'UPA govt wanted RBI as its cheerleader': BJP's Smriti Irani on ex-RBI Governor's memoir

Union minister Smriti Irani

Union minister and BJP leader Smriti Irani on April 16 accused Congress for ‘institutional abuse’ during its rule between 2004 and 2014 after former Reserve Bank of India governor D Subbarao in his soon-to-be released memoir claimed that senior government ministers used to pressurise him to present a ‘rosy picture’ of the Indian economy.

“When the grand old Congress party wanted Reserve Bank as the Government’s Cheerleader to hoodwink people of India…The revelations from former RBI Governor Subbarao’s memoir provide a glaring instance of the institutional abuse perpetrated by the Congress. The misconduct not only endangered our institutions but also underscores Congress’s penchant for deceit over national interest,” the women and child development minister said on X.

When the grand old Congress party wanted Reserve Bank as the Government’s Cheerleader to hoodwink people of India

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The revelations from former RBI Governor Subbarao’s memoir provide a glaring instance of the institutional abuse perpetrated by the…

— Smriti Z Irani (Modi Ka Parivar) (@smritiirani) April 16, 2024

Instead of fostering a robust Indian economy, they chose to mislead our citizens, betraying their aspirations for a prosperous country. No wonder India plummeted into the Fragile Five Economies during the UPA’s decade-long misrule and mismanagement, the minister added.

The former RBI Governor claimed in 'Just A Mercenary?: Notes from My Life and Career' that the finance ministry under Pranab Mukherjee and P Chidambaram used to put pressure on him to ease interest rates and present a better picture to boost sentiments.

"Having been both in the government and in the RBI, I can say with some authority that there is little understanding and sensitivity within the government on the importance of central bank autonomy," he said in the book.

Subbarao also warned the current government against premature celebration of the Indian economy. He emphasised that as India's vast population contributes to its economic size, the country is likely to remain impoverished despite hitting the milestone.

He highlighted India's position as the fifth-largest economy globally, with a GDP of $4 trillion but noted its low per capita income of $2,600, placing it 139th internationally.

Additionally, he emphasised that India is the least affluent among both BRICS and G-20 nations.