Former President Pranab Mukherjee on Tuesday termed the recent upward trends witnessed in stock markets of the country as mere financial transactions by some blue chip companies and these trends would have very little impact on GDP growth. Whatever little impact these indices would contribute to the GDP growth, they would not create a single job, Mukherjee said while delivering a talk arranged by the Ravenshaw Unversity Development Trust here on Tuesday.
“We are not for growth in terms of numerical statistics. But growth for creating wealth and having the possession of that wealth at the hands of the people,” Mukherjee said emphasising on having a growth, which will create jobs, create income and wealth at the hands of the people.
Stating that India during last ten years had witnessed GDP growth rate at more than eight percent but there has been stagnation recently, Mukherjee, who served as a Finance Minister for a substantial period, said, “Probably, we will overcome the current stagnation and we will have a growth rate at seven to seven-and-a-half per cent.”
Raising a very fundamental question as to what type of growth India needs, the former President, who retired only three months ago, said the unemployment situation in the country should be reflected in our policy formulations in the coming years, which would ensure real growth.
He said the policies should ensure that we cannot only have steady and substantial growth, but at the same time, growth must create a condition which will enhance the income of people at large.
“If we can have this, then the stock market indices will be a reality. Today it is not reality because today, we are having some blue chips that are transferring funds which are monetary gain for few people,” Mukherjee said adding that the current upward trends in the stock markets would not contribute in expanding the GDP.