There is an ongoing debate on performance of Indian Economy between UPA and NDA governments. This was studied by Times of India in one of its posts and found the following objective comparisons on 10 key indicators of any economy. Team Know India build on the following charts and try to make it more understandable for common people. We compare both the governments and try to see which government won in each parameter.
Gross Domestic Product (GDP) is the broadest quantitative measure of a nation’s total economic activity. More specifically, GDP represents the monetary value of all goods and services produced within a nation’s geographic borders over a specified period of time. In this parameter UPA has done well on an aggregate level (based on latest evaluation technique). Thus, UPA v/s NDA 1-0
Consumption can be defined in different ways, but it is best described as the final purchase of goods and services by individuals. The purchase of a new pair of shoes, a hamburger at the fast food restaurant or services, like getting your house cleaned, are all examples of consumption. It is also often referred to as consumer spending. Higher level of consumption are considered good for economy. In this parameter, in government sector NDA has performed well but in private sector UPA government has done better. Thus, UPA v/s NDA 1.5 – 0.5.
Gross Fixed Capital Formation
Gross fixed capital formation (GFCF) refers to the net increase in physical assets (investment minus disposals) within the measurement period. It does not account for the consumption (depreciation) of fixed capital, and also does not include land purchases. It is a component of expenditure approach to calculating GDP. This parameter is very much required to gauge long term performance of any economy. Higher the GFCF implies higher growth in future. In this parameter, performance of UPA was better than current NDA government. Thus, UPA v/s NDA 2.5 – 0.5
Banks provide credit or loans to various organizations and when this loans are given to Food Corporation (FCI)or for promotion of food safety etc they are known as Food credit and loans other that related to food are called Non food bank credit. Generally, higher the non food bank credit, higher the growth of economy. In this parameter too, UPA government did well than NDA. Thus, UPA v/s NDA 3.5 – 0.5
The difference between total revenue and total expenditure of the government is termed as fiscal deficit. It is an indication of the total borrowings needed by the government. While calculating the total revenue, borrowings are not included. Fiscal deficit should be contained for the healthy economy. In this parameter, NDA has done well. Thus, UPA v/s NDA 3.5 – 1.5
Current Account Deficit
The current account deficit is a measurement of a country’s trade where the value of the goods and services it imports exceeds the value of the goods and services it exports. The current account includes net income, such as interest and dividends, and transfers, such as foreign aid, although these components make up only a small percentage of the total current account. The current account represents a country’s foreign transactions and, like the capital account, is a component of a country’s balance of payments. In this parameter too, NDA performed better. Thus, UPA v/s NDA 3.5 – 2.5.
Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Lower Repo rate increases tendency of banks to lend money which is required for growth. In this parameter, NDA has performed better than UPA. Thus, UPA v/s NDA 3.5 – 3.5
Foreign exchange reserves are the foreign currencies held by a country’s central bank. They are also called foreign currency reserves or foreign reserves. India has seen an upward trend and thus performance is being measured by percentage growth. Clearly, in this parameter, UPA has done well. Thus, UPA v/s NDA 4.5 – 3.5
Wholesale Price Inflation
The wholesale price index is an index that measures and tracks the changes in the price of goods in the stages before the retail level. WPI shows the average price change of goods included in the index and is often expressed as a ratio or percentage, and the change is one indicator of a country’s level of inflation. This parameter has been biggest victory for NDA government as it outperformed UPA comfortably. Thus, UPA v/s NDA 4.5 – 4.5
An exchange rate is the price of a nation’s currency in terms of another currency. In India, it is followed with respect to US Dollars. In this parameter, both the government has done equally as at the time of UPA, global economy was in mess and dollar advanced with respect to all the currencies. Thus, UPA v/s NDA 5 – 5.
10 key economic indicators over the past 14 years show that both UPA and NDA governments have had their strong and weak points. The UPA has scored on growth of income (national and per capita) because of fueled growth while NDA has been able to manage inflation and deficits. We leave it to our readers to decide which government is better for them in terms of managing Indian Economy.