Former prime minister Manmohan Singh slammed the Centre’s November decision to ban Rs 500 and Rs 1,000 notes, saying the move had slowed the economy, resulting in job losses.
Earlier, he’d predicted the move would bring the country’s gross domestic product (GDP) growth down by two percentage points.
Speaking during a Congress Working Committee meeting, Singh noted gross value added (GVA), a sub-measure of economic activity, had seen a steep fall, citing GDP numbers for the fourth quarter and full year of 2016-17, released a few days earlier by the Central Statistics Office.
He said private sector investment had collapsed and the economy was running only on the engine of public spending. He said GVA growth had fallen from 10.7 per cent in March 2016 to 3.8 per cent in March 2017.
Most worrisome, he said, was the effect on job creation for youth. He pointed to the impact on the construction sector.