Former Prime Minister, Dr. Manmohan Singh recently speaking on economic slowdown said it was the result of All–round mismanagement by Modi govt. He also opined that this time is not for carrying out political vendetta. Then why Manmohan Singh giving misleading statements.
In September 2013 quarter, Congress led UPA Government delivered an even worst economic growth of 4.8% compared to 5% growth delivered in June 2019 quarter. And point to be noted here is, there was no demonetisation and no GST in 2013 to be blamed for such a disaster.
Manmohan Singh’s congress government had the worst performance in many areas including:
It had diverted money from public investments in infrastructure into politically popular schemes like MGNREGA. Post 2008, while China invested aggressively in creating infrastructure for next 50 to 100 years, India under Congress led UPA Government spent tax payers’ money in MGNREGA.
The NPA crisis seen in NDA tenure was a creation of Congress itself. Raghuram Rajan, former RBI Governor, also had accused UPA for NPA crisis. The unseen hands took bribes not less than 8% to sanction loans to crony capitalists. By the time Congress had handed over the Government to BJP, it had looted the country and its banks totally. and what Modi got was a broken economy.
In 2008,after Global Financial Meltdown, Government of India led by Manmohan singh diverted funds from productive use to speculative purpose.
Sonia Gandhi had said NAC is much to blame for all wrong economic policies of UPA Government and why did great economist Dr. Manmohan Singh was a silent spectator and allowed Sonia Gandhi and her close aides to break the economy.
Coming to policies of present government, Demonetisation definitely decelerated the growth. It affected consumption due to hurdles in obtaining cash. But even after implementation of demonetisation and GST, India had GDP growth around 8%
Dr. Manmohan Singh’s accusation of flawed implementation of GST is completely politically driven. it was the brain child of the Congress. Manmohan Singh had also called the step as favourable for the country. These superficial criticism are of no use. Manmohan Singh had 20 years to solve some fundamental problems in India but he allowed corruption to multiply.
The national debt growing 3% slower as opposed to the Manmohan Singh government from 2009-2014. However, the Modi government is paying 0.3 per cent higher rate of interest. The average fiscal deficit growth rate under PM Modi has been 1.7% lower than what was reported during Manmohan Singh’s tenure. Why doesn’t Manmohan Singh ji comments on these too?
Economies globally are showing signs of acute weakness and Morgan Stanley the world famous investment bankers say that world is heading towards recession in nine months from now.
Escalation in trade tension between the two largest economies — US and China — is the chief factor pushing world economy towards a recession.
Morgan Stanley believes, India, is not close to a recession, but is witnessing a slowdown.
Some sectors like the automobile industry are in critical slow down. In the auto industry Over the last few years, there is a dramatic shift in demand, the rise of shared mobility, higher investments in public transport in all major cities, weak rural demand, are some of the changes. Then there is the policy shift coming in favour of electric vehicles, all of which have weakned the automobile demand. Indian automobile’s golden years came prematurely in our country because there was under-investment in public transport now auto market is saturated..
India’s economy may have declined for three straight quarters but the growth forecast are showing upward trend.
It is very true that PM Modi has a huge task of getting economy back on track now and he is not above criticism. But then when we look at economy, we can’t just look from 16th May 2014, with a fresh new account. PM Modi inherited a poorly managed economic policies of Congress tenure.
Government has already announced booster packages and policy amendments to reverse the effects of economic slowdown. Instead of making empty, false allegations and mud slinging, the expert of Economy Manmohan Singh should introspect his own government policies which destroyed Indian economy.
Dr Sindhu Prashanth