New Delhi: Former Prime Minister Manmohan Singh on Friday shared his worry over the precarious state of the economy, blaming the government's policy doctrine that looks upon every industrialist, banker, policy maker, regulator, entrepreneur and citizen with suspicion.
The doctrine is the root cause of a sense of hopelessness in the society which is stifling economic activity and growth, he said, while delivering the valedictory address at a national conclave.
He said the economy is going down despite once-in-a-generation opportunity to catapult India into the next phase of development and create new jobs for hundreds of millions of youth.
Singh urged Prime Minister Modi that this is possible "only if he sets aside his deep-seated suspicion of our society and nurses us back to a harmonious, confident and mutually trustworthy society that can revive the animal spirits and help our economy soar."
Noting that India is now a $3 trillion global economic powerhouse driven largely by private enterprise, Singh said: "It is not a tiny command and control economy that can be bullied and directed at will. Nor can it be managed through colourful headlines and noisy media commentary.
"Shooting down messengers of bad news or shutting off economic reports and data is juvenile and does not behove a rising global economic powerhouse. No amount of subterfuge can hide the performance and analysis of a $3 trillion market economy of 1.2 billion people. Economic participants respond to social and economic incentives, not diktats or coercions or public relations."
He said no one can deny the sharp slowdown, not even Finance Minister Sitharaman and yet she does not see its disastrous consequences, particularly for farmers, youth and the poor. His worry is that the government has lost public trust. "Mutual trust and self-confidence are the bedrock of societal transactions that foster economic growth. Our social fabric of trust and confidence is now torn and ruptured," he underlined.
Singh noted that there was a palpable climate of fear in the society. He said "many industrialists tell me they live in fear of harassment by government authorities, bankers are reluctant to make new loans, for fear of retribution, and entrepreneurs are hesitant to put up fresh projects, for fear of failure attributed to ulterior motives."
Technology start-ups that are an important new engine of economic growth and jobs, seem to live under a shadow of constant surveillance and deep suspicion. Policy makers in government and other institutions are scared to speak the truth or engage in intellectually honest policy discussions.
