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BJP slams UPA over failure to boost economic investment

June 13, 2012 - New Delhi

The Bharatiya Janata Party (BJP) on Wednesday took potshots at the Congress-led UPA Government at the Centre for its failure to boost economic investment in the country.

BJP spokesperson Nirmala Sitharaman said the internal fight within the Congress Party was responsible for the slow economic growth, thereby leading to a policy paralysis in the country.

"The economy is in a state of shambles, there is no doubt about that and if you reject S andP (Standard and Poor's) report as foreigners do not understand our system here particularly because S andP had said the division of power between the Prime Minister (Manmohan Singh) and the UPA (United Progressive Alliance) chairperson (Sonia Gandhi) has led to the policy paralysis," said Sitharaman.

" You do not want S andP report, it is fine, but your own chief economic advisor Kaushik Basu only last Friday talking at Exim Banks gathering in Mumbai has said that economic paralysis is because of what is happening here in the country," she added.

The S andP in its report said that the crux of the current political problem for economic liberalisation is the nature of leadership within the central government and not 'obstreperous' allies or an 'unhelpful' opposition.

"Slowing GDP growth and political roadblocks to economic policy making could put India at risk of losing its investment grade rating", the S andP said in its report-'Will India Be The First BRIC Fallen Angel?'

Standard and Poor's, which had lowered India's rating outlook to 'negative' from 'stable' in April, said the Congress Party is divided on economic policies and there is substantial opposition within the party to any serious liberalisation of the economy. he S andP report said, 'paramount political power rests with the leader of the Congress party, Sonia Gandhi, who holds no Cabinet position, while the government is led by an unelected Prime Minister Manmohan Singh, who lacks a political base of his own'.

It said the division of roles between 'a political powerful' Congress President and an 'appointed' Prime Minister 'has weakened the framework for making policy, in our view'.

Citing economic slowdown and political roadblocks to policy-making, rating agency S andP also that warned India could become the first BRIC nation to lose investment-grade rating.


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