Though some experts believe that the Modi government has been able to pull up the economy of the country, opposition parties claim that the BJP-led NDA government has systematically destroyed the Indian economy
New Delhi: With the Lok Sabha elections just around the corner, one of the major issues that are being debated over is: How did the economy fare under the Modi-led NDA government?
It is a known fact that over the last five years, there has been a remarkable rise in foreign flows, especially in foreign direct investment (FDI). According to data from Moody’s Investor Services, the Indian market, which used to be considered as one of the Fragile Five markets in the world, has emerged as a top investment destination.
Another aspect, in which the Mod-government has done tremendously well is the ease of doing business, i.e. how conducive the environment is to do business. Experts credit this to methodological changes that were brought about. Indian under the leadership of the Prime Minister, India became the top-ranked country in South Asia as well as the third among the BRICS.
However, the current Indian government has been accused by the opposition of systematically destroying the Indian economy.
Congress leader Sachin Pilot said, “The BJP came to power on the promise of controlling inflation, but despite favourable global conditions, nothing was done by the government.”
Claims vs facts
Contrary to these claims, data shows that inflation had reached a peak of nearly 12% in 2010 and 11% in 2013. In 2017 and 2018, the average annual rate was below 4% and 4.5% respectively.
Experts credited the steady decline in oil prices as one of the major reasons for the decline of inflation.
But that cannot be the only reason for low inflation under Modi rule. Notwithstanding the news of government 'interference' in matters of the RBI, for the periods that Raguhuram Rajan, Urjit Patel and Shaktikanta Das have served as governors of the central bank, inflation targeting is one area of work of the RBI that the Modi government has rightly not interfered in. At the most, some of its ministers have expressed displeasure before the media about the RBI's reluctance to ease off lending rates.
President Ram Nath Kovind on Thursday said India's contribution to the global economy has increased from 2.6% in 2014 to 3.3% in 2017 on the back of high growth rate during the last four and a half years.
"India is playing a significant role in international trade. While India's contribution to the world GDP was 2.6% in 2014, it has increased to 3.3% in 2017 as per the latest reports," Kovind added.
The president also credited several schemes by the Modi government. The President said, 34 crore bank accounts have been opened in the country under the 'Jan Dhan Yojana' and almost every family is now connected to the banking system.
Noting that developing modern infrastructure for economic development as per the needs of the 21st century is the aspiration of every Indian, he said, "sensitive to their aspirations, my government is completing new projects at a fast pace."
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Last Updated 3, Apr 2019, 4:29 PM