New Delhi: CPI on Thursday demanded a special session of Parliament to discuss the "critical" economic scenario and stagflation facing the country, saying the government should come out with a strategy on the situation.

"It is a gross default on our part and also the part of the government that we have not been able to discuss this critical situation and stagflation facing our nation," party leader Gurudas Dasgupta said during Zero Hour in Lok Sabha.

Maintaining that the country was facing stagflation, he said the growth rate has slipped by 7 percent, investment and FDI has gone down, lending by banks and foreign investment have declined and there was a steep rise in unemployment.

Stagflation means the economy faces persistently high inflation combined with high unemployment and stagnant demand.

As the people were facing distress and the number of farmers committing suicide was growing, the government should convene a special session on the economic situation facing the country and come out with a strategy to counter it.