Market rally driven by UPAs stability, not Modi, says FM

Written by PTI | New Delhi | Updated: Mar 31 2014, 10:06am hrs
A stable UPA government and the steps taken by it were responsible for the market rally and not some kind of hope, finance minister P Chidambaram has said, dismissing suggestions that prospect of a Narendra Modi-led government after polls could be responsible for it.

"The rally is due to the fact of a stable government... not because of some kind of fond hope," he said, hitting out at Narendra Modi, saying he is known to favour "crony capitalism."

"We have contained the fiscal deficit, we have contracted the current account deficits substantially, we have added to our reserves, we have tamed inflation. I only wish that the firm hand on a wheel can continue for some time."

He refuted that the BJP's PM candidate is seen to be growth-oriented.

"Even Modi won't make such an extravagant claim... It's obvious that big business and I am using the word big with capital B. Big business is supporting the BJP but that's because Mr Modi is known to favour crony capitalism."

He added that the hallmark of UPA government is growth.

"We delivered 8.5% growth in the first five years and we have delivered 7.2% growth in the next four years. The NDA record does not even match 7.2%," Chidambaram said.

"In hindsight, what we did in 2009 was right but perhaps, perhaps, we should have pulled back beginning 2011, the pullback started only after I returned to the finance ministry in August 2012 and we have shown result, if we had pulled back a year earlier these results would have been visible even last year," he said when asked whether there is a mistake which he as finance minister thinks the UPA should have never committed.