The Gujarat Chief Minister, Mr Narendra Modi, took the Centre and the RBI to task for its inability to control inflation.
“I am sorry to note that the Reserve Bank of India has raised interest rates 12 times since March 2010, which has had little or no effect in controlling inflation”, he said in his speech at the National Development Council meet here on Saturday.
He said frequent monetary policy intervention was adversely affecting investor confidence. “FDI flows have also been affected,” he said.
Mr Modi also flayed the Centre for making attempts to “tinker” with the federal structure, particularly in the implementation of development schemes.
Asking the Centre to observe “federal dharma”, he said extreme vigilance and caution had to be exercised to ensure that all the constitutional authorities were allowed to carry out their mandated functions.
On corruption, Mr Modi said there was a “credibility crisis” in the country and the confidence of people in governance had been shaken to the core.