Union minister Jayant Sinha, son of Yashwant Sinha's son on Thursday said structural reforms were necessary to create a 'New India', a day after his father in an article said the economy was in a downward spiral.
On Thursday, in his article published in The Times of India, Jayant Sinha said: "Several articles have been written recently on the challenges facing the Indian economy. Unfortunately, these articles draw sweeping conclusions from a narrow set of facts, and quite simply miss the fundamental structural reforms that are transforming the economy."
"Moreover, one or two quarters of GDP growth and other macro data are quite inadequate to evaluate the long-term impact of the structural reforms underway," he added.
"GST, demonetisation and digital payments are game-changing efforts to formalise India's economy. Transactions that were taking place outside of the tax net and in the informal sector are now being brought into the formal sector. In the long term, formalisation will mean (a) tax collections go up and more resources are available to the state; (b) friction in the economy is reduced and GDP goes up; and (c) citizens are able to establish credit more effectively as transaction records are digitised, " he said.
He further wrote that the structural reforms unleashed by the Modi government since 2014 constitute the third generation of reforms since the first generation of reforms initiated in 1991 and the second generation in the 1999-2004 NDA government. Unlike the first and second generation of reforms, this third generation of reforms balances a better life for all Indians with the requirements of an advanced, sophisticated 21st century economy.
Yashwant Sinha, in his editorial titled 'I need to speak up now', slammed finance minister Arun Jaitley for making a "mess" of the Indian economy, which he said was headed for a "hard landing" as sector after sector is slipping into distress.
Yashwant Sinha wrote in an article in The Indian Express that the economy was in distress and the shock recall of high-value banknotes last year proved to be an "unmitigated economic disaster". The finance minister in the Atal Bihari Vajpayee government said Prime Minister Narendra Modi "claims he has seen poverty from close quarters (and) his finance minister is working over-time to make sure that all Indians also see it from equally close quarters".