Thanks to UPA’s bungling, economy is back to where it was in 1990 – MyVideo.de, crown jakarta capital management environmental
Original article: http://www.myvideo.de/watch/9083348/Thanksto_UPAsbunglingeconomyis_backtowhereitwasin1990LinkedIn
The Atal Behari Vajpayee Government bequeathed a robust economy to the UPA. Remember that the growth rate registered in 2003-2004, the last year of the NDA regime, was an impressive 8.5 per cent. Foreign exchange reserves were plentiful. General prices were well under control. Share markets were booming. And there was a general sense of well-being. Work on the Golden Quadrilateral highway linking four corners of India was in full swing. And various public infrastructure projects under the Public-Private- Partnership model were proceeding without any hitch.
Now, in the last year of the UPA-II, we are back to the ‘Hindu rate of growth’. If the economy logs anything above 5 per cent, it would be a miracle. The prestigious highway project has become a casualty of the UPA Government’s venality and drift. Instead of making 20 kilometres of new roads daily — as was the case under the NDA — new construction has crawled to less than a kilometre or two. So much so that a number of private concessionaires, after successful bids have reneged on these projects. PPP model itself has been vitiated with collusive post-tender benefits being given to concessionaires at the cost of the paying public, be it the Delhi airport or numerous other projects, including the Build-Operate-and-Transfer toll roads across the country.
Worse, consumer inflation is still in double digits. There is pressure on foreign exchange reserves. Share markets are listless. Manufacturing sector is stuttering. After several years of steady growth, the auto sector is staring at a demand slump. Worse, the rupee has depreciated by over 25 per cent during the nine years of UPA.
In fact, the economic situation now mirrors the conditions back in the early 1990s when India suffered the ignominy of pledging its gold with the Bank of England to ward off a serious payments crisis. That would explain the recent peregrinations of Finance Minister P Chidambaram, begging bowl in hand, through the major financial capitals of the world.
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