Many people look to make a healthy comparison between NDA and UPA. Here an honest/unbiased assesment/analysis is presented. Economy is the 1st criteria on which this series is dealt with!
There are various parametres to analyse the health of the economy:
1.ANNUAL GDP (GROSS DOMESTIC PRODUCT) GROWTH RATE):
Avg GDP growth during NDA=6%
Avg GDP growth during UPA=7.9%
NDA left behind a strong
GDP= 8.1 %;obviously due to strong economic reforms initiated by it.NDA govt. was guided by well envisioned,growth oriented,policy decisions as regards FDI,IT REVOLUTION,POLICY GUIDELINES FOR TELECOM,PSU DISINVESTMENT etc,which provided impetus for a strong economic growth!
Despite inheriting a strong GDP growth rate,the avg. GDP growth remained at 8.5% during UPA-1! It collapsed from a mighty 9.4% in 2010 to a mere 4.5% in 2013 by almost 50% nulling all economic gains during NDA rule.
2.INFLATIONARY TREND: Moderate inflation is considered good for economic growth!
Inflation during NDA=5%
Inflation during UPA=9% (AVG), touching 11% in 2010-11
Reason behind this strong inflationary trend during UPA rule:
i)High prices of food items & essential commodities.
ii)Contingency of petroleum prices on market forces which saw rapid increase in cost/litre.Removal of subsidy also played its part ! The continuing increase in petroleum prices has adversely affected the economy in the long run!
3.CURRENT A/C DEFICIT : Economy with strong current a/c surplus depends heavily on export revenues with high savings but weak demand Economy showing current a/c deficit has strong imports,low saving rates & high personal consumption rates as % of disposable incomes.
During NDA rule,exports increased resulting in huge cut in deficits bringing indian economy on track thereby,laying strong foundation of growth.The current a/c surplus became 1.5% of GDP,a stunning fig
With UPA at the helm of affairs,the current a/c declined sharply & deficit increased from 0-3.7% of GDP which shows the economic mess,lack of vision & policy paralysis of UPA regime during the last 9 yrs.
4.BALANCE OF TRADE : There are 2 basic concepts,trade surplus (exports>imports) & trade deficit (imports>exports).
During NDA rule,trade deficit lay between 0-2 billion dollars but during UPA misrule,trade deficit has alarmingly multiplied to more than 20 billion dollars ! Implies that our domestic demand is not adequately met with by domestic manufacturer /available resources.Consumer spending boom has led to high oil bills,import of coal for power as still many power plants are suffering from severe shortage of coal despite allocation of coal blocks having been done few years back! No rewards for guessing what factor hit the economy worst! Coal scam of course,the mother of all massive scams which have become synonymous with great UPA misrule !
5.EXTERNAL DEBT : External debt has increased significantly from 2004! Our borrowing has increased which signifies higher investment in development activities but on the other hand,it shows that since 1991 despite massive rise in forex reserves,huge FII (FOREIGN INSTITUTIONAL INVESTORS) & FDI (FOREIGN DIRECT INVESTMENT) inflow & increased domestic savings,the external debt has only increased !
6.INDUSTRIAL PRODUCTION : Industrial production is considered to be the engine of economic growth as it creates jobs!
Industrial growth during NDA rule rose from 4% in 1998 to 9% in 2004 while during UPA rule after touching 20% in Nov 2006, industrial growth has set a new record low of -7.20% in Feb 2009 & now again negative growth rate -0.6% in 2013 ! Absolutely & unbelievably shocking nevertheless, real fig.
This amply proves that the UPA capitalised on the growth oriented policies & the strong economic environment left by NDA in 2004 & reaped rewards! Recession followed by a series of corruption scams in INDIA,policy paralysis,lack of reforms,contributed to steep fall in industrial production during UPA-2.
7.AGRICULTURAL GROWTH : PRIME MINISTER stated the agricultural growth was 3.3% in 11th plan compared to 2.4% of 10th plan! What he omitted was agricultural credit has increased 500 times since 2004,agricultural wages increased by 6.8%,minimum support price has increased & per capita consumption in rural areas has increased!
The PM convieniently missed out on the contribution of agriculture to GDP factor which has dropped from 26% in 1998-99 to 13% in 2012-13!
Furthur,CAG (COMPTROLLER & AUDITOR GENERAL) report on UPA's FARM LOAN WAIVER SCHEME in 2008 clearly points to a misappropriation of Rs 54,000 crores made for waiver of farmers' loans! The scheme was aimed at providing relief to farmers in MAHARASHTRA & ANDHRA PRADESH reporting large farmer suicide rate because of large creditor loans.
Furthur,14 million jobs have been lost in agriculture & 5 million jobs lost in manufacturing sector from 2004-05 to 2009-10!
In general,there has been significant slowdown in agriculture which is/must be a major cause of concern!
8.POVERTY & MALNUTRITION : Poverty rate decreased from 45.3% in 1993-94 to 37.2% in 2004-05 to 29.8% in 2009-10,a fall of 7% on an avg. The CAG Report tabled in parliament shows that except Bihar which saw 82% malnutrition,all other states topping malnutrition list were congress ruled states like ANDHRA=49%,DELHI=50%,RAJASTHAN & HARYANA=43% while GUJARAT malnutrition went down from 70% in 2007 to 38% in 2011 which tells volumes about the efficiency of the NARENDRA MODI led govt. there!Malnutrition in other BJP/NDA ruled states lies MADHYA PRADESH=28%,PUNJAB=33%.BJP ruled UTTARAKHAND (2007-12) saw malnutrition rates drop from 45% to 27%,an amazing recovery!
From the above facts,we understand that NDA govt laid a strong foundation of a flourishing & growth oriented economy through its visionary & far reaching economic policies/reforms & laid down the necessary guidelines to implement them.Revolutionary policies like disinvestment of PSU (PUBLIC SECTOR UNITS),FDI in print media,etc,yielded great returns in form of boosting the economy & making india attractive destination for foreign investors. The real benefits of such measures were reaped by the UPA govt till the unearthing of massive scams with the full connivance of the govt & its ministers at the cost of economy which hugely dented the resources of the exchequer.Growth has been sliding back again to near stagnation of economy.
Though there has been increase in per capita income,consumer spending,personal savings,an in depth examination of social indicators proves that NDA GOVT ruled ably,smartly,& efficiently as compared to UPA GOVTs which have come to represent a picture of gloom,misgovernance,lack of vision & policy paralysis !
There are various parametres to analyse the health of the economy:
1.ANNUAL GDP (GROSS DOMESTIC PRODUCT) GROWTH RATE):
Avg GDP growth during NDA=6%
Avg GDP growth during UPA=7.9%
NDA left behind a strong
GDP= 8.1 %;obviously due to strong economic reforms initiated by it.NDA govt. was guided by well envisioned,growth oriented,policy decisions as regards FDI,IT REVOLUTION,POLICY GUIDELINES FOR TELECOM,PSU DISINVESTMENT etc,which provided impetus for a strong economic growth!
Despite inheriting a strong GDP growth rate,the avg. GDP growth remained at 8.5% during UPA-1! It collapsed from a mighty 9.4% in 2010 to a mere 4.5% in 2013 by almost 50% nulling all economic gains during NDA rule.
2.INFLATIONARY TREND: Moderate inflation is considered good for economic growth!
Inflation during NDA=5%
Inflation during UPA=9% (AVG), touching 11% in 2010-11
Reason behind this strong inflationary trend during UPA rule:
i)High prices of food items & essential commodities.
ii)Contingency of petroleum prices on market forces which saw rapid increase in cost/litre.Removal of subsidy also played its part ! The continuing increase in petroleum prices has adversely affected the economy in the long run!
3.CURRENT A/C DEFICIT : Economy with strong current a/c surplus depends heavily on export revenues with high savings but weak demand Economy showing current a/c deficit has strong imports,low saving rates & high personal consumption rates as % of disposable incomes.
During NDA rule,exports increased resulting in huge cut in deficits bringing indian economy on track thereby,laying strong foundation of growth.The current a/c surplus became 1.5% of GDP,a stunning fig
With UPA at the helm of affairs,the current a/c declined sharply & deficit increased from 0-3.7% of GDP which shows the economic mess,lack of vision & policy paralysis of UPA regime during the last 9 yrs.
4.BALANCE OF TRADE : There are 2 basic concepts,trade surplus (exports>imports) & trade deficit (imports>exports).
During NDA rule,trade deficit lay between 0-2 billion dollars but during UPA misrule,trade deficit has alarmingly multiplied to more than 20 billion dollars ! Implies that our domestic demand is not adequately met with by domestic manufacturer /available resources.Consumer spending boom has led to high oil bills,import of coal for power as still many power plants are suffering from severe shortage of coal despite allocation of coal blocks having been done few years back! No rewards for guessing what factor hit the economy worst! Coal scam of course,the mother of all massive scams which have become synonymous with great UPA misrule !
5.EXTERNAL DEBT : External debt has increased significantly from 2004! Our borrowing has increased which signifies higher investment in development activities but on the other hand,it shows that since 1991 despite massive rise in forex reserves,huge FII (FOREIGN INSTITUTIONAL INVESTORS) & FDI (FOREIGN DIRECT INVESTMENT) inflow & increased domestic savings,the external debt has only increased !
6.INDUSTRIAL PRODUCTION : Industrial production is considered to be the engine of economic growth as it creates jobs!
Industrial growth during NDA rule rose from 4% in 1998 to 9% in 2004 while during UPA rule after touching 20% in Nov 2006, industrial growth has set a new record low of -7.20% in Feb 2009 & now again negative growth rate -0.6% in 2013 ! Absolutely & unbelievably shocking nevertheless, real fig.
This amply proves that the UPA capitalised on the growth oriented policies & the strong economic environment left by NDA in 2004 & reaped rewards! Recession followed by a series of corruption scams in INDIA,policy paralysis,lack of reforms,contributed to steep fall in industrial production during UPA-2.
7.AGRICULTURAL GROWTH : PRIME MINISTER stated the agricultural growth was 3.3% in 11th plan compared to 2.4% of 10th plan! What he omitted was agricultural credit has increased 500 times since 2004,agricultural wages increased by 6.8%,minimum support price has increased & per capita consumption in rural areas has increased!
The PM convieniently missed out on the contribution of agriculture to GDP factor which has dropped from 26% in 1998-99 to 13% in 2012-13!
Furthur,CAG (COMPTROLLER & AUDITOR GENERAL) report on UPA's FARM LOAN WAIVER SCHEME in 2008 clearly points to a misappropriation of Rs 54,000 crores made for waiver of farmers' loans! The scheme was aimed at providing relief to farmers in MAHARASHTRA & ANDHRA PRADESH reporting large farmer suicide rate because of large creditor loans.
Furthur,14 million jobs have been lost in agriculture & 5 million jobs lost in manufacturing sector from 2004-05 to 2009-10!
In general,there has been significant slowdown in agriculture which is/must be a major cause of concern!
8.POVERTY & MALNUTRITION : Poverty rate decreased from 45.3% in 1993-94 to 37.2% in 2004-05 to 29.8% in 2009-10,a fall of 7% on an avg. The CAG Report tabled in parliament shows that except Bihar which saw 82% malnutrition,all other states topping malnutrition list were congress ruled states like ANDHRA=49%,DELHI=50%,RAJASTHAN & HARYANA=43% while GUJARAT malnutrition went down from 70% in 2007 to 38% in 2011 which tells volumes about the efficiency of the NARENDRA MODI led govt. there!Malnutrition in other BJP/NDA ruled states lies MADHYA PRADESH=28%,PUNJAB=33%.BJP ruled UTTARAKHAND (2007-12) saw malnutrition rates drop from 45% to 27%,an amazing recovery!
From the above facts,we understand that NDA govt laid a strong foundation of a flourishing & growth oriented economy through its visionary & far reaching economic policies/reforms & laid down the necessary guidelines to implement them.Revolutionary policies like disinvestment of PSU (PUBLIC SECTOR UNITS),FDI in print media,etc,yielded great returns in form of boosting the economy & making india attractive destination for foreign investors. The real benefits of such measures were reaped by the UPA govt till the unearthing of massive scams with the full connivance of the govt & its ministers at the cost of economy which hugely dented the resources of the exchequer.Growth has been sliding back again to near stagnation of economy.
Though there has been increase in per capita income,consumer spending,personal savings,an in depth examination of social indicators proves that NDA GOVT ruled ably,smartly,& efficiently as compared to UPA GOVTs which have come to represent a picture of gloom,misgovernance,lack of vision & policy paralysis !
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