The Hindu : Congress contests BJP claim

Online edition of India's National Newspaper
Friday, Jan 09, 2004

National

National

Congress contests BJP claim

By Our Special Correspondent

NEW DELHI, JAN. 8. The Congress today challenged the Bharatiya Janata Party-led National Democratic Alliance Government's claim of development, stating that the overall investment rate has fallen by four per cent in respect of the Gross Domestic Product during the last five years.

It said the rate of investment had fallen from a peak of 27 per cent of GDP in 1995-96 to around 23 per cent in 2003-04 and that manufacturing investment stood at an 11-year low. "The need has been of investment, but all that the BJP has offered is disinvestment.''

Stating that both public and private sector investments had been on a downward swing in the past five years compared to the years when the Congress was in power, the AICC secretary, Jairam Ramesh, said: "Since this Swadeshi Government is eager for a Videshi certificate, a report of J.M. Morgan Stanely shows that the domestic investment rate is falling."

He said, according to a recent report of the World Bank on the Indian economy, the foreign exchange reserve accumulation of the past few years had been facilitated by the sluggishness of the private sector and interest rates have dived south, primarily because of low investment demand in India.

"Low investment has also led to improved profitability of banks which according to the Reserve Bank of India Deputy Governor were investing more in Government securities than in agriculture and industry," he said, adding that low investment had led to deceleration of employment growth in the organised sector in the past five years.

Asked about the rising Sensex, Mr. Ramesh said that when the Congress had initiated reforms, the BJP opposed the foreign institutional investors and said that there was a need for foreign direct investment. "Today, there are FIIs and no FDI unlike the time of the Congress which maintained a balance between the two."

Printer friendly page
Send this article to Friends by E-Mail

National