Under UPA, India had Higher GDP Growth and also Higher Inflation

Discussion in 'Economy & Infrastructure' started by Singh, Oct 16, 2013.

  1. Singh

    Singh Phat Cat Administrator

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    Modi says under the NDA, India’s economic growth was higher and inflation lower than under the UPA. True or false?

    Claim: India’s gross domestic product (GDP) growth rate has come down from 8.4% during the term of the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) to 4.8% in the Congress-led United Progressive Alliance’s (UPA) regime. The Inflation rate during NDA regime was much lower than that during UPA’s rule.
    Who: BJP’s prime ministerial candidate and Gujarat chief minister Narendra Modi
    When: On 22 September at the annual national convention of Overseas Friends of BJP in Florida via video conferencing.
    Check: He is wrong on growth but right on inflation.
    During the six years the NDA was in power, from 1998-99 to 2003-04, the average GDP growth rate was 6% while during the last nine years of UPA regime, from 2004-05 to 2012-13, GDP grew by 7.9%.
    Wholesale price index based inflation during the NDA term averaged 4.8% while during the UPA regime till 2012-13, it averaged 6.7%
    .
    Source: CSO, RBI Handbook of Statistics
    Claim Check: Narendra Modi on GDP and inflation under the NDA regime - Livemint
     
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  3. NSG_Blackcats

    NSG_Blackcats Member of The Month OCTOBER 2009 Senior Member

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    I heard that speech of Mr. MODI. He told, during the Vajpayee led NDA government the GDP growth was 8.3%. So if we go by averages he was wrong.

    If we go by GDP growth average, UPA has done better. But if we compare both the governments on below mentioned points we can see the difference.
    • Inflation
    • Current Account Deficit
    • Fiscal Deficit
    • Job creation.
    • Level of Corruption
    GDP growth was 4.8% when NDA came to power and when they left office it was 8.4%. (Yes, the average during the tenure was 6%)

    GDP growth was 8.4% when UPA came to power and now it’s 4.8%. (Yes the average growth was 7.9%)

    So when the next government comes to power they have to face a higher CAD, fiscal deficit, high inflation, weak currency, stagnant infrastructure and manufacturing sector. Did the UPA I faced the same when they resumed power in 2004?

    So the next government have to face lot of issues which UPA I did not faced. (But NDA faced in 1998, if you remember we also had US sanction in 1998)
     
    Last edited: Oct 16, 2013
  4. drkrn

    drkrn Senior Member Senior Member

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    very nice points.
    bjp started with growth rate of 4.8 and rose it to 8.4 when congress came into power.but country now has a growth rate of 4.8 after 10 year rule of congress.not to mention inflation is high

    upa enjoyed the good investments of previous government
     
  5. jmj_overlord

    jmj_overlord Regular Member

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    under the upa govt, the environment for investments were more friendly right ? if new govt comes into power and scraps policies like FDI, how well will be the conditions of investments in our country ?
     
  6. sob

    sob Moderator Moderator

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    It is a proven fact that when you liberalise the effects are visible only after 4-5 years. Otherwise without reforms India has continued to chug around 3 to 4 %.

    NDA got the benefit of the early reforms of PVR/MMS which acted as a base for them and they further carried the reforms. The results started to come in toward end of 2008 and continued for most of UPA I. UPA I did not believe in reforms and felt that they were the reason for the downfall of NDA (. Please read on the excellent posts of @thakur_ritesh on this topic). Due to this reason we are staring at sub 4% growth levels.

    To be fair to NDA it would be wrong to calculate the GDP for the period 2004-07 for comparing UPAs performance, because they did not do anything to deserve it.
     
    Last edited by a moderator: May 10, 2015

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