The Narendra Modi-led government on Thursday released a 'White Paper on Indian Economy' which talks about the macroeconomic situation of India under the UPA government, current status of the various corruption scams of the UPA government and a turnaround of the economy under the NDA rule.
Tabled in the Lok Sabha, the Finance Minister, Nirmala Sitharaman, had announced tabling of a 'White Paper' in her pre-poll budget speech on February 1.
“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,” she had said in her budget speech.
A look at NDA Govt's claim of Indian Economy's turnaround:
As soon as NDA government took over in 2014, it says it recognized the urgent need to revampand overhaul systems and processes, to help India advance on the path of developmentwhile also bolstering its macroeconomic foundations.
It adopted a paradigm of transparent and cleangovernance by the executive while simultaneously involving citizens in the process ofpolicymaking and in ensuring its effective implementation.
Constituted an expenditure Reform commission to rationalise and prioritiseGovernemnt expenditures to achive desired development outcomes and make effectiveuse of tax payers' money for nation building.
NDA claims to continue to undertake measures to unearth black money and to discourage recourseto it.
Strengthened the health of the economy and the businesssector. "The foundation for a comprehensive reform process was laid in the initial years ofour government. IMF Article IV Report (2015) mentioned that "India's near-term growthoutlook has improved and the balance of risks is now more favourable, helped byincreased political certainty, several policy actions, improved business confidence, lowercommodity import prices, and reduced external vulnerabilities." Two years later ..
Improved investor climate and creating a favourable outlook forthe economy enabled the Industrialists, who earlier preferred to invest in other countries, to exhilarate a new sense of excitement for investing in India. The NDA govt says India was right back on top in their list ofcountries to invest in.
The White Paper states that the government has undertaken diverse reforms to restore and enhance the potential of the economy by creating a business-friendly environment, improving ease of living, and strengthening the governance systems and processes. This led to a substantial decline in policy uncertainty in India, which had peaked under the UPA Government.
From being the 10th largest in 2014, India has surpassed many giants to becomethe fifth largest economy in 2023 and is slated to become the third largest by 2027as per IMF projections.
In the past ten years, the government says it has revitalised the stagnant financial sector and overhauled the credit ecosystem within the economy, bringing about significant improvements.
Implementation of the Insolvency and Bankruptcy Code (IBC) and measures implemented by the RBI and the government to strengthen the balance sheets of the banking sector (such as the Asset Quality Review, Prompt Corrective Action Framework, merger and recapitalisation of banks) led to a decline in the ratio of the GrossNon-Performing Assets as a proportion of Gross advances to a multi-year low of 3.2 per cent in September 2023.
Government's vision of "Nation First" has transformed the quality of India's infrastructure and logistics ecosystem, which will be key for the country to attract investments and expand its presence in global value chains. "The share of capital expenditure in the total spending by the Central Government excluding interest payments improved to 28 per cent in FY24 (RE) from 16 per cent in FY14," the White Paper reads.
National Defence has received the attention it deserves, the government said. "The procurement of fighter jets and the indigenous development of submarines are justtwo of the examples. Further, multiple measures have been undertaken to streamlineDefence Procurement Procedures for the swift procurement of equipment such asThermal Imaging (TI), Night Sights for the Rocket Launcher (RL)36and Long Range Dual BandInfrared Imaging Search and Track System (IRST). This has prevented ..
The reform measures undertaken by the government have significantly elevated themedium-term investment prospects of the economy, the Paper states. "Both domestic and foreign investorsexpress high optimism regarding India's growth potential, anticipating lucrativeopportunities as the Indian economy expands. The announcement of India's inclusion in JPMorgan's Government Bond Index-Emerging Markets (GBI-EM) is a milestone event,underscoring India's growing significance in the g ..
Source Name: Economic Times