MUMBAI – Indian former prime minister Manmohan Singh criticised his successor Narendra Modi’s government for failing to take advantage of lower commodity prices to propel economic growth and an inconsistent policy towards neighbour Pakistan.
In an interview, speaking to the India Today, he said that the Modi should use India’s improving fiscal balances to raise investment in the economy and raise credit availability to businesses. “In the hands of a purposeful government, this could be an opportunity to step up investment in the economy in a big way,” said Singh, who left office after a 2014 election loss.
“Certainly relations with major powers have improved… But I would say that the real test of foreign policy is in the handling of your neighbours. And here I would say that the Modi government’s handling of Pakistan is inconsistent,” he told the magazine. “It has been one step forward, two steps back.”
Regarded as the architect of economic reforms that led to years of rapid growth, Mr Singh said the government had not been able to take advantage of falling oil and commodity prices that had lowered India’s import bill. Sharp falls in import prices have reduced the trade deficit, raising hopes that it will boost economic activity. But “turbo-charged” growth figures have been criticised by many analysts for giving too flattering a view.
Indian economy posted growth of 7.3 per cent in the quarter through December, but consumer inflation inched up unexpectedly last month and capital goods production, a proxy for investments, fell nearly 20 per cent in December. Indian Finance Minister Arun Jaitley is expected to present a credible budget on Feb 29, people involved in the process say, yet the government might break its budget deficit targets to stimulate demand.
Taking on BJP-led government on the issue of ‘intolerance’, Manmohan Singh questioned the consistent silence on the issues. He said that the prime minister failed to bring reforms on economic front as well as lost the confidence of people keeping quite. Saingh said, “The public in our country expects the prime minister to take the lead in managing public opinion. But he has never spoken; whether it is on the beef problem or whether it is what happened in Muzaffarnagar or elsewhere, he has kept quiet.”
