S&P growth forecast is a result of UPA's corruption: BJP
Standard and Poor's lowering India's GDP forecast to 5.5 per cent is a consequence of the "corruption, policy paralysis and misgovernance" in the UPA government, BJP said on Monday.delhi Updated: Sep 24, 2012 21:01 IST
Standard and Poor's lowering India's GDP forecast to 5.5 per cent is a consequence of the "corruption, policy paralysis and misgovernance" in the UPA government, BJP said on Monday.
"This cut in India's GDP forecast by Standard and Poors is a result of the misgovernance by the UPA government. This is not good news...Foreign investors will be further discouraged while Indian workers will be adversely affected and their income revision is unlikely," BJP spokesperson Tarun Vijay said.
The party said the new ratings only corroborate what domestic indicators like IIP have been pointing out for sometime.
"There is serious slowdown in investment by corporates, indicating that companies are not willing to invest in the face of a demand slowdown," Vijay said.
The main opposition party alleged that corruption in the Congress-led UPA government and the policy paralysis had gripped the economy which has led to this fall in ratings.
The BJP spokesperson said Prime Minister Manmohan Singh's "sham reforms" (a reference to FDI in multi-brand retail and the diesel price hike) have been answered by the credit rating agency.
"S&P had earlier raised the issue of bifurcation of roles between Sonia Gandhi and Singh. The same holds true even today as seen in policy paralysis and confusion at highest levels. Silence on Coalgate and corruption and an effort to ignore peoples' protests on bad governance shows up...," Vijay said.
He alleged that the UPA government has indulged in wasteful expenditure, thus increasing the fiscal deficit.
The opposition party also insisted that any comparison with China and Japan is misplaced. India has slowed down due to "poor domestic economic management".
"India is not an export driven economy like China," Vijay said.