The country had achieved a better growth rate during the earlier Congress rule, former finance minister and senior party leader Manmohan Singh said.
Congress transformed the Indian economy between 1980 and 1997 and set it on a growth path, Singh said while talking on 'How India can be an economic super power' at the Gujarat Chamber of Commerce and Industry in Ahmedabad.
In the last three years of the Eighth Plan, the growth rate went up to 7.5 per cent. "Had that trend continued, we should have had a growth rate closer to 7.5 per cent during the Ninth Plan period (1997-2002). Instead, during these years of non-Congress government and BJP rule, the growth rate fell to 5.5 per cent, which was even lower than that during the Sixth Plan period (1980-1985)," he said.
In a year after the Ninth Plan (2002-2003), the growth rate fell further to 4.5 per cent and in that year alone the country has lost more than Rs 1,70,000 crore (Rs 1,700 billion) of output, Singh said.
"Taking into account the 8 per cent economic growth in the current financial year, the average growth during the BJP rule in the last five years is around 5 per cent, while the average economic growth rate during the Congress regime in 1993-1996 was 7.5 per cent," said Singh.
"There are many opportunities for India's development and the environment is not hostile to India. Public finances of the Centre as well as the states should be improved. We should also increase power generation," said Singh.
"To achieve a growth rate of up to 10 per cent, annual power generation must also grow around 8 per cent to 10 per cent. We need to improve our railway and port services by making greater investment in them. Greater investment in education and health is also needed," Singh said.
Singh also demanded more investment in science and technology which is only 0.9 per cent of the GDP at present.
"The social safety net must be extended further to cover all those hurt by the economic reforms, the unorganised sector and the aged," Singh said.
Singh said reduction in bank rates had pushed pensioners and others who depend on their deposits to great hardships.
On population growth, Singh said, "Population growth needs to be controlled. But this should be done through education and persuasion. Help of religious leaders should be taken for this."
Shreyas Pandya, president, GCCI, said, "The country has started bearing fruits of the new economic policies initiated by Manmohan Singh in 1991 and the economic reforms have gathered momentum during the last five years."
