‘Job Crisis to Worsen, Businesses Scared to Invest’: P Chidambaram

Chidambaram added that raising revenues required understanding of macro-economics, which the BJP lacked.

File image of Former Finance Minister P Chidambaram.

(Photo: Altered by The Quint)

Video Editor: Ashutosh Bharadwaj

In an exclusive conversation with The Quint’s Editorial Director Sanjay Pugalia, former Union minister P Chidambaram on Wednesday, 15 January, said that India’s unemployment crisis is only likely to worsen as “businesses are scared to make investments in the country.”

Citing the examples of Oyo, which recently laid-off over a thousand employees, and the software, automobile sector which sent home thousands of employees, Chidambaram said that businesses are beginning to de-leverage and shed debt, and “shedding” employees is inevitable

“PM Modi is essentially a controller, he is not a instinctive liberal and likes to regulate everything. Which is why they have given extraordinary power to income tax department, customs department, excise department, to the agencies and each one is issuing notices left and right. Businesses are scared to touch anything.”

P Chidambaram, Former Finance Minister

Chidambaram said that businesses are “sitting on piles of cash” and that they are paying their debts, there is right-sizing but not investing.

‘Complete Lack of Talent in BJP Govt’

He also added that raising revenues required understanding of macro-economics, which the BJP lacked.

“This requires an understanding of the macro-economy, which the BJP does not understand. Their failure to raise revenues, not only this year but also the previous year. This government has a serious lack of talent. And the answer is very simple, if you don’t have talent, hire talent. There are any number of Indians, in India and abroad, who are completely competent to run the economy.”

P Chidambaram, Former Finance Minister

Admitting that every minister has “hidden numbers” in the Budget, including him, Chidambaram pointed that the Modi government has “gone beyond all limit.”

“Scale makes a difference. For the first time, our numbers are not being believed in the world. In UPA time, our numbers were believed. Even Indian economists abroad, don’t believe our numbers. We are being compared to China six years ago.”

P Chidambaram, Former Finance Minister

Watch the full interview here.