PM Modi placed Indian economy on fast-track

Finance Minister Nirmala Sitaraman tabled a White Paper in Parliament on the state of Indian economy prior to 2014 during the Congress-led UPA rule.

The UPA government helmed by the then Prime Minister Manmohan Singh had handed down a deeply strained economy in 2014 to the BJP-led NDA government, which marked by structural paralysis in finance, economy and governance spheres. Undue political interference in the decision-making process of the government was the main cause. As a result, the people of India suffered hardships under the UPA rule. Inflation hovered over 10% between 2009 and 2014. In 2009, it surged to 12.4 per cent. Spiralling prices made living conditions hard for the people.

In contrast, the previous Vajpayee government amid global economy boom in 2002-2007 registered high growth and low inflation rates, which were seen during the first term of UPA i.e., 2004-09. But, a good opportunity for further growth was not made use of, with the result that the UPA second term saw growth rates subside due to malfunction of policies and the Union government inaction. Inflation went beyond control.

Business and Investment climate soured between 2004 to 2014, denting the image of India and putting off global investors. In the case of public sector banks, the gross NPA, which was brought down by the earlier Vajpayee government to 7.8% from 16%, rose by 12.3%. Blame it on the political interferences in the banking system. Nearly Rs 4 lakh crore problem loans were not recognised for provisioning and a large number of bad loans had been given between 2006 and 2008.

The country is still paying a price due to misuse of the system and corruption by the UPA government. The NDA government had to try hard to usher in an investment-friendly environment in the country. CAG flagged that the coal blocks allotment caused Rs 1.86 lakh crore loss to the exchequer and the Supreme Court cancelled 204 allotments of coal allotments made by the UPA. As many as 47 cases were filed and 10 cases are still under investigation. Apart from this, 8 cases were filed in the “Commonwealth Games Scam“ and Congress leader Suresh Kalmadi was arrested. The “ 2G Telecom Scam“ caused Rs 1.76 lack crore loss to the nation and this case is in the Appellate Court. There were several other scams such as Sarada Chit Funds, INX Media, Adarsh Housing, Augusta Westland and so on during 2004-2014. Everyone accepts that there was no specific corruption charge against the then PM Manmohan Singh, as the Gandhi pariwar including Vadra was calling the shots. Narendra Modi upon his ascent to PM office in 2014 effected structural reforms to put the economy on track, while initiative demonetization-like measures to curb fake and counterfeit currency in the economy. He brought in GST for transparent indirect tax system, banking mergers, relaxations to NBFCs for funds infusion, special measures for renewal of automobile and textile Industries and so on during the last 9 years, despite unforeseen uncertainties due to COVID 19, which wrecked economies worldwide and pushed many into recession. Flexibility and adaptability has been the hallmark of his governance.

The Narendra Modi government came up with a spectacular Rs 20 lakh crore “Atmanirbar Bharat” to revive the economy in all sectors, and ameliorate the conditions of the downtrodden segments, too. As a result, inflation was brought under control and economic growth soared to record levels globally. During the rejuvenation programme, the government weathered many a crisis like global inflation, European economy crisis, Brexit, Greece crisis, volatile oil prices, Russia-Ukraine war, which aggravated supply chain disruptions around the world. While major economies have been registering a tepid growth, India emerged the fastest growing economy, by successfully controlling COVID 19 and helping several countries with timely vaccination. Bharat has become a hope for the rest of the world to steer the ship of the global economy through the troubled waters of recession, pandemic and wars.

Under Modi’s stewardship, India recovered and registered a real GDP growth rate of 7.3% and GDP at current prices touched Rs 296.58 lakh crore for 2023- 24. Our country was the 10th world’s largest economy in 2014 with $2 trillion dollar size. But, after structural reforms and timely decisions with effective policies by the NDA government, India now ranks as the 5th largest economy in the world with its GDP rising to $3.7 trillion. It is on a fast track to achieve $5 trillion economy and become the 3rd largest economy by 2027-28.

Prime Minister Narendra Modi paid equal attention to social security for last nine and a half years to reach the Central welfare schemes to the poor with the scheme of ‘Antyodaya.’ Farmers are benefiting from PM Kisan Samman Nidhi scheme which pays Rs 6,000 per annum in three equal installments towards crop investment assistance. Since 2019, an amount of Rs 2.6 lack crore was disbursed to 11 crore families in the country. The Modi government spends around Rs 1.64 lakh crore annually, paying fertilizer subsidy of Rs 2,000 per bag of fertilizers.

Since COVOD 19 lockdown of April 2020, the Union government has been providing 5 Kg free rice to 80 crore individuals of the BPL families under ‘Gareeb Kalyan Anna Yojana.’ It is estimated to have cost the government around Rs 4.5 lakh crore so far. The scheme has been extended for another five years and along with continuation of existing subsidy ration through PDS as per the National Food Security Act.

Not just these, achieving about 98% ODF through Swachh Bharat, more than 3 crore houses were sanctioned for the poor under PMAY and 2 crore new hoses are targeted in the latest budget. In addition to this, PM Modi announced Jal Jeevan Mission for safe tap drinking water to every house in rural India with Rs 3.75 lakh crore assistance as Centre’s 50 per cent share in the expenditure. Almost 75% of the target has been reached till now. Further, nearly 11 crore eligible families in the country consists of 50 crore people are availing health insurance for Rs 5 lakh under ‘Ayushman Bharat.’ The government transferred Rs 38 lakh crore for last 9.5 years into 50 crore Jandhan accounts under various schemes, in which women beneficiaries are significantly higher as part of Narishakti.

Finance Minister Nirmala Sitharaman has effectively exposed the inadequacies and failures of the UPA government by bringing out the White Paper to put facts before the nation, to make people understand how Prime Minister Narendra Modi always keeps “Janata Janardan” top on the agenda of welfare programmes. (Writer is AP BJP Chief Spokesperson)