UPA fails to take benefit of economic inheritance: Arun Jaitley

Union minister Arun Jaitley said that the Congress-led United Progressive Alliance (UPA) government has failed to take any advantage of economic inheritance provided by the National Democratic Alliance regime (NDA) led by the Bharatiya Janata Party in 2004, with growth already in excess of 8%. It then rode global tailwinds to register high growth but subsequently compromised macroeconomic fundamentals when challenges emerged.

He added that Congress compromised on the fiscal deficit and current account deficit, it allowed inflation to spiral out of control and more so, to create an illusory growth, it compromised India’s banking system through reckless lending. When the UPA moved out of power in 2014, the last three years’ record, even in terms of growth, was less than modest,” he said, pointing to “excessively high” credit growth during UPA-1and for some time in UPA-2, blaming this for the bad-loan crisis that gripped the banking system.

Further, he said that, “when the global economy was in slowdown mode, it was India and India alone which has been the fastest growing economy in the world for the last four years and has consistently overtaken China in the growth rate.”