Economic Growth Higher Under Current Government, Says Niti Aayog Boss

Economic Growth Higher Under Current Government, Says Niti Aayog Boss

All three have suffered under the government of Shri Narendra Modi.

The government's clarification - along with a blog by minister Arun Jaitley that credited global tail winds and the legacy of the Atal Bihari Vajpayee government for the growth in the initial UPA years - was issued on a day the Congress claimed that "truth can not be suppressed forever".

In the blog Growth During the UPA - Its Quality and Circumstances, Jaitley said the numbers issued are yet to be approved, as he questioned the secular decline in the period 1994-95 to 2002-03 and the rise thereafter under the recast GDP.

Reacting to the Congress leader's claim, BJP spokesperson Sambit Patra said the data referred to by him was not official and had not yet been accepted by the government.

"A lot of confusion was sown and the Modi government added to the confusion by changing the base year from 2004-05 to 2011-12", the Congress leader added.

According to the back series data, the former Finance Minister said, UPA 1 had an average GDP growth rate of 8.87% at factor cost as against NDA 1's 5.69%. "For the sake of the country, we wish the government well in its fifth year".

The GDP back series data released last week is not a final estimate, Union Minister Arun Jaitley said on Sunday, countering efforts by Congress to use the numbers to defend its management of India's economy when it was in power. "The numbers prove the dictum that truth can not be suppressed forever and truth has a way of emerging amidst a torrent of lies and distortions", he said.

However, it must be noted that the economic survey for 2006-07 - the year that the Manmohan Singh government is supposed to have scaled the summit of its ambition of double-digit growth - had said: "Starting with a rate of 3.98 per cent, the inflation rate in 2006-07 has been on a general upward trend with intermittent decreases. Dr Arvind Subramanian called them the "boom years", the former Minister said.

"When the UPA government demitted office, economic growth had recovered to 6.39 per cent (at market prices) in 2013-14".

Fiscal deficit is budgeted at 3.3 per cent for 2018-19, Current Account Deficit was below 2 per cent in 2017-18 and the gross FDI inflow into India was at an all time high of United States dollars 61.9 billion, Patra added.

Chidambaram said there were other reasons why the economy stumbled during Modi government, including stagnation in investment. He added that in the past four years strong foundations have been laid for "sustained high and inclusionary growth" for the future. "Rupee's exchange rate went into a free fall during May-August 2013, declining nearly 25 per cent in 4 months", Kumar said in another tweet. "However, post 2014, when the global economy was in slowdown mode, it was India and India alone which has been the fastestgrowing economy in the world for the last four years and has consistently overtaken China in the growth rate", he wrote. At that level of investment (GFCF), it is not possible to achieve higher growth rates. "Rupee's exchange rate went into a free fall during May-August 2013, declining nearly 25 per cent in 4 months", he tweeted. He also said the growth was accompanied by weak macros manifested in high fiscal and current account deficits, and high inflation.

Elaborating on the charge of "tax terrorism", Mr. Chidambaram said that despite a majority in the Lok Sabha, the Modi government did not amend the retrospective clause in the Income Tax Act (also known as the Vodafone amendment).