CHENNAI: Former Union Minister Jairam Ramesh on Thursday said that the economic policies followed by governments since 1991 may have increased the country’s growth rate, but it has also resulted in an increase in inequality.
“It is one of the questions I still could not understand that while on the one hand we have a high growth rate, but on 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 was 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,” he said.
Slamming the Narendra Modi government for economic policies, he said 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 five per cent”, he said.
He also hit out at Finance minister Arun Jaitley stating that he brought in tax reforms in 2017 giving extraordinary powers to tax officials which in the long run is not good. The mindset is of ‘tax-terrorism’,” he said.
He said the policies of goernment have 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.
He said the Goods and GST is a good idea, but he still could not understand why a developed nation like United States still did not implement it. He said in 2012, the then Gujarat Chief minister refused to back it, but now as Prime Minister, he is implementing it. Ramesh said there is a monopoly of wisdom and knowledge and the government is only speaking and not listening.
“Mann ki Baat’ is now only one way. During the times of Mahatma Gandhi and Jawahar Lal Nehru, it was two-way,” he said.