White Paper On The Indian Economy 2024
Source: Department of Economic Affairs
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Overview
- News in Brief
- About White Paper On The Indian Economy 2024
Why in the News?
Union government under the leadership of Narendra Modi, today tabled the White Paper on Indian Economy to compare the economic situation in the country in UPA ear and NDA.
News in Brief
- According to the White Paper on the Economy released said it effectively tackled the challenges left by the policy paralysis of the UPA administration over the past decade, implementing “tough decisions” to steer India towards sustainable high growth.
- The 59-page document, titled White Paper on the Indian Economy highlighted the fragile state of the economy upon the Modi government’s assumption of office in 2014.
- It also criticized the UPA government for impeding economic activities and leaving behind a severely damaged economy in 2014.
- It pointed to issues such as poor public finances, economic mismanagement, financial indiscipline, and widespread corruption during the Congress-led UPA government.
- The paper underscored the magnitude of the responsibility faced by the government in rectifying the economy and reforming governance systems.
What is a White Paper?
- A white paper issued by a government is an authoritative report or guide that informs readers about complex issues, policies, or proposals.
- It typically presents an analysis of a particular problem and outlines the government’s position, strategy, or proposed course of action in response to that problem.
- White papers are often used to explain government policies, initiatives, or legislation to the public, stakeholders, or other branches of government.
- They are expected to provide comprehensive information, evidence-based arguments, and recommendations to support the government’s stance or proposed actions on a specific issue.
- Governments may release white papers on a wide range of topics, including economic policy, healthcare reform, education initiatives, national security strategies, and environmental regulations, among others.
- These documents serve as important tools for transparency, public engagement, and decision-making within the government and society at large.
White paper originated with the British government and many point to the Churchill White Paper of 1922 as the earliest well-known example under this name.
About White Paper On The Indian Economy 2024
The recently released White Paper On The Indian Economy 2024 focuses on the NDA regime from 2003 to 2014 and the NDA government from 2016 to 2024.
Objectives of White Paper On The Indian Economy 2024
- It aims to inform the Members of Parliament and the people of India about the governance, economic, and fiscal crises inherited by this government upon taking office in 2014.
- It tells MPs and the public about the policies, the government implemented to revive the economy and make it strong, meeting the people’s growth goals for both now and in the future.
- Generate a wider, more informed debate on the paramountcy of national interest and fiscal responsibility in matters of governance over political expediency.
- Dedicate ourselves to national development with fresh inspiration, awareness, and determination, as the country presents vast possibilities and opportunities.
Detailed Overview of White Paper On The Indian Economy 2024
The white paper is divided into three parts
- Part 1: The Economy in 2014 – An Inheritance of Loss which discusses the macroeconomic situation during the 10 years of UPA rule.
- Part 2: Pervasive Corruption explains the current status of the various corruption scams of the UPA government.
- Part 3: Rescue of the economy from a state of crisis, despair and paralysis that shows how the NDA turned the economy around.
PART 1: The Economy in 2014 – An Inheritance of Loss
- From FY09 to FY14, six years of high fiscal deficits caused suffering for regular and poorer households.
- Between FY04 and FY14, average annual inflation in the economy was 8.2 per cent.
- Bad Debts in the Banking System: In September 2013, this ratio, including restructured loans, had climbed to 12.3 per cent as compared to the end of NDA government in 2004 was 7.8%.
- Gross advances by public sector banks were only 6.6 lakh crore in March 2004 and in March 2012, it was 39.0 lakh crore.
- External Commercial Borrowings (ECB): During the UPA government’s tenure, ECB rose at a compounded annual growth rate (CAGR) of 21.1 per cent (FY04 to FY14), whereas in the nine years from FY14 to FY23, they have grown at an annual rate of 4.5 per cent.
- Under the UPA government, foreign exchange reserves had declined from around USD 294 billion in July 2011 to around USD 256 billion in August 2013.
PART-2: Pervasive Corruption
- Coal Block Allocation: leading to an estimated loss of `1.86 lakh crore to the exchequer, as estimated by the CAG.
- Commonwealth Games: Charge-sheets were filed in 8 cases that are under trial in courts of Delhi.
- 2G Telecom: This involved a loss of about `1.76 lakh crore of potential revenue to the government, as estimated by the CAG (at the rates paid for 3G spectrum).
- Saradha Chit Fund: This was a ponzi scheme with diversion of funds for personal use, and luring investors with the promise of high returns.
- INX Media Case: This case involved money laundering and irregularities in foreign investment approval for investment into a media company.
PART-3: Rescue of the economy from a state of crisis, despair and paralysis
- From being the 10th largest in 2014, India has surpassed many giants to become the fifth largest economy in 2023.
- Implementation of the Insolvency and Bankruptcy Code (IBC) and measures implemented by the RBI and the government to strengthen the balance sheets.
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