Industrialists living in fear of govt harassment: Manmohan Singh

Manmohan wrote worrying statistics were manifestations of a deeper malaise

manmohan modi reuters (File) Manmohan Singh standing behind Prime Minister Narendra Modi | Reuters

Former prime minister Manmohan Singh has criticised the Narendra Modi government for its handling of the economy several times in recent months. But in an opinion piece for The Hindu, Manmohan argued the worrying statistics of plunging growth were just "mere manifestations of a deeper underlying malaise that plagues the nation’s economy today".

Manmohan wrote that a nation's economy was also "a function and reflection of the state of its society". Noting that mutual trust and self-confidence were the bedrock of social transactions that foster economic growth, Manmohan claimed, "Our social fabric of trust and confidence is now torn and ruptured."

Manmohan claimed there was a "palpable climate of fear" in society. He said "many industrialists" had told him they live in fear of harassment by government officials. "Entrepreneurs are hesitant to put up fresh projects, for fear of failure attributed to ulterior motives. Technology start-ups, an important new engine of economic growth and jobs, seem to live under a shadow of constant surveillance and deep suspicion. Policymakers in government and other institutions are scared to speak the truth or engage in intellectually honest policy discussions," Manmohan wrote in The Hindu.

Manmohan also argued "there was an air of helplessness too," noting public trust in independent institutions, "such as the media, judiciary, regulatory authorities and investigative agencies, has been severely eroded". Manmohan opined the "toxic combination of deep distrust, pervasive fear and a sense of hopelessness in our society is stifling economic activity, and hence, economic growth".

Manmohan alleged the root cause of these problems was the Narendra Modi government's 'doctrine' of governance, which he described as "mala fide unless proven otherwise". "This suspicion that every industrialist, banker, policymaker, regulator, entrepreneur and citizen is out to defraud the government has led to a complete breakdown of trust in our society," Singh wrote in The Hindu.

Referring to India as a "$3-trillion global economic powerhouse driven largely by private enterprise", Manmohan argued it was "not a tiny command and control economy that can be bullied and directed at will”. Manmohan took pot-shots at the Modi government's perceived use of publicity initiatives, writing the economy could not be managed by "colourful headlines and noisy media commentary". Manmohan also appeared to allude to the Modi government's recent decision to reject NSO data on consumption, calling the rejection of data as "juvenile."

"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," Manmohan wrote.