Nation

Crown of Thorns: A Legacy from Congress to PM Modi 

By Sapna , August 1st, : The decade of 2004-2014 stands as paradigm of corruption in Indian politics. Multi billion scams like 2G, Coal allocation, Augusta etc. under UPA-1 

& UPA -2 shook the nation.

Corrupt politicians, bureaucrats & industrialists joined hands in unscrupulously plundering the National wealth. Bank loans (NPA) was biggest scam in UPA rule. Bank NPA was 64000 crore in 2009 which increased to 4.5 lac crore at the end of UPA regime. Loans were given without proper Assessment of credit worthiness to several entities.

The enormity of impact of scams on Indian economy can be correctly evaluated only if we take into account as to how the scam money was multiplied manifold by investments in Real estate, stock & gold. Huge investment of black money in Benami properties lead to Real estate price inflation which adversely affected Manufacturing, Business, Agriculture & Housing sectors, thereby destroying all engines of economy.

With two major factors of production- Land & Capital being concentrated in the hands of few & blocked as black money & benami properties, economic growth stagnated especially in manufacturing sector.

Strong performance of manufacturing & Agriculture sector contributed to GDP rate of 8.2% in 2004 which fell down to 6.9% at the end of UPA-2. Industrial growth of 5.4% under NDA-1 declined to 4.2% at the end of UPA rule.

Under UPA, there was cash driven, asset Inflation led growth which failed to create employment. While great wealth was amassed by the corrupt politicians, talented youth was jobless & frustrated.

Inflation in real estate caused sharp rise in price & rent of commercial spaces which affected the profitability of business sector. Small traders & Shopkeepers were worst hit & many had to shut down their business. Because of high land prices, cost of construction of schools, hospitals, hotels etc became very high, making them very expensive, a huge burden on middle class. Own house became an almost impossible dream for middle class whose major share of income is spent on rent/ EMI of housing loans.

Acres of agricultural land surrounding cities were bought for investment as Benami properties which lead to decline in agricultural production and rise in inflation of food items.

While capital investment of scam money ensured huge returns to politicians, it became increasingly difficult for common man to make ends meet due to declining incomes and rising inflation of essential goods and services.

Almost empty treasury, rising inflation, policy paralysis and declining GDP was the legacy PM Modi got from renowned economist Dr.Manmohan Singh.

Biggest challenges for Modi Govt. in 2014 were to put Indian economy back on track, control inflation and deal with bank NPAs. Modi Govt, has so far acted proactively to redeem sins of UPA govt. To deal with bank NPAs, amendments have been made to Banking Regulation Act’1949 and a new act “Insolvency and Bankruptcy Act’2016” was enacted to ensure prompt repayment of bank loans and punish defaulters.

The Benami Property Act’2016 aims at choking illegal investment of black money in benami properties. As on June 30,2018 ,1600 benami transactions-involving benami property valued at over 4300 Crore have been attached.

These measures by PM Modi aim at controlling corruption and eradicating black money so that India emerges as strong economic power and fruits of economic growth reach common people. PM Modi is working tirelessly for a corruption free

New India.

Please continue to read more on this in upcoming article(s).

— Sapna, the author is Post Graduate in Commerce, Lawyer & now an Educationist.

— The author can be followed on Twitter  >>  Sapna @sapna_3

News is information about current events. News is provided through many different media: word of mouth, printing, postal systems, broadcasting, electronic communication, and also on the testimony of observers and witnesses to events. It is also used as a platform to manufacture opinion for the population.

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