NEW YORK, NY (TIP): “The BJP-led NDA government created 67 million jobs in less than five years whereas the Congress led UPA created less than 2.7 million jobs between 2004 and 2009. These figures are from the data collected by the federal government controlled agencies and not a figment of imagination”, Rajnath Singh said.
He was speaking on what BJP will do to jumpstart the stalled Indian economy at a function organized by India-America Chamber of Commerce, July 25. Rajnath Singh who was in Washington for three days said he had discussions with the Congressmen and administration officials on the issue of difficulties faced by candidates in H1B and L1 visa to work legally in the US. The GDP cost burden will go up by 0.3 to 0.4 percent due to increase in fees.
“We had lodged our protest against the comprehensive immigration reforms bill and they had raised the issue of patents and compulsory drug license issues. There was only one case under these CDL whereas Indonesia had six cases and Canada four cases,” he added. The US would do well to share its latest technology on green energy with nations such as India so that it can benefit the humanity. Once these inventions are ashared, they would help us more in a very rapid manner, he said.
The BJP government will strengthen the village economy as over 70 percent of the people live in rural areas. We will do our best to stop urbanization and create more jobs in the rural areas as was done in the previous NDA government under the PURA scheme. More than 55 percent of the jobs for youth are in rural areas and there is a need to strengthen this sector. Turning to climate change, the BJP leader said while US that has been preaching, has a carbon emission rate of 20 ton per capita per annum, India has only 1.5 per ton per capita per annum.
The global average is only 4.5 ton per capita per annum. You now decide who is on the right side and who is not. Addressing the members of the India- America Chamber of Commerce in Manhattan, he said India is now facing a serious financial crisis of grave magnitude despite the fact that no one in the global economy can ignore India. The economy of India is not something that makes us feel comfortable or feel proud of.
But India was regarded as third largest economy of the world, he said. When the NDA government led by Atal Behari Vajpayee stepped down in 2004, the fiscal deficit was 2.5 percent and current account deficit was surplus. The revenue deficit was less than one percent. The economy witnessed a boom period during 1999 to 2004 when the country was ruled by the NDA and the slide started in 2004. “The boom that we created lasted till 2008 and then we are now witnessing is one of the worse economic downturns,” Singh said.
“When I mentioned to the Speaker of the House yesterday at Washington that we had a surplus current account when we left power, he was surprised. There was a revenue deficit that went up from 4.5 percent to 6 percent in 2008. The current account of deficit shot to 6 percent. We passed the fiscal responsibility bill in the parliament and hence were able to bring some fiscal discipline.
Inflation is now hovering around 7.7 percent,” he said. The rupee value has depreciated drastically to the US dollar from Rs 37 a dollar in 2008 to Rs 60 in 2013 almost doubling in five years. We thought this would be offset by increase in exports and that also did not happen; it went up by just one percent. It’s very unfortunate that savings that have been the biggest strength of India as it provided capital is now falling at a very rapid rate.
The small businesses tend to grow with the increase in savings and in the absence they take a major hit. Savings drop and growth rates drop and what else to drop. The success of Indian story is over. The success story of India is waiting for the BJP to return to power. The UPA has ruined the economic structure of the country. How will the BJP restore investors’ confidence and fix the broken economy once it comes to power? We will do what we did from 1999 to 2004 and we had a unique development model which is not only a model for India to feel proud of but came as a surprise to the world.
When we handed over the reins of the government to the Congress-led UPA, India’s growth rate was 8 to 9 percent and rate of inflation was around three percent. More than 50 percent of the highways were built during the Vajpayee government and the present Congress dispensation had admitted this in the court. Where had all the developments gone now? The BJP created a success story only to be mauled by the Congress, he added.
We have proved in the BJP-ruled states how we prioritize economic reforms and Gujarat is a shining example of India. The whole world is now talking about Gujarat and foreign governments are keen to study the success story. Take the case of Madhya Pradesh that was considered a sick state with no economic development before the BJP Government took over. Agricultural growth rate has gone up to 19.1 percent in the state as against 4 percent of the federal government.
Madhya Pradesh has replaced as country’s largest supplier of food grains to the central pool. In Chhattisgarh, more than 90 percent of the population is covered under the Public Distribution System and people enjoy social security compared to mass suicide by farmers in the Congress-ruled states. Goa is the only state in India where petrol is cheaper than diesel similar to what we see in the US.
Do we have to prove anything more to assure the people that our first priority will be to fix the problems and take India on a different plane?, he asked. The average GDP of BJP-ruled governments is about 10 percent whereas the nation is only experiencing a growth rate of less than five percent. There are only two models – BJP model for growth and Congress model for destruction, he added. Earlier, Rajiv Khanna, President, India-America Chamber of Commerce welcomed Rajnath Singh and introduced the subject of talk.
He pointed out that Indian economy has been weakening and this had caused considerable doubts in the minds of investors and wanted Singh to speak on how his party, if it came to power would jumpstart the stalled Indian economy. The talk by Rajnath Singh was followed by an interesting Q & AA session. Singh candidly answered the few questions put to him.