State of economy cause of 'extreme concern': Chidambaram

Senior Congress leader Chidambaram said a slower rate of growth has been the "hallmark" of the present government in the last eight years and the post-pandemic recovery has been "indifferent and halting"

Asserting that the state of economy is a cause of "extreme concern", senior Congress leader P. Chidambaram on May 14 said taking into account global and domestic developments, it may be necessary to contemplate a reset of economic policies.

Addressing a press conference, Chidambaram said a slower rate of growth has been the "hallmark" of the present government in the last eight years and the post-pandemic recovery has been "indifferent and halting".

Chidambaram, who heads the panel on economy constituted by Congress president Sonia Gandhi to lead discussions at the three-day 'Chintan Shivir' in Udaipur, also said the time is ripe for a comprehensive review of fiscal relations between the Centre and the States.

The consequences of the poorly drafted and unfairly implemented GST laws brought in by the Modi government in 2017 are there for everyone to see, the Congress leader said.

"The States' fiscal position is fragile like never before and needs urgent remedial measures," said the former Finance Minister, flanked by some other members of the panel such as Gourav Vallabh and Supriya Shrinate.

Noting that the Congress-led government ushered in a new era of liberalisation in 1991, Chidambaram said the country has reaped enormous benefits in terms of wealth creation, new businesses and new entrepreneurs, a huge middle class, millions of jobs, exports and lifting 27 crore people out of poverty during a 10-year period.

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