Finance Minister Nirmala Sitharaman presented a “white paper” on the Indian economy in Parliament on Thursday (February 8).
The document by the Ministry of Finance, essentially compares the 10-year record of economic governance under the Congress-led UPA governments (between 2004-05 and 2013-14) with the 10-year record of the BJP-led NDA governments (between 2014-15 and 2023-24).
When the NDA government assumed office in 2014, the Indian economy was in a fragile state. Public finances were in bad shape, and there was widespread corruption. This government inherited a “deeply damaged” economy from the UPA government.
This White Paper on the Indian economy is a comprehensive document that sheds light on various aspects. Let’s explore its three parts:
Part 1: The Economy in 2014 - An Inheritance of Loss:
This section delves into the macroeconomic situation during the Congress-led UPA government. Challenges faced during the UPA era included:
Double-digit inflation.
A distressed banking sector burdened by excessive lending during economic booms.
Policy uncertainty impacting India’s business climate.
These factors adversely impacted India's business climate and dented the country's image and the people's confidence about their future. Despite the healthy economy handed over by the Vajpayee-led NDA government in 2004, the UPA government faced mismanagement and fiscal challenges.
Part 2: Pervasive Corruption:
This part discusses various corruption scandals during the UPA government’s tenure. Scams like Coal block allocation, Commonwealth Games, 2G Telecom, and Aircel-Maxis are analyzed.
Part 3: Rescue of the Economy:
Focuses on how the Modi-led NDA government turned the economy around.
Reforms ushered in by the current government transformed India from the ‘Fragile Five’ to the ‘Top Five’ globally.
The economy became more resilient despite a challenging global environment.
Unlike its predecessor, the NDA government made tough decisions to place India on the path of sustainable high growth. It invested in the foundations of the economy while building a sturdy superstructure.
Over the last decade, the NDA government successfully overcame challenges left behind by the previous government. The journey is far from over. The goal is to make India a developed nation by 2047.
The White Paper emphasizes that there are still “miles to go and mountains to scale” in this endeavor. In summary, the NDA government has navigated economic challenges, implemented reforms, and worked toward India’s progress.
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