A Decade of Economic Destruction by Corrupt Congress led UPA
February 22, 2014
Over FY1994-97, average GDP growth was 7.5% but this led to companies piling up debt and the period of high growth came to a crashing halt with the Asian crisis in 1997. This was followed by six lean years of FY1997-2003. Over FY2003-11, average GDP growth was 8.5%, which led to companies increasing debt & CAPEX with hopes of progressive reforms and economic expansion.
How Corrupt Congress Led UPA Coalition Destroyed Economy between 2004-2014
Growth has suffered due to mishandling of the economy. The NDA performed better than the UPA-2 based on real GDP growth of the past one-year, two-year and three-year average growth. The fiscal situation was also not handled well with fiscal deficit increasing 4.3X between FY2004 and FY2014. Similarly, the fuel pricing issue was not handled well, which led to subsidies increasing sharply over this period (6X).
Inflation Under the Congress Government
The average Consumer Price Index (Inflation) for UPA-1 and UPA-2 was 6% and whopping 10% respectively. This means if your Rs 100 was not earning at least Rs 10 in Bank Rate of Interest per year then you were actually eroding capital. Also, wages were not handled well with a rapid increase in rural wages due to NREGA and in urban wages due to Government-mandated wage increases where 80% of the amount went into the pockets of Power Brokers and Politicians.
Destroyed the Indian Currency and Deficit
Under the nose of Noted Economist and Puppet Prime Minister leading the most Corrupt Political Paralytic Governance, Indian Rupee Weakened to Historical Low of Rs 65 and the external account was not handled well with a current account surplus of 1.4% in FY2004 [Surplus created by Shri Atal Bihari Vajpayee’s Government] deteriorating to a current account deficit of 2.5% in FY2014 and even worse in the previous two years. Finally, business was handled poorly with retrospective, arbitrary taxation and an unstable policy framework.
Aadhaar and e-governance have not yet taken off and was designed to keep Corruption in they system. The Delhi-Mumbai industrial and freight corridors are still on papers only with most Ministries of the Government Paralyzed and now busy blackmailing industrialists for the last loot of money.
Indian Banks are loaded with Highest bad debt ever and the issue will take time to be resolved. Fiscal correction will need to continue for the next 3-4 years but there are negative forces at play in the form of higher wages and pensions for government employees. Finally, credit will continue to be expensive to the Indian industry.
With such a Pathetic Situation of Indian Economy, how do you expect the Indian Industrialists to perform whose Shares you have bought directly or through Mutual Funds and other investment instruments ? The Corrupt Congress Government has killed the Markets and investment opportunities with its vested interest polices in every move in the last 10 years. We humbly request all of our readers to decimate and Wipe Out Congress out of India forever.