GDP the only variable where the current government has kept pace with the previous one
Mumbai: 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.
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.
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.
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