Taking credit for the uptick in domestic economy, former Finance Minister P Chidambaram on Saturday said the 5.7 per cent growth in the first quarter vindicates UPA government’s projection that revival would take place in the beginning of 2014-15 as a result of measures taken in the previous fiscal.
“The GDP data for the first quarter of 2014-15 was released on Friday and the Congress party and I are naturally very pleased. “The 5.7 per cent growth rate vindicates our position that the decline in economic growth had been halted in the middle of 2013-14 as well as our forecast that the upturn will take place in the beginning of 2014-15,” he said in a statement.
Observing that the first quarter is the period between April and June 2014, he said it was the UPA government that was in charge until May 26, 2014.
“We are therefore legitimately entitled to take credit for the revival of the economy, although much more remains to be done,” he said.
Chidambaram exuded confidence that economic growth could exceed 5.5 per cent in the current fiscal if the government of the day follows the policies of UPA government.
“I am glad that the Ministry of Finance has acknowledged that the data was broadly on expected lines. If the NDA government builds on the foundations laid by the UPA government, I am confident that the economy will grow at over 5.5 per cent in 2014-15,” he added.
A number of steps were taken by the UPA government to revive manufacturing (reduction of excise duty), electricity (coal linkages) and mining sectors, he said.
Besides, a number of reforms were undertaken in the financial services sector, he said, adding that these are the lead performing sectors of the economy as per the latest CSO data.