Former finance minister and senior Congress leader P. Chidambaram said the Indian economy is still in the woods. Delivering the R. K. Shanmugam Memorial Lecture, organised by The Tamil Chamber of Commerce in Chennai on Saturday, he also took a jibe at the Centre’s claim of V-shaped recovery of the economy.
Mr. Chidambaram pointed out that the economy is seeing a two-speed K-shaped recovery where some have seen their income and wealth grow, while the majority have suffered pain and economic loss.
Only 10% of the population has seen some increase in the income, while 40% has seen a sharp fall in income, while it has been a status quo for the remaining 50%, he added.
Mr. Chidambaram also cited Reserve Bank of India’s commentary that demand has been sluggish, while growth in bank deposits have dropped, household debt has risen, financial savings have declined and high fuel prices have crowded out other discretionary spending.