Note Ban Biggest Scam of 2016: Chidambaram on Low GDP Figures

He said the economy is going down very rapidly and unless corrective measures are taken, it will go further down.

P Chidambaram, Leader, Congress. (Photo: PTI)

The Congress on 1 June said the latest GDP numbers have exposed the "lies" of the BJP-led NDA government which “tried to deflect public attention from its failures” and said it needs to answer why the Indian economy is “facing a serious slowdown".

Former finance minister P Chidambaram, who had criticised the note ban and said it would lead to a fall in GDP, said he has been proved right as he warned that the economy will further slide if corrective steps are not taken.

"The economy began slowing down in July 2016. Demonetisation made it worse," Chidambaram said.

“Government must be guided by genuine economists. Instead the government brushed aside their views. Demonetisation was the biggest scam of 2016,” he said.

“Instead of taking corrective steps,the government demonetised high value currency and now Indian economy has taken a hit of 1.3 percent.”

He said demonetisation was an "extraordinarily foolish measure" that has set back the economy even further.

"In the meanwhile, millions of people plunged into misery."

Chidambaram said the three indicators of a vibrant economy are down – the investment to GDP ratio, credit growth and the number of jobs that were created – and added that the government has totally failed.

Chidambaram said the economy is going down very rapidly and unless corrective measures are taken, it will go down even further.

"We have warned the government. We are forewarning the people of India and let us see how the government responds to the CSO figures," he said referring to the Central Statistics Office.