NDA rule vs UPA rule.
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BY :- SUNIL GUPTA
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Economic Policies by BJP Led NDA Government
•Expanded the process of economic liberalisation
•His government initiated the privatisation of most state
corporations, including the Videsh Sanchar Nigam Ltd.
•His government also began the establishment of special export
processing zones, Information Technology and Industrial Parks
across the country to bolster industrial production and exports.
•His government launched the National Highway Development
Project
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•In 2003, the government launched the Pravasi Bharatiya
Samman (Honouring of Non-Resident Indians) and initiated plans to
establish an Overseas citizenship of India.
•His government also expanded efforts to encourage foreign investment,
especially from Europe and the United States.
•The Vajpayee government improved India's ties with the People's
Republic of China, boosting trade and seeking the resolution of territorial
disputes through dialogue
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BJP STRATEGY
•Accelerated reforms in the agricultural sector - food economy and rural
development programmes targeted.
•Intensification of infrastructure investment, continued reforms in the financial
sector and capital markets, deepening of structural reforms - dismantling
controls constraining economic activity.
•Human development through better educational opportunities and social
security.
•Reduction in non-productive expenditure and rationalisation of subsidies.
•Acceleration of the privatisation process and restructuring of public
enterprises.
•Widening of the tax base and toning up the tax administration.
•Provide social security to the poor.
•Deepen structural reforms and regenerate industrial growth.
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ECONOMIC INDICATORS
1. GDP
2. INFLATION
•REPO RATE, REVERSE REPO RATE & CRR
•FOOD INFLATION
3 WPI & CPI
4. FISCAL DEFICIT
5. CURRENT ACCOUNT DEFICIT
6. FOREX RESERVES
7. EXTERNAL DEBT
8. JOB CREATION
9. SAVINGS RATE
10 EXCHANGE RATE
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YEAR WPI1997-98 4.41998-99 5.91999-00 3.32000-01 7.12001-02 3.62002-03 3.42003-04 5.52004-05 6.52005-06 4.42006-07 6.52007-08 4.82008-09 8
YEAR CPI1999-00 3.42000-01 3.72001-02 4.32002-03 4.12003-04 3.82004-05 3.92005-06 4.22006-07 6.82007-08 6.22008-09 9.1
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Year Petrol Diesel LPG1996 21.13 9.04 119.951997 22.84 10.34 1361998 23.94 9.87 1361999 23.8 9.94 1462000 28.7 16.55 2322001 28.7 17.06 222.25
2002 28.91 18.06 241.22003 32.7 20.73 241.62004 37.84 26.28 281.62005 43.49 30.45 281.62006 44.85 31.25 281.62007 43.52 30.48 281.62008 45.62 32.86 346.32009 44.72 32.92 281.22010 51.43 40.1 345.35
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YEAR
Fiscal Deficit( % of
GDP)
1996-97 4.7
1997-98 5.66
1998-99 6.29
1999-00 5.2
2000-01 5.48
2001-02 6
2002-03 5.73
2003-04 4.34
2004-05 3.88
2005-06 3.96
2006-07 3.32
2007-08 2.54
2008-09 5.99
2009-10 6.46
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YEAREXPORTS( US Bn$)
Imports( US Bn$)
trade deficit( US
Bn$)Invisibles( US Bn$)
CAD( US Bn$) CAD(% OF GDP)
1999-00 37.5 55.4 -17.9 13.7 -4.2 -0.9
2000-01 45.5 57.9 -12.4 9.8 -2.6 -0.6
2001-02 44.7 56.3 -11.6 15 3.4 0.7
2002-03 53.8 64.5 -10.7 17 6.3 1.2
2003-04 66.3 80 -13.7 27.8 14.1 2.3
2004-05 85.2 118.9 -33.7 31.2 -2.5 -0.3
2005-06 105.2 157.1 -51.9 42 -9.9 -1.2
2006-07 128.9 190.7 -61.8 52.2 -9.6 -1
2007-08 166.2 257.6 -91.4 75.7 -15.7 -1.3
2008-09 189 308.5 -119.5 91.6 -27.9 -2.3
2009-10 182.4 300.6 -118.2 80 -38.2 -2.8
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YEAR
FOREX RESERVES(
US Bn$)
1999-00 35.1
2000-01 39.6
2001-02 51
2002-03 71.9
2003-04 106.1
2004-05 135.1
2005-06 145.1
2006-07 191.9
2007-08 299.1
2008-09 241.6
2009-10 252.8
FOREX RESERVES
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YEAREXTERNAL
DEBT( US Bn$)
1999-00 98.3
2000-01 101.3
2001-02 98.8
2002-03 104.9
2003-04 112.7
2004-05 134
2005-06 139.1
2006-07 172.4
2007-08 224.4
2008-09 224.5
2009-10 260.9
EXTERNAL DEBT
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YEAR GDS GCFSAVINGS-INVESTMENT
GAP
1997-98 24.15 24.51 -0.36
1998-99 23.19 23.51 -0.32
1999-00 25.69 26.97 -1.28
2000-01 23.77 24.21 -0.44
2001-02 24.93 25.65 -0.72
2002-03 25.93 25.02 0.91
2003-04 29.03 26.17 2.86
2004-05 32.41 32.45 -0.04
2005-06 33.44 34.28 -0.84
2006-07 34.6 35.87 -1.27
2007-08 36.82 38.03 -1.21
2008-09 32.02 35.53 -3.51
2009-10 33.69 36.3 -2.61
GDS GROSS DOMESTIC SAVINGS(% OF GDP)
GCFGROSS CAPITAL FORMATION(% OF
GDP)
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BJP Ruled States: Performing Better
• GSDP (Gross State Domestic Product) growing at double pace thanthat of National GDP which is at 5%.• Fiscal Deficits (FD) of all BJP/NDA states below 3% while CENTRES
FDclose to 6%• Average per capita power consumptions of BJP/NDA States – 763Units. (National Average – 631 Units)• Average Expenditure on Education of BJP/NDA States is around5.3% of GNP while National Average is 4.9%• Higher Gross Primary School Enrolment Ratio and Less Drop-out.
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Sum Total of
UPA Regime
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UPA The Deficit Government
1. Ethical Deficit2. Trust Deficit3. Leadership Deficit4. Decision Deficit5. Governance Deficit6. Trade Deficit7. Fiscal Deficit8. Revenue Deficit9. Current Account Deficit
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UPA Navratna
1. A Raja – 2G Spectrum Scam
2. Suresh Kalmadi – CWG Scam
3. Kanimozi – 2G Spectrum Scam
4. Ashok Chavan – Adarsh Building Scam
5. Pawan Kumar Bansal – Railway Bribery
6. Ashwini Kumar – Coalgate
7. Subodh Kant Sahay – Coalgate
8. Veerbhadra Singh9. Navin Jindal
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UPA 9 Economic Sins1. Jobless Growth2. Declining GDP Growth Rate3. Rising Fiscal Deficit4. Sky-rocketing
Food Inflation5. High Interest Rates6. Booming Current Account Deficit7. Attacking Federal Fiscal Principles8. Dismal Infrastructure Investment9. Steep fall in Rupee
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