I'm hurt by Manmohan Singh's remark, says Nirmala Sitharaman

Finance Minister Nirmala Sitharaman responded to former Prime Minister Manmohan Singh’s criticism of the Modi government’s handling of the economy, saying he will be remembered for bringing India to the “fragile five” and excessive inflation during his era.

She also mentioned recent findings claiming former NSE chairman Chitra Ramkrishna managed the country’s largest stock exchange with the help of a ‘Himalayan Yogi,’ and said that Manmohan Singh was unaware of how the exchange was handled for so long while he was in power.

I admire you greatly (Manmohan Singh). I didn’t expect this from you. And I’m hurt,” Sitharaman remarked, wondering whether he's now talking about the economy for "political reasons." "Punjab's assembly elections are on the way.

She compared data on exports, foreign direct investment, and inflation during the Modi administration to that of Manmohan Singh’s to argue that economic indicators are significantly better now.

He is better remembered as a Prime Minister under whose term inflation remained in double digit for 22 months straight and who saw capital fly out of the country, Sitharaman said.

She also accused individuals criticising the Modi government for its handling of inflation for spreading misinformation about the issue. Because the BJP government takes rapid action to reduce prices of vital products, inflation figures have been substantially lower than under the Congress-led UPA government.

The Reserve Bank of India had on February 10 said inflation based on consumer price index (CPI) is expected to come well below its upper tolerance level, at 4.5 per cent, in the next fiscal year beginning April 2022, helped by fresh crop arrivals, supply-side interventions, as well as prospects of a good monsoon.

The finance minister noted that inflation in developed economies such as the United States and Europe has reached levels not seen in decades, and that India is affected by the global situation as well.

Our government, on the other hand, takes immediate steps to limit price increases, she said, adding that the UPA government was afflicted by “policy paralysis” at the time, with a senior minister like Pranab Mukherjee leading a 33-member Group of Ministers.

She also criticised the methodology of an Oxfam report that indicated that India’s inequality and poverty levels had risen, claiming that it failed to account for the government’s various welfare efforts. According to her, Oxfam’s formula is incorrect, as it should be on a number of factors.

Manmohan Singh launched a stinging attack on the administration on Thursday, saying that the central government’s short-sighted policies have resulted in the economy declining, inflation rising, and unemployment rising.

He remarked before of the Punjab polls on February 20 that the BJP’s nationalism was “false” and was founded on the British doctrine of “divide and rule,” targeting the central government on a variety of problems, including farmers’ agitation, foreign policy, price rises, and unemployment.

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