New Delhi: BJP leader and former Finance Minister Yashwant Sinha Wednesday said India's growth story is "not yet over" but alleged "policy paralysis" in the government was not helping the economy grow.
"India's growth story is not over yet. We may have run into some temporary setbacks but only if we can put our act together we will be able to revive India's growth story... I'm not a pessimist despite the slowdown, despite the policy paralysis...I continue to be a very robust optimist," Sinha said here.
He claimed BJP was not coming in the way of progressive economic legislation in the country but said there are problems within the ruling alliance that are preventing them.
"Much is being said about opposition parties, especially BJP, tying the hands of the government and not allowing the government to proceed fast. This is a charge which we reject with all the emphasis attached with it.
"We are not standing in the way of progressive economic legislation. There are problems within the alliance...There are contradictions within the coalition," Singh said.
Addressing an interactive session on "National Economy- Vision for Revival" organised by the BJP Trader and Industry Cell and Young Indians group, Sinha said "we are not standing in the way of any legislation. This is also due to paralysis of decision-making. Important pieces of legislation never achieve finality."
He said there is "complete rejection of action" in the government.
"We'll not just act, do what you want. And, we will also indulge in massive corruption. Now the alchemy is complete. Rejection of action and corruption. It is a deadly combination to kill any germ and most certainly the germ of economic growth. This is where we have to be on our guard," Sinha said.
Sinha said governments must adhere to fiscal fundamentals and learn to spend within their means.
On FDI, he said it should be considered only as an icing on the cake and not be as the main driver for economy. He also called upon the world not to judge India through its single decision of not allowing FDI in a particular sector.
"Don't judge India on a single issue. India is being judged on this single issue. If you permit, you are considered progressive and if you don't you are considered regressive," he said.
Sinha also said that allowing FDI in certain sectors was an "irrelevant" and "meaningless" debate. "If you are an attractive destination by yourself, then you don't have to create any incentive. FDI will flow automatically," he said.
First Published: Thursday, August 30, 2012, 00:10