Scams In UPA Regime Dragged Down GDP Growth Rate To 5.6Pc In 2012-13: BJP

(MENAFN- IANS) New Delhi, Feb 7 (IANS) The BJP has slammed the congress for its primary claim of enabling "7.6 per cent growth", pointing out that this was effectuated by the global economic boom between 2004-08 and conceals the decline to 5.6 per cent in 2012-13, caused by corruption and fiscal mismanagement.

The BJP's factsheet highlights that the average growth rate during the 10 years of UPA (2004-2014) was restricted to 6.8 per cent compared to NDA's 8.4 per cent average (2014-2024).

The UPA relied on reckless borrowing, leading to a ballooning current account deficit and 9.3 per cent inflation. On the other hand, despite the Covid pandemic and the Russia-Ukraine conflict, India's GDP growth for 2024-25 is projected at 6.4 per cent, the highest among major economies, the factsheet states.

It cites the Economic Survey 2024-25 projection of a 6.3-6.8 per cent growth rate for FY25-26, in line with other financial bodies such as the IMF.

The rise in digital transactions from 2.2 billion in 2013-14 to over 208.5 billion in 2024, driven by Digital India, and the opening of 500 million bank accounts under PMJDY showcase inclusive economic growth, according to the BJP factsheet

It also mentions the JAM Trinity (Jan Dhan, Aadhaar, Mobile Network) ensured DBT payments of Rs 27,442.08 crore were made between March 24 and April 17, 2020 (24 days) during peak Covid-19 to 11.42 crore beneficiaries.

It also cites the Economic Survey 2024-25 for showing Financial Inclusion Index rose from 53.9 in 2021 to 64.2 in 2024 as an indicator of growth with equity.

The factsheet states that in "a resurgent India under Prime Minister Narendra Modi-led government, as many as 24.82 crore people have risen out of multidimensional poverty between 2014-15 and 2022-23".

In contrast, the UPA government triggered one of India's worst non-performing asset (NPA) crises in the banking sector. The 'phone-a-loan' scam under UPA led to a surge in bad loans, crippling businesses and financial institutions, the factsheet states.

By 2018, NPAs reached a staggering 11.6 per cent of gross advances, with the root cause traced back to bad lending decisions made between 2008-2014. High-profile defaulters like Nirav Modi, Vijay Mallya, and Mehul Choksi flourished under the lax regulatory environment of the UPA era, it observes.

Besides, the lack of a robust bankruptcy framework left struggling businesses with no structured exit mechanism, which was only brought in in 2016 with Insolvency and Bankruptcy Code (IBC) 2016, the BJP factsheet added.

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