NDA Government Releases “White Paper” on the Indian Economy to give its Version of the Economy in Ten Years 2014 to 2024 Period as against UPA Rule in 2004-2024 Period

[ABS News Service/09.02.2024]

An Overview

In 2014 when we formed the government, the economy was in a fragile state; public finances were in bad shape; there was economic mismanagement and financial indiscipline, and there was widespread corruption. It was a crisis situation. The responsibility to mend the economy step by step and to put the governance systems in order was enormous. Our government refrained from bringing out a white paper on the poor state of affairs then. That would have given a negative narrative and shaken the confidence of all, including investors. The need of the hour was to give hope to the people, to attract investments, both domestic and global and to build support for the much-needed reforms. The government believed in 'nation-first' and not in scoring political points. Now that we have stabilised the economy and set it on a recovery and growth path, it is necessary to place in the public domain the seemingly insurmountable challenges –left behind as a legacy by the UPA Government. “Every challenge of the pre-2014 era was overcome through our economic management and our governance. These have placed the country on a resolute path of sustained high growth. This has been possible through our right policies, true intentions, and appropriate decisions.”1

The objectives of the "White Paper"

·         First, it seeks to apprise the Hon'ble Members of the Parliament and the people of India, of the nature and extent of governance, economic and fiscal crises that were bequeathed on this government when it assumed office in 2014.

·         Second, it informs the Honourable Members of the Parliament and the public about the policies and measures that our government took to restore the health of the economy and make it vigorous and capable of fulfilling the growth aspirations of the people in the present and in the Amrit Kaal.

·         Third, in doing so, it hopes to generate a wider, more informed debate on the paramountcy of national interest and fiscal responsibility in matters of governance over political expediency.

·         Fourth, “to commit ourselves to national development, with new inspirations, new consciousness, new resolutions, as the country opens up immense possibilities and opportunities.”2

The white paper uses the term "UPA Government" for the government led by Dr. Manmohan Singh elected to office in 2004, and "our Government" for the NDA Government led by Shri Narendra Modi, elected to office in 2014.

In Part 1, the macroeconomic situation of India under the UPA government is discussed, where double-digit inflation, ailing banking sector following excessive lending during the boom phase, and high policy uncertainty marred India's business climate, dented its image and the people's confidence about their future, despite the Vajpayee-led NDA government having handed over a healthy and resilient economy with high growth potential in 2004. The part also discusses the mismanagement and short-sighted handling of the public finances during FY04-FY143. There were numerous scams bringing colossal revenue losses for the exchequer and fiscal and revenue deficits spiralling out of control. In 2014, our government inherited a deeply damaged economy whose foundations had to be rebuilt to enable self-sustaining long-term economic growth.

Part 2 gives current status of the various corruption scams of the UPA government.

Part 3 shows how we turned the economy around, rebuilt the country’s image and rekindled people's hopes and aspirations for a better future. Now, the nation marches ahead with self-confidence and self-belief.

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