Investment climate vitiated: P Chidambaram

The GDP rate for the third quarter could be lower than Q2, former finance minister P Chidambaram has said. He alleged the government was "helpless" in dealing with the external factors and "in denial" about internal factors and the investment climate was "vitiated".

As expected, except by the government, GDP growth rate in Q2 has come down from 13.5% to 6.3%. I am afraid it may be lower in Q3. There are both external factors and internal factors that have pulled down the growth rate. The pity is that the government is helpless against the external factors and in denial about the internal factors. The climate for investment is vitiated. The appetite for investment is poor," Chidambaram said.

His comments came in the wake of the latest estimate by the National Statistical Office that showed that India's GDP for the July-September quarter of 2022-23 slowed to 6.3% due to a variety of reasons. Chidambaram also said that the incremental capital output ratio has perhaps deteriorated. "Given these factors, the chances of lifting the growth rate are low," he said.