‘white paper on the Indian economy’ in the Lok Sabha.

Nirmala Sitharaman, the Union Finance Minister, presented a ‘White Paper’ on the Indian economy in the Lok Sabha. This document highlights the government’s efforts to transform India’s economy from a fragile state to being among the top five in the world. The ‘White Paper’ aims to compare the economic performance of 10 years of the Congress-led UPA government with that of 10 years of the BJP-led NDA government. It provides insights into the challenges faced and reforms undertaken during this period¹²³.

When the Narendra Modi government came to power in 2014, the economy was in a precarious situation. Public finances were strained, there was economic mismanagement, financial indiscipline, and widespread corruption. The responsibility to mend the economy step by step and put governance systems in order was enormous. The NDA government refrained from releasing a white paper at that time, as it believed in prioritizing hope, attracting investments, and implementing much-needed reforms. Now, having stabilized the economy and set it on a recovery and growth path, the government aims to share the challenges left behind by the UPA government as a legacy⁴.

What are the key takeaways from this white paper?

Here are the key takeaways from the ‘White Paper on the Indian Economy’ presented by Nirmala Sitharaman in the Lok Sabha:

1. Comparison of UPA and NDA Governments: The paper provides a detailed comparison of the economic performance of the Congress-led UPA government during its tenure and the BJP-led NDA government over the past decade. It highlights the challenges faced and reforms undertaken by each government.

2. Economic Transformation: The ‘White Paper’ emphasizes the government’s efforts to transform India’s economy from a fragile state to being among the top five in the world. It outlines the steps taken to stabilize the economy, attract investments, and implement necessary reforms.

3. Legacy of Challenges: The NDA government inherited an economy facing public finance strain, economic mismanagement, financial indiscipline, and corruption. The paper sheds light on the challenges left behind by the UPA government and how the current government has addressed them.

4. Path Forward: The document serves as a comprehensive statement of responsibility, sharing insights into India’s economic journey. It reaffirms the government’s commitment to the nation’s well-being and development.

In summary, the ‘White Paper’ provides a holistic view of India’s economic trajectory, highlighting achievements, challenges, and the way forward .

What are some reforms undertaken by NDA Government?

Certainly! The NDA (National Democratic Alliance) government has implemented several significant reforms to revitalize the Indian economy and address the challenges inherited from the UPA (United Progressive Alliance) era. Here are some key reforms undertaken by the NDA government:

1. Financial Sector Revitalization: Over the past decade, the NDA government has revitalized the stagnant financial sector. It has overhauled the credit ecosystem within the economy, resulting in significant improvements.

2. Quality Infrastructure and Logistics: The government’s vision of “Nation First” has transformed the quality of India’s infrastructure and logistics ecosystem. This transformation is crucial for attracting investments and expanding India’s presence in global value chains. For instance, the pace of national highway construction increased from 12 km/day in FY15 to 28 km/day in FY23¹.

3. Defense Procurement Focus: Unlike the UPA government, which did not prioritize critical equipment procurement for the defense sector, the NDA government has emphasized defense procurement. Ensuring national security through robust defense capabilities has been a priority.

4. Balancing ‘Prakriti’ and ‘Pragati’: The NDA government understands the importance of balancing environmental sustainability (“Prakriti”) with progress and development (“Pragati”). Reforms have been undertaken to achieve this balance, enhancing the medium-term investment prospects of the economy.

5. Empowerment through Welfare: The philosophy of “sabka sath, sabka vikas” (inclusive development for all) has guided the NDA government. It prioritizes universal access to basic amenities and adopts a participatory, mission-mode approach to realize this vision.

6. Technology-Based Monitoring Mechanisms: The government has introduced technology-based monitoring mechanisms to enhance efficiency and transparency in various sectors.

Additionally, the NDA government has launched flagship schemes such as “Make in India,” “Skill India,” and “Vocal for Local,” which have brought revolutionary changes to the business environment and contributed to the growth of foreign direct investment (FDI) in India¹⁴.