Tyres of Indian economy are punctured: Chidambaram

Former finance minister P Chidambaramblamed the NDA government on Monday for the prevailing state of the Indian economy.

He said that the policies implemented by the NDA were responsible for the bad economy of the state.

He further said the tyres of three of the four wheels on which the economy rides were punctured.

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"The tyres of three of the four wheels on which the economy rides are punctured. Firstly exports: the growth rate in the last four years have been negative. Secondly, private investment: it is in the doldrums, if not dead. Gross fixed capital formation is stuck at 28.5 per cent for three years. Thirdly, private consumption: it was limping until a few months ago, there is a mild up-pick, and we keep our fingers crossed".

Hitting out at the government's GST and Demonetisation policies, he said a flawed road to GST continues to haunt trade and business, and the adverse effect of demonetisation have been established 'beyond doubt'.

He added that the various sections of the country like the farmers and the youth were distressed due to the unavailability of enough remunerative prices for their produce and unemployment.

"The only tyre that seems to be inflated is government expenditure, but here too the government's options are getting limited because of the pressure on the current account deficit and the fiscal deficit," he said.

"So far nobody has bought the innovative idea that 'frying pakoras is also a job'," he quipped.

Chidambaram was addressing a press conference in New Delhi on Monday.

(With inputs from PTI)