Rashtriya Swayamsevak Sangh (RSS) chief Mohan Bhagwat on Tuesday said that "too much discussion" about the "so-called" economic slowdown is unwarranted as it makes businesses and people wary and leads to decline in economic activity.

Mohan Bhagwat also said that RSS's emphasis on "Swadeshi" meant self-reliance but not economic isolation.

Addressing a gathering of the RSS on the occasion of Vijayadashmi in Nagpur, Mohan Bhagwat also said that disinvestment, if necessary, should be carried out.

Gross Domestic Product (GDP) is a "faulty" parameter to judge economy, Mohan Bhagwat opined, amid concerns about India's GDP growth.

"The country is growing. But the world economy goes through a cycle, and at times it faces some hurdles that slow down the growth. Then it is called a slowdown," Mohan Bhagwat said.

"An economist told me that you call it recession only when you report growth rate of below zero. But we are having a growth rate of around 5 per cent. One can show concern towards it, but there is no need to discuss it," Mohan Bhagwat said.

"Discussion over it leads to creation of an atmosphere, which affects (people's) conduct. Too much discussion about the so-called slowdown would make the people in business and trade believe that the economy is really slowing down and they would become more conservative in their actions. It will eventually slow the growth of our economy further," Mohan Bhagwat said.

"The government has shown sensitivity towards the issue and has taken some steps....We need to trust our government. We have taken so many steps, there will be some positive impact in the coming days," Mohan Bhagwat said.

"We will come out of this (slowdown) phase. The government is taking efforts. We need funds, for which the government is encouraging FDI. Some major industries are being divested. When it (disinvestment) is necessary, there should not be any problem with it. It is a solution," Mohan Bhagwat said.

Saying that there were several "holes" in our economy from where the money drained out, Mohan Bhagwat praised the Narendra Modi government for putting a check on it effectively.

"One needs to remain tough and this government is tough on many fronts. Some among the common people suffer from such tough measures, but they face them for the country... the government needs to ensure that its tough economic measures do not cause suffering to the honest and common man," Mohan Bhagwat said.

Dwelling further on FDI, Mohan Bhagwat conceded that the RSS champions "Swadeshi'' (policy of backing domestic products). "Some think that Swadeshi means breaking ties with the world. It is not at all like that," he contended.

"Countries have been trading and having strong economic relations with each other more often than before. But which countries have such strong relations? The ones which are self-sufficient," Mohan Bhagwat added.

"The things I can make at home, I will not buy it from market. If I have to buy it from outside, I should prefer local market and protect the local makers and their jobs...Having trade relations with other countries on our own terms is called Swadeshi," Mohan Bhagwat said.

"Such self-reliant country can have relations with other countries based on friendship and not on profit or loss. To attain such trust among foreign investors, we need to shift towards a self-reliant economy," Mohan Bhagwat said.

In a barely veiled reference to China, Mohan Bhagwat said that there is one country where if a foreign firm wants to set up a plant, a government nominee has to be appointed to the board of directors and his approval is required for every decision.

"All the major companies in the world have accepted it. Then these companies acquire small companies from India. The name remains the same, but shares are held by some multinational company based in China," Mohan Bhagwat said.

"We need to stay alert about such indirect spread of empire. That is why we need to promote Swadeshi," Mohan Bhagwat said.

Mohan Bhagwat also said that "parameters like GDP are inadequate, faulty and all the economists are saying so".

"We need to have economic structure which is suitable for our country, which generates employment, is eco-friendly, consumes minimum energy and induces good economic behavior ('sad-niti')," Mohan Bhagwat said.