Economy transformed under Modi, Cong creating 'mirage' of growth: BJP

Hitting back at Congress over its claim of highest growth rate during UPA rule, the BJP today said India has transformed from "fragile five" economies to "fabulous few" investment destinations under Prime Minister Narendra Modi-led dispensation, adding the previous government was trying to create a 'mirage' of growth.

"Headline figures do not subvert the fact that Congress-led UPA rule was marked by reckless lending, macro-economic instability, high inflation, policy paralysis and highest corruption," BJP spokesperson Sambit Patra said.

Patra was responding to former Finance Minister P Chidambaram's assertion that Congress-led UPA-1 and UPA-2 governments delivered the highest decadal growth since Independence.

Chidambaram made the claim citing the back series data on GDP prepared by the Committee on Real Sector Statistics constituted by the National Statistical Commission.

Countering Chidambaram, Patra alleged he was known for "jugglery" of numbers, and that Congress was trying to create a mirage of growth that never existed when they were in govt.

.."It was funded by the debt leading to disastrous collapse of growth. The growth was fudged by untenable fiscal deficit (FD)," Patra added.

The BJP leader categorically said the new growth data was not official and that it was from a study that is yet to be examined and studied by the government.

Strong growth of NDA 1 under former Prime Minister Atal Bihari Vajpayee fuelled growth of UPA initially but the Congress-led alliance government failed to consolidate these gains, he said.

"Artificially" high unsustainable bank lending and high fiscal deficit led to burden in form of NPAs and unpaid subsidies, he further said.

"Under Prime Minister Modi, Indian economy transformed from fragile five to fabulous few. The formalisation of Indian economy took place because of reforms like GST," he said.

An investment banking firm had labelled Turkey, Brazil, India, South Africa and Indonesia as the "Fragile Five Economies", while global studies now termed India as a favourable investment destination.

Taking on the Congress and Chidambaram, the BJP spokesperson said while inflation was in double digits during the time of UPA government, it remained under control during the current government's regime.

Talking about achievements of Modi government on economic front, Patra said IMF described India as the brightest star which will act as the growth engine of global economy.

"The opposition has the old habit of celebrating their failures of yesteryears when they have nothing to celebrate," he said adding that under Modi India has developed strong macro economic fundamentals.

Fiscal deficit is budgeted at 3.3 per cent for 2018-19, Current Account Deficit was below 2 per cent in 2017-18 and the gross FDI inflow into India was at an all time high of USD 61.9 billion, Patra added.