Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
2-min read

'No Need to Get Politically Hot Headed, Growth During UPA Regime Pretty Decent': FinMin Adviser

Defending the revision in GDP growth rates for most of the 10-year UPA rule, Sanjeev Sanyal, Principal Economic Adviser in the Ministry of Finance, said the basis for the revision was use of internationally accepted standards.

PTI

Updated:November 29, 2018, 7:14 PM IST
facebookTwitterskypewhatsapp
'No Need to Get Politically Hot Headed, Growth During UPA Regime Pretty Decent': FinMin Adviser
Picture for Representation.
Loading...

New Delhi: Calling economic growth during the UPA regime as "pretty decent", the government's principal economic adviser Thursday said the real problem in the Congress-led rule was macro instability caused by spiralling inflation, high fiscal deficit, widening CAD and issues with lending.

Defending the revision in GDP growth rates for most of the 10-year UPA rule, Sanjeev Sanyal, Principal Economic Adviser in the Ministry of Finance, said the basis for the revision was use of internationally accepted standards.

"From time to time GDP series is revised. You take a base year and then calculate it. This reflects that the structure of the economy changes from time to time. We have taken 2011-12 as base year and we have calculated and now we have created a back series as well.

"The further you go away from the base period, you can go back to 1950 also, it will give worse reflection of time that is why it was decided, for whatever reason you can ask the CSO, that 2004-05 was a good period from where you can create a back series," he said.

The revised numbers show India's economic growth rate averaged 6.7 per cent during the Congress-led UPA regime as compared to 7.3 per cent under the present government. Previous numbers had put the average growth rate during the 10-year UPA rule at 7.75 per cent.

"One important thing, there is no need to get politically hot headed about the matter for a very simple reason that this is a technical issue using internationally accepted standards," he said.

Replying to criticism heaped by opposition Congress to the move, he said growth rate was not the real problem in the UPA era.

"Even in the new series although the GDP rate is lower than the old series but they are still pretty decent. The real issue for that period was not the growth rate. The real problem was that it was based on macro instability. You had spiralling inflation, you had high fiscal deficits of 5-6 per cent, widening current account deficit (CAD) and serious problems with lending," he said.

Sanyal said for 2012-13, the growth was revised from 4.7 per cent in old series to 5.1 per cent in new series and further to 5.5 per cent. In 2013-14 the growth rate was revised from 5 per cent to 6.9 per cent in new series. "But since the base had increased, it was revised to 6.4 per cent, which shows massive increase in estimations from 5 per cent.

"The largest downward revision in the numbers has been from 10.3 per cent to 8.5 per cent, which is 1.8 per cent. But, if you look at the revision up, in 2013-14 it was 1.4 per cent. It is using the same scale, it is not that only revision downward has happened, in some years it is upwards also. You cannot accept a framework when it suits you and not accept it when you apply backwards," he said.

Sanyal said the new series was accepted by the opposition as an improvement over the old series data in 2015 because the GDP numbers for 2012-13 and 2013-14 fiscal were revised upwards at that time.

Former Finance Minister P Chidambaram had on February 3, 2015 said "the new data successfully establishes the fact that UPA succeeded to revive the economy. The revised GDP data will end misconceived charges that UPA mismanaged the economy".

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months. Use code FREEDOM.

Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 67.80 -4.78
Maruti Suzuki 6,217.00 0.42
Indiabulls Hsg 507.55 -2.66
SBI 279.75 -1.39
Tata Motors 115.50 -6.74
Company Price Change %Gain
Maruti Suzuki 6,226.25 0.44
Yes Bank 67.85 -4.77
Abbott India 9,000.00 0.03
Sterling & Wils 698.00 -3.77
NMDC 86.95 -3.55
Top Gainers
Company Price Change %Gain
Hero Motocorp 2,699.40 1.13
Eicher Motors 16,042.95 0.93
Infosys 798.70 0.75
Kotak Mahindra 1,512.30 0.48
TCS 2,199.00 0.56
Company Price Change %Gain
Hero Motocorp 2,700.60 1.17
Infosys 798.85 0.75
Kotak Mahindra 1,515.40 0.62
HUL 1,851.45 0.56
TCS 2,198.00 0.50
Top Losers
Company Price Change %Gain
Tata Motors 116.50 -5.93
Yes Bank 67.85 -4.71
Tata Steel 345.25 -3.63
BPCL 331.60 -3.11
Bharti Infratel 247.75 -3.05
Company Price Change %Gain
Tata Motors 116.05 -6.26
Yes Bank 67.95 -4.63
Tata Steel 346.65 -3.25
ONGC 121.90 -2.52
Larsen 1,310.45 -2.39

Live TV

Loading...
Countdown To Elections Results
To Assembly Elections 2018 Results