PM Modi vs Manmohan Singh: Who among the two has handled the economy in the best way, know the truth here

New Delhi: India's economy has seen significant changes in the last two decades under the rule of two prominent Prime Ministers, Dr. Manmohan Singh and Narendra Modi. Various economic factors have been affected during the tenure of both the leaders. Let us know how key economic indicators like GDP growth rate, inflation, fiscal deficit, ease of doing business, foreign exchange reserves and foreign debt have been affected under his rule.

1.GDP growth rate

The average GDP growth rate during the tenure of the Manmohan Singh government (2004–2014) was 6.8%, which was a good performance considering the global and national economic conditions at that time. During this period, India took advantage of various reforms and global economic reforms. In contrast, the average GDP growth rate during the Modi government (2014-2022) stood at 5.25%. However, after the impact of the Covid-19 pandemic subsided, this rate reached 6.84%, which is equal to the level of the Manmohan Singh government.

2. Inflation

Inflation rate is an important factor for the economy of India and it affects the purchasing power of common citizens. Inflation during the Manmohan Singh government averaged 7.5%, which was a challenging situation for the Indian economy. At the same time, Modi government controlled inflation and maintained it at an average of 5 percent. During this period, the government carried out several monetary policy reforms and worked towards supply-chain reforms, which helped keep inflation relatively low.

3.Foreign debt

India's external debt stood at $440.6 billion in March 2014 under the Manmohan Singh government, but under the Modi government it will reach $613 billion by 2023. Although foreign debt has increased, the situation is not a matter of much concern unless debt service improves. Efficiency and debt management.

4. Ease of doing business

During the Manmohan Singh government, India's rank in the ease of doing business index fell from 132 to 134. During this period, there were many structural problems and complexities in business processes, making it difficult to do business. The Modi government carried out reforms in this sector and India significantly increased its ease of doing business index. By 2022, India will reach 63rd position, which is a significant improvement. The main reasons behind this were digitalization, simplification of business processes and changes in government policies.

5.Foreign exchange reserves

At the end of the Manmohan Singh government in 2014, India's foreign exchange reserves were $304.2 billion. However, under Modi government it will reach $595.98 billion by 2023. This growth shows that India has managed its currency reserves better and strengthened its position in the world market.

6. Fiscal Deficit and Current Account Deficit (CAD)

The average fiscal deficit during the Manmohan Singh government was 4.3% and current account deficit (CAD) was 2.4%, while it increased to 4.8% in 2012–2013. This was a concern for financial stability, as higher deficits could scare away foreign investors and increase currency instability. The Modi government controlled the fiscal deficit and maintained it at an average of 3.7%. Additionally, the current account deficit also stabilized at 1.6%, indicating that the government has taken effective steps to improve foreign trade and import-export balance. Read this also: Tejashwi Yadav's leader is not well, 10 days' extension given, demand for money comes from foreign number