- P Chidambaram has criticised the Union budget 2026, saying it ignores key economic challenges.
- He has urged the Finance Minister to address challenges highlighted by the Chief Economic Advisor
- He has also stressed the need for specific steps to boost India's manufacturing sector beyond 15% of GDP.
Former Union finance minister P Chidambaram dismissed the Union budget 2026 presented today by Nirmala Sitharaman, saying it does not address any of the major challenges pointed out in the economic survey.
"There are major challenges facing the globe, facing India. She has not mentioned any of those challenges, nor has she addressed them... Nor does this budget speech or the budget numbers spell out any economic strategy or any economic statesmanship," he told NDTV Editor-in-Chief and CEO Rahul Kanwal in an exclusive interview.
Told that instead of raising alarm and causing anxiety, the government could be doing what it can do behind the scenes, Chidambaram responded with a question. "What are you saying? The left hand spreads panic and the right hand calms the situation, is it? " he said.
Pointing out that the Chief Economic Advisor mentioned these challenges in the economic survey he questioned the reason for the move. The Chief Economic Advisor is a part of the Ministry of Finance, who has a certain degree of autonomy and within that, he has spelt out challenges, he added.
"He has listed the challenges. The Finance Minister must mention those challenges and then address them and calm the situation. She can't ignore those challenges... She should refer to them and address them. Addressing them is not succumbing to panic," Chidambaram said.
Asked about the government's initiatives in the semi-conductor sector and its allegations that this should have been much earlier, Chidambaram said, "We are talking about a 12-year government".
"We are talking about a government which has been in office for 12 years and that government admits that manufacturing is stuck at 15 per cent," he said.
"I want specific steps on how manufacturing can be raised from 15 per cent of the GDP to a higher percentage... I don't care whether you do it in this manufacturing sector or that manufacturing sector, but manufacturing, no country has become prosperous and affluent without increasing its share of manufacturing to a reasonable level. But no country has become affluent with a manufacturing at 15 per cent," he added.
