UPA first came to power in 2004 with thumping majority and the Left being one of its allies. The economic policies undertaken by the government brought about a tremendous change in the country with the economy growing by about 7.8 % annually. A lot of welfare programmes were initiated like MNREGA, JnNURM, Indira Aawas Yojnaral and several old programmes were implemented with more commitment.
In 2007 the entire world came in for a rude shock when the housing bubble burst in America and the toxic assets seeped into a lot of other economies, pulling down the entire European economy which is still reeling with the effects. At that time the prudence of the UPA government came into fore as it had shown faith in the fundamentals of the economy. A strong banking structularal situture, good agriculture and growing industrial production did not let the economy get effected significantly. More importantly the government spending on welfare programs did not get effected.
In 2009, UPA got re-elected with the mandate clearly indicating that government wanted good governance. This provided a great opportunity for the Prime Minister and his entire team to push more welfare oriented works. Right to Education was introduced. Recently on 26th August the Right to Food Bill was passed by the lower house of the Parliament which will cover about 80 crores people of the country. It is one of the most ambitious program launched by the government after MNREGA.
However currently the economy is going through one of the low phases where forex reserves have become a matter of concern. The huge CAD is being constantly monitored and Finance Ministry along with Reserve Bank of India is taking monetary and non monetary measures to control the situation. International political disturbances are also not helping matters.
What the country needs today is strong fundamentals - manufacturing sector has to pick up, local companies have to be innovative, agriculture requires all the help, and only then can we move back to a thriving economy.
In 2007 the entire world came in for a rude shock when the housing bubble burst in America and the toxic assets seeped into a lot of other economies, pulling down the entire European economy which is still reeling with the effects. At that time the prudence of the UPA government came into fore as it had shown faith in the fundamentals of the economy. A strong banking structularal situture, good agriculture and growing industrial production did not let the economy get effected significantly. More importantly the government spending on welfare programs did not get effected.
In 2009, UPA got re-elected with the mandate clearly indicating that government wanted good governance. This provided a great opportunity for the Prime Minister and his entire team to push more welfare oriented works. Right to Education was introduced. Recently on 26th August the Right to Food Bill was passed by the lower house of the Parliament which will cover about 80 crores people of the country. It is one of the most ambitious program launched by the government after MNREGA.
However currently the economy is going through one of the low phases where forex reserves have become a matter of concern. The huge CAD is being constantly monitored and Finance Ministry along with Reserve Bank of India is taking monetary and non monetary measures to control the situation. International political disturbances are also not helping matters.
What the country needs today is strong fundamentals - manufacturing sector has to pick up, local companies have to be innovative, agriculture requires all the help, and only then can we move back to a thriving economy.
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