Real Story of India’s Economy During Congress vs BJP rules
Let us take a stroll down the economic lane in India. It was November 2013 and Lakshwadeep was the only place in the country without inflation.
The Consumer Price Index (CPI) that measures Inflation, stood at 10.17%! The food inflation was a whopping 14.72%! While the inflation was galloping, the Index of Industrial Production (IIP) had contracted by almost 2% as mining fell by 3.5% and manufacturing by 2%.
Those were the heady days of the end of 2013 and beginning of 2014. Since then, this has been the trajectory.
source: tradingeconomics.com
The growth in the economy was – well.. quickly going into the ground! The food prices had risen a whopping 157% between 2004 and 2013.
The food inflation from 2014 has been on the way down ever since.
Food prices have been a big reason for the decline. Vegetable prices declined nearly 20 percent last month from a year ago with potato prices, a key staple, contracting for the sixth straight month, the country’s wholesale price index last week showed. After averaging 11 percent between 2007 and 2013, food inflation has averaged 4.5 percent since the start of 2016. (Source: EconomicTimes)
You see, the price rise for food has decreased by about 60%! The prices on the street and in the figures and statistics say clearly.
source: tradingeconomics.com
So, contrary to what the fake news mills of Congress and the media ready to peddle lies keep shouting, the inflation has come down remarkably! After 4 years, in August 2018, the inflation rate stood at 3.69%, where the inflation in food and beverage nation-wide was doing a “Lakshwadeep of 2013” at 0.85%!
Food and beverages inflation went down to 0.85 percent in August from 1.73 percent in July and the food index alone rose 0.29 percent, well below 1.37 percent in July. Inflation slowed for fruits (3.57 percent compared to 6.98 percent in July); prepared meals, snacks, sweets etc. (4.16 percent compared to 4.46 percent); milk and products (2.66 percent compared to 2.96 percent); and eggs (6.96 percent compared to 7.41 percent). Also, prices fell for vegetables (-7 percent compared to -2.19 percent); pulses and products (-7.76 percent compared to -8.91 percent); and sugar and confectionery (-5.45 percent compared to -5.81 percent). On the other hand, prices rose faster for non-alcoholic beverages (1.86 percent compared to 1.4 percent); oils and fats (3.47 percent compared to 2.79 percent); spices (2.88 percent compared to 2.66 percent); and meat and fish (3.21 percent compared to 2.26 percent).
GDP Growth was racing into the ground
Many don’t remember now but in 2014, India had 4 straight quarters of GDP growth of less than 5%, slowest since 2002. This, at a time, when global economy was doing fine. It was a time of high corruption
If you see although the world was doing fine with respect to how the GDP growth was globally in the period from 2013-2017, India was in a special case of a terrible downturn.
And, it had a lot to do with the endemic corruption and scandals where the ruling party was simply plundering the wealth of the nation in scams that were astronomical in proportions. And it was not just about the money that India lost, but about what the country was telling the world at large.
It was saying that there is an extra cost of doing business in India – where they have to pay under the table bribes to get things done. And the impact and threat was not just monetary for these companies. Their own countries were aiming their guns at these large multi-national companies for any mis-steps!
The US Foreign Corrupt Practices Act (FCPA), the UK Anti-Bribery Act, and Canada’s Corruption of Foreign Public Officials Act have targeted a broad range of foreign companies and individuals conducting business in India.
Some of the world’s most prominent companies including Wal-Mart, Oracle, and Diageo have found themselves the subject of anti-corruption investigations by American enforcement agencies. Violations of the FCPA’s anti-bribery and so-called “books and records” provisions in India have resulted in foreign companies paying multi-million-dollar fines in addition to other criminal penalties.
It was this kind of climate the the companies were finding in India to do business in. No wonder the FDI investments had really come down in between 2011 to 2014.
It was only after the new government that the foreign direct investments started increasing when new hope was seen in India.
Congress and Media has some Chutzpah to Talk Economy to Modi
Some wise man had once said – Those who want by the YARD, but give by the INCH, should be kicked by the FOOT! That should be true of Congress and its sycophantic fake media.
The economy before Modi took reigns had been in a tailspin with 4 consecutive quarters of UNDER 5% GDP growth. The Food prices were skyrocketing – increase of OVER 150% since 2004. And after the Modi government came in, the increase in food prices has been 4.5% with the latest food inflation being less than 1%!!
That is the truth that figures and statistics tell. And they don’t lie. Nor do the experiences of so many. Those experiences have led to a record set of victories in every state for the BJP in the last 4 years.