Demonetisation and faulty implementation of GST have triggered this slowdown, The former PM said

Former Prime Minister Manmohan Singh believes Indian economy is facing a slowdown, which is both structural and cyclical in nature. In an interview with Hindi daily Dainik Bhaskar, he said the first step towards addressing it should be to acknowledge the fact that we are facing a crisis

The former prime minister has recommended a six-pronged action plan for the Modi government to tackle the ongoing crisis, which he attributes to demonetisation and faulty GST rollout. The Congress stalwart believes that the country can return to a high growth trajectory in 3-4 years if the government takes appropriate action.

The government needs to address the issue in a transparent manner, listen to experts and all stakeholders with an open mind, and project serious intent to handle the crisis, Singh said, adding, “The government must instil confidence in the people and send a message to the world. Unfortunately, I do not yet see such a focussed approach from the Modi government, Singh said.

‘Simplify GST regime’

As a top priority, the Modi government must radically simplify and rationalise the GST regime, even if it means a loss of revenue in the short term, he said, adding, “Secondly, the government must find innovative ways to kickstart rural consumption and revive agriculture.”