NDA VS UPA-PART 1 (ECONOMY)

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 !

FOOD SECURITY ORDINANCE -WHY SUCH HUE AND CRY?

FOOD SECURITY ORDINANCE is being touted by congress & the paid media as a game changer for congress as it provides food for 80 crore indians living below poverty line.It is being referred to as a congress masterstroke in the run up to the general elections,and that even the opposition parties would not block it as it would be largely perceived as going against the interests of the poor & needy.

The truth is that it is the hype & propaganda created by congress & the paid media flourishing on congress black/scam money! congress political interests are being projected as the mood of the nation & a dire need for  poverty stricken indians by the media desperately trying to influence popular opinion at the behest of the congress.

Now the question arises as to what was the govt doing for the last 10 yrs &what was the need to introduce this now?Fingers are also being pointed at the desperate speed at which an ordinance route was taken -does the govt not have faith in the opposition's conscience & the legislatures that food security as a bill could be passed there? The reality is as shocking & despicable as the congress itself.The reality is that the bill was tailored to suit the congress long term interests & it feared that opposition would demand discussion thereby exposing the unholy motive of the congress & amendments made would amount to sharing the credit for the bill with the opposition which the govt was not ready to.

Anyway first of all let us consider & analyze the reason for opposition to FOOD SECURITY ORDINANCE as being brought up by the govt in a step by step manner: 

1.The ordinance outlines the provision of food for 80 crore indians living below the poverty line but excludes certain classes.Those not among the beneficiaries are people earning Rs 33/day!Will somebody tell me the rationale behind this conclusion?Does the govt look upon them as the 'nouveau riche' of the indian society?Seems to be no doubt about it as from congress leaders quoting Rs 12 & Rs 5 as a requirement for a wholesome diet in mumbai & delhi respectively!

2.The FOOD SECURITY ORDINANCE is a poorly designed package.Only aim of feeding 80 crore people is not enough.There should also be provisions for step by step implementation of procurement to distribution chain & finally express steps should be laid out to ensure that good quality of grains is provided to the needy.The main cause of concern is that there are no clear guidelines laid out as to quality standards of the grain purchased,way of purchasing eg. through tenders,or chosen partners,eligibility of supplier,eligibility of purchaser,modes of payments,motives of buyers & purchasers eg. profit motive may lead to purchase of bad quality of food grains at cheaper price in large quantities while pocketing rest of the allocated money,&,pvt corps are touted to be trusted for distribution which may ensure the making of a huge distribution scam as corps are not here for charity.There are real chances of blackmarketing & food of whatever quality may never reach the needy.

3.Such schemes have been successfully carried out in BJP run states of CHATTISGARH & GUJRAT where 35 kg of grains are provided to those below poverty line (BPL) under the PUBLIC DISTRIBUTION SYSTEM (PDS) @ Re 1/kg whereas the FOOD SECURITY ORDINANCE (FSO) has provisions for only 25 kg of grain for the BPL catagory @ Re 1/kg! That's 10 kg loss to those coming under the BPL catagory as compared to the PDS in the BJP run states!

4. It is being introduced at a time of grave economic crisis furthur compounded by inflation which directly impacts price rise.There has been spiralling price rise of essential commodities almost on a routine basis latest example being onions.It will be a huge burden on an already drained economy due to its sheer magnitude!

5.Populist measures have been notorious for being the progenitors of corruptions & huge scams.They have hardly reached the beneficiaries as almost everything is pocketed by middlemen & only leftovers  reach the needy.

6.Last but not the least,it is being presented more for propaganda than intention by a party which has let down the country & people by failing on almost all fronts be it economy,foreign affairs,defence affairs,or providing a clean,wefare,&,development oriented govt.It is on the latter front where the govt is found wanting as it has presided over rampant corruption & multiple scams each bigger in magnitude than the other.Thus food security is just an election plank for an issueless party which has provided the most corrupt govt in the history of independent or British ruled INDIA.

Thus,it is very sad to conclude that intensions of the govt do not match their rhetoric.The saddest part is that the govt is selling a dream to the masses which it never intends to fulfill just for cheap electoral gains.SHAME ON SUCH GOVT FOR TAKING THE POVERTY STRICKEN FOR A RIDE! LET US ENSURE THAT IS THEIR FINAL JOURNEY TO POWER! JAI HIND!