As the economy recorded the slowest growth in nine years, Gujarat Chief Minister Narendra Modi today attacked the Centre for an alleged state of “policy paralysis” and said the it had “no inkling” of the upcoming problem.
“The Prime Minister (Manmohan Singh) had boasted of seven percent growth at the Pravasi Bhartiya Divas function in Jaipur a few months back. He reiterated the same in the Rajya Sabha in March,” he said.
“But the government of India did not have any inkling of the upcoming problems. It only got to know yesterday how steep the fall was,” Modi told reporters when asked to comment on GDP growth slipping to 6.5 percent in 2011-12, the worst in nine years.
He also attacked the Centre for what he claimed was a state of “policy paralysis” as 20 sectors of the economy were badly hit for “lack of direction” from the government.
Union Minister for Planning Ashwani Kumar dismissed Modi’s charge of policy paralysis but admitted coalition compulsions had held up second generation reforms.
“As far as the charge of policy paralysis is concerned, I don’t think it is correct,” Kumar said.
“The compulsion of coalition politics has delayed second generation economic reforms. I think the country needs to take bold decisions because good economy is good politics,” he said.
Modi said the effects of slow growth rate would be felt over a long period.
“There is a fall in the GDP. The rupee has weakened. Inflation is on the rise. These are the three indicators that show that the entire economy is in a shambles,” Modi said.
(curtsey : first post)
Rupesh Yatesh Dalal
Head Research Department