Modi govt yet to match UPA's economic record

The Narendra Modi government needs to grow economy at twice the speed in its second term to catch up with the economic performance of the previous United Progressive Alliance-II (UPA-II) government and even faster if it wishes to trounce UPA-I’s record.  Stock Market Astrology Tips

For example, the manufacturing sector needs to grow at a compounded annual growth rate (CAGR) of 4.2 per cent in the remaining three years of the Modi government’s tenure – nearly twice the 2.2 per cent growth recorded in the first two years. The government needs even more catch-up in the farm sector. Agriculture production needs to grow at an annualised rate of 5.6 per cent. Agriculture production, including food grains and cash crops, has declined at an annualised rate of 2.1 per cent during FY14-16.  Intraday Trading Tips

Exports need to jump 70 per cent in the next three years to match the growth recorded during UPA-II and make up for a decline in merchandise exports and a flat growth in services exports during Modi’s first two years. The combined exports of goods and services declined at an annualised rate of 4.7 per cent during FY14-16 against 9.1 per cent CAGR growth during UPA-II.  Commodity Trading Tips

Gross domestic product (GDP) is the only macro-economic variable where the Modi government has matched the performance of the previous government. GDP at constant prices has grown at a CAGR of 7.1 per cent during Modi's first two years in line with 7.2 per cent GDP growth during the five years of UPA-II.   Nifty Trading Tips

The Modi government, however, has to work harder to translate the headline growth into income growth for individuals. Unlike the previous government, faster GDP growth has not translated into income buoyancy for individuals. The personal disposable income had grown at a CAGR of 9 per cent during Modi’s first two years, down from 13.6 per cent growthduring the whole five years of UPA-II. It needs to grow at an annualised rate of 16.8 per cent over the next three years to allow the Modi government to match the income buoyancy provided by the UPA-II regime.

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