New economic policies improved growth rate but increased inequality, says former Cong minister

CHENNAI:

Former Union Minister Jairam Ramesh said that the economic policies followed by governments since 1991 may have increased the growth rate of country but it has also resulted in the increase in inequality.

“It is one of the question I still could not understand that while on one hand we have high growth rate but the other hand we have inequality on the rise,” said Ramesh while addressing the 107th AGM of Southern India Chamber of Commerce and Industry (SICCI).

He said he is not blaming right wing policies for economic slowdown as since 1991, the economic reforms were a right wing policy.

“The issue is economic management by the present government which has to be blamed. The government is looking at quick-fix solutions rather at structural solutions,” said Ramesh.

Slamming the Narendra Modi government for economic policies, Ramesh said that it requires great skill to screw up economy when oil prices are so low globally. “During our time, the oil price was $140 a barrel and now it is $50 a barrel. But we are still seeing a growth of 5pc,” he said.

He also hit out at Finance minister Arun Jaitley stating that he brought tax reforms in 2017 giving extraordinary powers to tax officials which in the longer run is not good. The mindset is of ‘tax-terrorism,” he said.

He said that the policies of government has become unpredictable. The rhetoric is pro-business but action is not pro-business. There is a deep distrust that all businesses are tax evaders. Our nation is not of tax evaders but a tax minimising nation, he said.