White Paper on Indian EconomyUnveiled by Finance Minister Nirmala Sitharaman in Parliament, it shows a clear difference between the economic policies of the previous UPA government and the current NDA administration. It highlights the journey from economic weakness to ranking among the top five global economies.
White Paper on Indian Economy: Key Points to Watch
1. Criticism of UPA era: Economic mismanagement and corruption
- Criticized UPA’s economic mismanagementFiscal indiscipline and corruption during 2004–2014.
- Policy paralysis was highlighted which led to delays in project implementation and missed opportunities for development and innovation.
- The UPA tenure was dubbed the “lost decade” due to neglect of infrastructure and asset creation.
2. NDA’s fiscal prudence and economic rebound
- NDA’s counter-cyclical fiscal policy This is in contrast to the counter-cyclical approach of the UPA that promoted economic stability and resilience.
- Appreciated the fiscal discipline of the NDA to ensure economic recovery without compromising fiscal health amid the COVID-19 pandemic.
- Reduction in fiscal, revenue and primary deficit under the NDA government has been highlighted as an indicator of prudent fiscal management.
3. Quality of expenditure: from populism to investment
- Accused the UPA of prioritizing short-term populist measures over long-term infrastructure development, leading to economic bottlenecks.
- The NDA’s focus on improving the quality of expenditure is highlighted, with a shift towards higher capital expenditure and lower revenue expenditure growth.
4. Structural reforms and macroeconomic strengthening
- The emphasis has been on structural reforms initiated since 2014 to strengthen India’s macroeconomic fundamentals.
- India’s inclusion in JPMorgan’s Government Bond Index-Emerging Markets (GBI-EM) has been cited as evidence of the economy’s growing strength and attractiveness to investors.
5. Dealing with leakage and boosting efficiency
- Acknowledged the NDA government’s efforts to reduce leakages through Direct Benefit Transfer (DBT), citing significant reduction in LPG subsidy leakages.