As the economy recorded the slowest growth in nine years,Gujarat Chief Minister Narendra Modi on Friday 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 7 per cent growth at the Pravasi Bhartiya Divas function in Jaipur a few months ago. He reiterated the same in the Rajya Sabha in March, he said.
But the government did not have any inkling of the upcoming problems. It only got to know yesterday how steep the fall was, Modi said when asked to comment on GDP growth slipping to 6.5 per cent 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.
There is complete paralysis and the entire nation is concerned about it, Modi alleged.
Modi said there were 20 sectors which required bold policy decisions but did not elaborate.
There are 20 sectors which need policy interventions. For some sectors,policy announcements are made but there is no Cabinet approval or else there is no policy paralysis. Due to such things,development gets stuck, he said.