NEW DELHI: On Saturday, NITI Aayog Vice-Chairman Rajiv Kumar revealed that the country’s Gross Domestic Product(GDP) is higher under Modi government as compared to any other government rule in previous years. Mr. Kumar also added that Modi government in its rule has focused upon sustaining high and inclusionary growth for the future.
“Growth rate under four years of Modi government is still higher than the growth rate of last four years of UPA. This is being managed despite the pernicious legacy of massive NPAs, de-leveraging of commercial bank credit and uncertain global trade environment,” Mr. Kumar said on Twitter.
Besides this, Mr. Kumar also pointed out a report by sub-committee of the National Statistical Commission (NSC) on real sector statistics which says that GDP touched double digits during UPAs rule in 2006-07. Mr. Kumar trying to clear the figures said that the average economic growth rate was 8.87 per cent during UPA’s first term in 2004-09 which during its second term in 2009-14 came down to 7.39 per cent while average growth rate during NDA’s first four years (2014-18) was 7.35 per cent.
“Reference this morning’s news report about NSC sub-committee’s estimates of GDP growth series with a 2011-12 base. These are yet unofficial. However, the following facts are clear: Higher growth rate in 2009-2011 and in previous years was funded by the untenable fiscal deficit and reckless expansion of commercial bank credit which was surely unsustainable. This led to a dramatic economic collapse and growth floundered spectacularly in the last 3 years of UPA II,” Mr. Kumar said.
Mr. Kumar also said that during 1987-89 Rajiv Gandhi period the reported highest ever growth rate was debt-funded which resulted in the collapse of growth in 1990-92 which forced the country to transfer its gold reserves in order to avoid a debt service default, he added.