Attacking the Centre, former Prime Minister Dr Manmohan Singh on Tuesday said unemployment is high in the country and its informal sector

Attacking the Centre, former Prime Minister Dr Manmohan Singh on Tuesday said unemployment is high in the country and its informal sector is in shambles following the "ill considered demonetisation decision" taken by the BJP-led government in 2016.

He also criticised the central government for not holding regular consultations with the states.

Manmohan Singh

Inaugurating a development summit virtually organised by the Rajiv Gandhi Institute of Development Studies, Singh said temporary measures by the Government of India and the Reserve Bank to paper over the credit problem cannot blind us to the looming credit crisis ahead that could affect the small and medium sector.

"Unemployment is high and the informal sector is in shambles, a crisis precipitated by the ill considered demonetisation decision taken in 2016", he said at "Pratheeksha 2030."

The summit was organised to launch a Vision Document, a framework of ideas for development of Kerala well in advance of the state elections.

Manmohan Singh

He said in Kerala and in many other states, public finances are in disarray with states having to resort to excessive borrowing, which creates an intolerable burden on future budgets.

Singh said while Kerala's social standards are high, there are other sectors that need strong attention in the future.

Manmohan Singh

"There are many roadblocks ahead that the state has to overcome. The global downturn of the last two or three years, aggravated by the pandemic, has made the global interface of Kerala more fragile.

Noting that the focus on health and education has enabled Kerala to take advantage of job opportunities elsewhere in the country and in all parts of the world, Singh said this has led to a growing stream of remittances from abroad which created a booming real estate sector and sharp growth of the services sector, led by tourism and information technology.