The Bharatiya Janata Party (BJP) national executive on Sunday passed a resolution on economic issues that said increased capital spending in infrastructure development and more credit for agriculture and small industries have spurred India's growth during the two years of the Narendra Modi government.
It said that "a qualitative change in the tax system is expected through the introduction of the goods and services tax (GST), which has been pending due to obstructionist politics of the Congress and few other parties."
The resolution said the government has cleared 42 stalled projects worth Rs 1.15 lakh crore since February 2015, which activated the idle investments locked in these projects. "This has also begun yielding results in 2015-16. That is why despite slower growth in investments, GDP has grown. Further unlocking of stalled projects will accentuate the GDP growth in future."
The resolution lauded the Modi government's perfect blend of welfare and growth measures, and for pulling the country out of the economic rut that it found itself in during the past two years of the Congress-led UPA government. It said the two years of the government, inspired by the philosophy of Antyodaya - welfare of the poorest - has taken several steps for the empowerment of the marginalised and for the upliftment of their socio-economic progress.
It said the government's efforts have spurred economic activity and improved investor confidence. The resolution added that investments in infrastructure, increased credit to agriculture and small industries have improved domestic growth and domestic consumption. Indian consumer spending increased from 6.2 per cent in 2014-15 to 7.2 per cent in 2015-16, the resolution noted.
It said the agricultural sector posted 2.3 per cent growth in the last quarter of 2015-16 and 1.2 per cent for the whole of 2015-16 against a negative growth of 0.2 per cent in 2014-15. Industry posted a growth of 7.4 per cent in 2015-16 against 5.9 per cent in 2014-15, the resolution stated. Core sector growth during April 2016 was a robust 8.5 per cent against 0.2 per cent contraction in April 2015.
It credited the government for keeping inflation at reasonable levels, passage of the Bankruptcy Code, increased transparency and corruption-free government. Improved ease of doing business has attracted foreign direct investments inflow of around $55 billion in 2015-16 against $41 billion in 2014-15 and $36 billion in 2013-14. Foreign reserves have crossed $360 billion. This, the resolution said, has helped in initiatives such as Startup India and Stand Up India.
The resolution said India was the bright spark in a world witnessing declining growth. It said there is a decline in the role played by global trade in pushing growth. "For the first time in the past 25 years, China's GDP growth slowed down to 6.9 per cent in 2015. In contrast, the Indian economy has been posting higher growth and has emerged as the fastest growing economy of the world," the resolution said.
The resolution criticised UPA policies, particularly its support to crony capitalists and putting public sector banks in poor shape.
