the 10 years of upa government (india) (2004 2014)
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The 10 Years of UPA Government (2004-2014)
An Overview
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2004-2005
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Real GDP Growth Rate 7.0 % Good
Inflation 6.48 % Costly manufactured goods keep inflation rates high
Indian National Congress forms the United Progressive Alliance (UPA) government with outside support from Left parties in a surprise election victory
Manmohan Singh assumes office as the new PM
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2005-2006
Real GDP Growth Rate 9.5% Very good
Inflation 4.47% Modest food price rise counters high fuel costs
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
New Acts Passed
SEZ Paving way for setting large duty free enclaves aimed at making India a large global manufacturing hub
NREGA National Rural Employment Guarantee Act – arguably the world’s largest rural job guarantee scheme
RTI Right To Information – aimed at bringing transparency in government functioning and giving access to information on public policy formulation
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Reforms/New Announcements
Bharat Nirman
Finance Minister P Chidambaram announces major programmes including ‘Bharat Nirman’ to give a ‘new deal to rural India’
VAT A state-level multi-point tax on value addition collected at different stages of sale – more transparent, uniform and less prone to tax evasion
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Sensex Rises
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Frantic buying from foreign institutional investors, also well supported by local operators helps BSE cross the magical figure of 10,000
10,000
BSE
2006-2007
Real GDP Growth Rate 9.6% Very good
Highest since 1989
Inflation 6.59% Costly food on rising demand pushes up inflation
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
New Associations
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
India-US Nuclear Deal
The two nations announce a civil nuclear agreement The US agrees to give India access to civil nuclear
technology India agrees to greater scrutiny of its nuclear
programme
Air India &Indian Airlines
The two companies merge into one entity called National Aviation Company of India Limited (NACIL)
Airport Modernization
Government hands out Delhi and Mumbai airport modernization to consortia led by GMR and GVK groups amid stiff opposition from Left parties and employee unions
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Connecting People
100 Million
Number of cellular phone subscribers in India cross 100 million – 11 years after mobile telephony was opened up for private participation
2007-2008
Real GDP Growth Rate 9.3% Very good
GDP crosses $1 trillion mark, becoming one of the world’s largest economies
Inflation 4.75% Stagnant fuel costs bring down the inflation rate
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Her Excellency
Pratibha Patil becomes the first woman to be elected President of India
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Mergers/Acquisitions
Tata Steel – Corus
Tata Steel wins their bid for acquiring Anglo-Dutch metals company Corus (at $11.3bn) – becomes world’s 5th largest steel giant.
Vodafone – Hutch
Vodafone buys 67% of Hutchison Essar for $11.1 bn from Hutchison Whampoa (HongKong)
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Sensex on a High
Sensex scales a record intra-day high of 21,206.77 points on January 10, 2008
21,206.77
2008-2009
Real GDP Growth Rate 6.7% Average
Inflation 8.05% Jump in oil prices knock up prices of most goods
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Confidence in Government
Government survives a vote of confidence brought after Left-wing parties withdraw their support over controversial nuclear deal with US
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Mumbai Hurt
Nearly 200 people are killed and hundreds injured in a series of co-ordinated attacks by terrorists in Mumbai in November 26th, 2008
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Financial Reliefs
Finance Minister P Chidambaram raises the income tax exemption limit by ` 40,000 to ` lakh per annum
He also announces ` 60,000 crore farm loan waiver and relief scheme in the budget for 2008-2009
Recession kicks in
The collapse of Wall Street icon Lehman Brothers triggers a financial crisis pushing the world economy into the worst recession in 80 years
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
India feels the economic slowdown
Oil Oil companies raise petrol, diesel and cooking gas prices as global crude oil prices touch a record $147 a barrel
RBI’s actions
The government and RBI announce cuts, tax breaks and lending rate cuts for global melt-down hit companies
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Entertainment Finds A New Genre
IPL, a domestic T20 cricket tournament, begins to packed stadiums (would later be marred by controversies)
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
TATA Motors Marks Its Place In Auto History Jaguar-
Land Rover
TATA Motors buys iconic British car brands Jaguar and Land Rover
Nano TATA Motors showcases Nano, dubbed by media as India’s ‘People’s Car’(whose production was moved to Gujarat form West Bengal following farmers’ protests)
Satyam’s Lies Exposed
B Ramalinga Raju, chairman of erstwhile Satyam Services, resigns after allegedly confessing to doctoring of company’s books
(the company would later be taken over by Tech Mahindra, as a part of its diversification strategy)
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2009-2010
Real GDP Growth Rate 8.6% Good
Inflation 3.81% Flat fuel prices help counter high food costs
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
UPA’s 2nd Innings
Manmohan Singh assumes office for a second term as PM following a resounding UPA victory in Parliamentary elections
Sensex jumps by more than 2000 points in a single day in May after UPA returns power with stronger mandate
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Revisions In The System
Companies Bill
Government introduces Companies Bill in Parliament proposing a series of amendments – making independent directors, board members and auditors more accountable
Aadhar Government launches Aadhar to provide a unique 12-digit individual identification number issued by Unique Identification Authority of India(This number would serve as a proof of identity and address, anywhere in India)
Direct Taxes Code
Government releases first discussion paper on Direct Taxes Code to overhaul India’s income tax structure by simplifying rules and norms
India’s central budget crosses ` 10 lakh crore for the first time, as the government begins to usher in major second-generation reforms.
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Hit by Drought
India hit by the its worst drought three decades on inadequate monsoon rain – resulting in fall in farm yield and drop in sown area
RBI Buys Gold
The Reserve Bank of India (RBI) purchases 200 tons of gold from the International Monetary Fund (IMF)
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2010-2011
Real GDP Growth Rate 8.9% Very good
Inflation 9.56% Costly food and fuel raises overall inflation rate
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
The 2G Scam
Telecom minister A Raja resigns facing charges of selling scarce radio spectrum at throwaway prices to ineligible companiesAccording to CAG, this added up to a potential revenue loss of ` 176,000 crore.
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
The Rupee Has a Symbol
Government approves a symbol for the rupee - A symbol that elegantly combines Roman and Devnagari scripts
Created by D Uday Kumar, a 31-year-old assistant professor at IIT Guwahati
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
The CWG Scam
Corruption allegations surface barely 3 months ahead of the XIX Commonwealth Games
Allegations of major embezzlement of funds by the organizing committee (approx ` 700 billion)
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Obama Comes To India
President Barak Obama arrives with the largest business delegation ever to accompany the US head of state to any country
A clear sign that India’s rising economy has never mattered more to the world’s richest country than at this time
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Efforts To Revise Tax System
Direct Tax Code (DTC) Bill
Government tables the Direct Taxes Code (DTC) Bill in Parliament – to consolidate and amend the law relating to direct taxes such as income-tax and wealth –tax
Constitution Amendment Bill (for GST)
Government tables the Constitutional Amendment Bill to introduce a Goods and Services Tax to stitch together a common national market
2011-2012
Real GDP Growth Rate 6.7% Good
Inflation 8.94% Fuel and food costs remain high for another year
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Anna Fasts Against Corruption
Thousands throng Delhi’s Ram Lila Ground to support anti-corruption crusader Anna Hazare, as he sits on a 12-day fast demanding a strong Lok-Pal (ombudsman) bill
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Supreme Court Slams 2G Process
In a major verdict, the Supreme Court cancels 122 2G telecom licenses and spectrum granted by A Raja to telecom companies in 2008
The SC says that the licenses were issued in a ‘totally arbitrary and unconstitutional’ manner
The court also comes down on the controversial first-come-first-serve policy
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Investment Welcomed
Vedanta – Cairn India
Government approves NRI Billionaire Anil Agarwal’s Vedanta Resources’ $8.6 billion bid to gain controlling stake of British oil and gas explorer Cairn Energy Plc’s Indian arm Cairn India
FDI in retail
Political compulsions force the government to quickly bottle up the decision to allow foreign direct investment (FDI) in multi-brand retail
2012-2013
Real GDP Growth Rate 4.5% Bad
Inflation 7.35% Successive interest rate cuts fail to tame inflation
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Budget Proposes GAAR
Union Budget 2012-13 proposes GAAR (General Anti-Avoidance Rules) which are framed to minimize tax avoidance –
A concept that generally empowers the Revenue Authorities in the country
GAAR implementation postponed by 3 years by government due to negative investor sentiment towards the proposition
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
The Coal Scam
CAG (Comptroller and Auditor General of India) CAG office accuse the Government of India of allocating coal blocks in an inefficient manner during the period 2004-2009 (loss of potential revenues of ` 1.86 lakh crore.
Opposition BJP lodges a complaint resulting in a CBI probe
Opposition parties launch an overall unrestrained attack on the government, asking PM to quit
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Reforms – FDI
Unfazed by political opposition, government announces big-bang reforms –
Allows FDI upto 51% in multi-brand retail
Also announces a steep hike in diesel prices, caps subsidized cooking gas
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Rahul Heads Congress
Rahul Gandhi assumes new role as the Congress Vice President
2013-2014
Real GDP Growth Rate 4.9% Bad
Inflation 6.06% High onion and vegetable prices keep inflation high
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Jet Flies Higher, and Middle East
Jet Airways and Abu-Dhabi based Etihad announce India’s biggest foreign direct investment deal in the aviation sector valued at ` 2,058 crore for a 24% stake in Jet by Etihad
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Rupee Falls
Rupee touches a new low of 68.85 – as the US prepares to withdraw its monetary stimulus programme
RBI and government curb in gold imports and eases foreign investment caps
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
RBI Has A New Face
Chicago University Professor and former IMF chief economist Raghuram G Rajan takes over as the new RBI governor
Rajan inherits the tricky task of restoring the Indian Rupee, as well as reviving India’s slowing economic growth
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
New Acts/Bills Passed
Companies Bill It replaced the Companies Act, 1956. The new rules make CSR spending mandatory for companies, have more provisions for employees’ interest, demand greater accountability from independent directors, etc.
Pension Funds Regulatory Development Authority Bill
The bill aims to create a regulator for the pension sector and extend the coverage of pension benefits to more people
Food Security Act
Seen as Congress’ trump card ahead of 2014 general elections due by May – the law aims to provide subsidized food grains to approximately two thirds of India’s 1.2 billion people
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Food Inflation Rises
Food inflation reaches record highs on the back of high onion prices
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Delhi Crowns Kejriwal
Aam Aadmi Party’s Arvind Kejriwal takes over as the new Chief Minister in Delhi as Congress trounced in Assembly polls
(He would resign 6 months later, amid differences over Jan Lokpal Bill)
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
A Legislation To Answer Corruption
Parliament passes anti-graft legislation Lok Pal Bill
Anna Hazare breaks his fast, Congress considers Rahul’s contribution significant in the process
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
India Wins Big With Global Trade Deal
India has its way on WTO’s ‘Bali Package’ at the Ninth Ministerial of the World Trade Organization
India was able to introduce an exception for its agricultural subsidy programme in the deal
India led the G33 group of developing countries in submitting a proposal that countered the US-led G20 proposal
The draft proposes an interim mechanism to safeguard minimum support prices to farmers against WTO caps till a permanent solution is adopted
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
FDI Sees New Developments
Bharti – Walmart Break-up
Walmart calls off its deal with Bharti groupDecides to independently own and operate retail businesses in the country
Tesco enters Indian market
Tesco’s plans for expansion into India have been approved by the country’s government(intends to invest $110m in India’s retail sector)It sees Tesco take a 50% stake in Tata Group’s Trent Hypermarket
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2004-2014: Some Figures
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
The Rupee’s Journey
The Value of US $ in Rupees over the last 10 years Source: XE.com
Per Capita Income (in Rs)
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000Per Capita Income (in current prices)Per Capita Income (Inflation Adjusted)
During 2004-2014, India’s average income has grown 3 times. Adjusted for inflation, it has grown by 65% - implying high prices have eroded household income.
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
7.00%
9.50% 9.60% 9.30%
6.70%
8.60% 8.90%
6.70%
4.50% 4.90%
GDP Growth Rate (%)
GDP Growth Rate (%)
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Rise in Prices – A Feeler
2004 2014
18
46
Milk (Price) (Rs)
2004 2014
33.71
72.47
Petrol (Rs/litre)
2004 2014
387000
458000Maruti Swift Car (Rs)
2004 2014
22
52Rice (White, Rs/kg)
2004 2014
20
50
Eggs (Rs/Dozen)
156% 114.98%
18.35%
136.36% 150%
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
UPA Government – Some Broad Trends Term 1
Strong Economic Growth
Superior Stock Market Performances
First Term also coincided with a global economic boom – fuelled by massive liquidity wave
The boom ended in a spectacular global crash just as it was entering its last year
Term 2
Low growth
High interest rates
Staggering deficits
Weak currency
Loss of accountability in light of a series of scams
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Thank YouSource: Hindustan Times, Times of India, The Hindu, IBNLive, NDTV, Indian Express
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