JOIN US2004 to 2014 under Cong-led UPA was a 'lost decade': Sitharaman
Describing the Congress-led UPA rule from 2004 to 2014 as a "lost decade", Union Finance Minister Nirmala Sitharaman on Tuesday claimed the country was pushed 10 years back in terms of growth and no economic reforms took place during that period.
However, economic reforms since 2014 under Prime Minister Narendra Modi's government have helped build confidence of people in the economy, she said. Addressing a seminar of intellectuals at a hotel in Chhattisgarh's capital Raipur, the Union minister said the confidence of retail investors in the stock market is growing and they are investing in shares.
“The opposition has alleged that Modi ji's government has no understanding of economic reforms. They used to comment that the economy should have been revived by consulting experts. "They said see how it was during the government of (former prime minister) Dr Manmohan Singh and that advise of experts like (ex-RBI governor) Raghuram Rajan (should have been taken)," she said.
“You know what happened during those 10 years (of UPA rule from 2004-14)? Banks were hit hard. Their crony relatives borrowed loans. After the Modi government came to power (in mid-2014), the (PSU) banks were recapitalized gradually and it was shown how professional institutions can be run," she said.
“Now public sector banks are earning profit. We removed the burden of NPAs from them and put it (bad loans) in NARCL (National Asset Reconstruction Company Ltd),” Sitharaman said. “But despite being experts, no economic reforms were up taken in those ten years (of UPA rule)… India was pushed behind 10 years in terms of economy during that period. Therefore, I call it a lost decade as ten years were completely lost and nothing good had happened," she said. The Finance Minister claimed the Congress-led UPA left behind an economy which was in bad shape.
“If a white paper was issued in 2014, the truth of whatever they had hidden in the budget on the issue of economy during their tenure would have come to light. "They had left the economy in such a serious condition that it was being repaired for the last seven years... now people's confidence in the economy has grown. Market is its indicator," she added. The Union minister said several reforms were taken in the interest of businesspersons, traders and common people under the Modi government.
“Many people used to say about our stock market that it was unrealistic since 2020. There were several such allegations but I didn't pay attention to their arguments because those who invest money and do trading in the stock market cannot be so unconnected. "If there is no (positive) sentiment in the economy, you do whatever, its impact will not be visible in the stock market," Sitharaman said. She said nobody is giving credit to the government for positive sentiment prevailing in the stock market, which has hit all-time highs after crashing in the early weeks of the pandemic last year.
“In 2019, when there was no coronavirus pandemic, the discussion was about sentiment and now even after the pandemic, when market sentiment is good nobody gives you credit,” she said. After March 2020, investment in the stock market (directly in shares) by retail investors, who used to put money in mutual funds, has increased manifold and 9-10 lakh demat accounts were being opened every month, Sitharaman added.
The confidence in the economy has grown and the country has also been attracting foreign investment, she said. Former Chief Minister Raman Singh and other BJP leaders were also present at the event which was held as part of the party's 'Sewa Aur Samarpan' abhiyan being observed from September 17 to October 7. Earlier in the day, the Union finance minister visited the sub-health centre at Bhatagaon in Raipur to take stock of Covid-19 vaccination drive. Sitharaman also attended a water conservation programme in Telibandha Talab marine drive and visited a blood donation camp in Town Hall, a party leader said.
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