, there is non-utilisation of over one third of the existing Industrial Capacity, Industrial Credit off take has fallen to 20 years low, and large scale layoffs of Industrial workers has further aggravated the situation.

He further added that the BJP government had come to power promising two crore jobs annually but has led to a situation of jobless growth. No new jobs are being created. Tens of thousands of jobs have been lost in labor intensive expor Sectors and in Industrial Manufacturing. Rising unemployment has resulted in anxiety and despair among the youth, claimed Sharma.

He said the government that had assumed office in an environment of hope and high expectations has failed to deliver on its promises. The people, especially the unemployed youth and the poor feel betrayed.

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