#224: White Paper on Indian Economy

Notes for #UPSC

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'White Paper' in the parliament today!

What's it? What does this white paper say?

I made notes from it so that you don't have to!

Educate yourself here👇🏼

It is a doc breaking down complex issue presented by the governments, businesses etc.

• No particular guidelines on when/how to issue one

• Purely discretion of govt. to issue one as it deems fit

• Opposition can demand its presentation

• Can also be presented by state govt. in assembly

Interestingly, Modi Govt. has presented 2 white papers in 10 years;

a) First on condition of Railway in 2014

b) Second on state of Economy during UPA Feb 2024

What does this white paper spill?👇🏼

Notes from 'White Paper of Indian Economy'

1. What did UPA Govt. inherit?

• "Inherited healthy economy ready for more reforms, but made it non-performing in 10 years"

• Economic Survey of 2003-04:

"Economy appears in resilient mode in terms of growth, inflation and BoP"

• 2004: When UPA-I took over, economy at 8% growth

2. What did UPA do? (as per white paper)

• Country stood at cusp of emerging as powerful economy, UPA abandoned reforms approach

• 2004-08:Economy grew fast on foundations laid by NDA govt.

• Undermined macroeconomic foundations post 2008 crisis

• Poor Policy Planning = large unspent funds

a) This further crippled effectiveness of govt schemes

b) This led to funds diversion for consumption over public investment

• NPA ratio in Public Sector Banks (PSBs)

- PM Vajpayee era

a) Inherited GNPA ratio: 16.0%

b) Left office w/ GNPA ratio: 7.8%

- UPA

a) Sept 2013: 12.3%*

*white paper claims this number is an underestimate

How?

As per white paper, UPA interfered in commercial lending decisions of PSBs

• "Fundamentally, UPA decade failed to strengthen India's long-term potential by showing no interest in undertaking economic, social & admin reforms"

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Okay CSEWhy,

How did Modi Govt overcome these challenges?

As per white paper, here is your answer:

First, why white paper now?

Why not in 2014?🤔

• "Our govt. refrained to check negative narrative and preserve masses & investor confidence"

Okay, but what did govt. do?

• "Looking back at the last ten years, we can say with humility and satisfaction that we have successfully overcome the challenges left behind by the previous government," it added

Way Forward

• "Miles to go and mountains to scale before we sleep" as the destination is to make India a developed nation by 2047.

• "It is our Kartavya Kaal," it added.

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