Nosediving economy in PM Modi's 'Amrit Kaal': Congress

The "sluggish" pace of GDP shows there is a shortage of investment leading to unemployment and people having less disposable income, the Congress claimed on Tuesday and described the situation as a "story of nosediving economy" in Prime Minister Narendra Modi's 'Amrit Kaal'.

As India's GDP growth slowed to 4.4 per cent in the third quarter from 13.5 per cent in the first quarter, the opposition party said it is a "big decline".

"The GDP growth was not even half as compared to the first quarter. This is a big blow on the economic front. Slow pace of GDP means less investment in the country, less money in pocket and employment crisis," the party said.

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In a tweet, the Congress said, "India's GDP grows at 4.4 per cent in the third quarter. The sluggish pace of the GDP growth suggests that there is a shortage of investment, resulting in less disposable income for people and unemployment."

"Survival is a real challenge for a common man in Modi's 'Amrit Kaal'. Nine years of Modi govt are a story of nosediving economy," it said and shared a picture of the falling GDP along with a graph.

Congress secretary Vineet Punia tweeted, "Increasing Income Disparity. Plunging GDP. Falling Rupee. Soaring Unemployment. Swelling NPAs. Increasing Miseries for the people of India."

India's economic growth slowed to 4.4 per cent in the December quarter on continued weakness in the manufacturing sector and rising borrowing costs hurting demand, ahead of a crisis at Adani group and predictions of a hot summer.

While the growth was lower than the market estimate of 4.7 per cent, the GDP growth for FY22 (April 2021 to March 2022) has been revised to a higher at 9.1 per cent (from 8.7 per cent) and has consequently led to a major change in the base factor.

The slowdown came ahead of turbulence in the capital and financial markets witnessed following allegations of fraud in the Adani Group and the prediction of a hot summer. Adani group has denied all allegations.

The government, however, continues to be confident about touching a GDP growth of 7 per cent for FY23 (April 2022 to March 2023) as a whole.

Asia's third-largest economy recorded year-on-year growth of 4.4 per cent in October-December, down from 11.2 per cent a year back and 6.3 per cent in the preceding quarter, according to data released by the National Statistical Office on Tuesday.