Chidambaram, BJP in war of words over GDP data

NEW DELHI: The July-September quarter GDP data sparked off a war of words between the BJP and former finance minister P Chidambaram.
Chidambaram termed the 5.3% growth in the second quarter as “poor” and blamed the NDA government for not taking measures to maintain the growth momentum drawing a sharp response from BJP spokesman Sambit Patra.
“The problems were identified in 2012, corrective measures were taken, and momentum was built up in sectors such as electricity, coal, agriculture and reviving stalled projects.That momentum should have been maintained - and accelerated - in the first six months of the new Government. It did not, and the result is poor Q2 growth.,” Chidambaram said in a statement.
Patra slammed the former FM’s comments. “ Coming from somebody like Mr Chidambaram who ran the economy to ground, it is an amazing piece of audacity.”
Chidambaram said he had cautioned the government about the weakness in the economy when it had “rushed to take credit” for the first quarter growth of 5.7%
“All the signs of a sluggish economy were there -- low credit growth, a limping manufacturing sector, no new major investments, stalled projects, infrastructure bottlenecks etc. Government should have focused on these matters. Alas, it did not. Nor did it use its Parliamentary majority and its claim of a 'strong' Executive branch to push legislative and administrative measures,” Chidambaram said.
The former FM also advised the government and the finance minister to use his persuasive powers to convince the RBI Governor that a rate cut is an imperative, if for no reason other than to signal to investors and consumers that the economy will move toward a lower interest phase.
Patra rejected Chidambaram’s criticism saying under his charge growth had dipped below the 5% mark to 4.7%.
“You don’t need to be a mathematician. 5.3% growth in the second quarter certainly looks better than 4.7%. Its elementary mathematics,” he said.
“But we would have done better had it not been for the mess that Mr Chidambaram and his government left behind,” Patra said.