NaMo charm results in global oil price dip

Published on May 12, 2015 13:47:33 PM
Business

 

NaMo mantra has brought about a significant growth in Indian economy. After Modi taking charge as PM, Indian economy has rebounded, oil prices fell globally, and foreign-exchange reserves grew.

NDA government lead by the iconic leader has had notable impact in various sectors; it has given boost to GDP numbers. 

Following are the indicators that show India’s transformation in the first year of NaMo leadership:
•Economic growth has seen positive change in this one year.  From 4.5 per cent in the 2013 fiscal year, the growth rate jumped up to 6.9 per cent for the 2014 fiscal. GDP growth is estimated to be 7.4 per cent for 2014-15.

•Agriculture is considered as backbone of the Indian economy. This sector has registered 1.1 per cent of growth in 2014-15 when compared to 0.8 per cent in 2009-10. Agriculture sector currently employs around 600 million Indians.

•Foreign-exchange reserves at the end of 2014-15 increased to 12 per cent from $341 billion as compared to $304 billion at the end of 2013-14. 

•Petroleum products (petrol, diesel, LPG and the like) consumption in 2014-15 increased to 3.1 percent. According to the Oil ministry, petroleum products demand is likely to grow 3.3 per cent in the next financial year.

•After Modi taking charge, crude oil prices declined globally. The free fall in prices played their part in trimming India’s import bill, and saving on foreign exchange. 

•Installed electricity capacity rose to 10 per cent in 2014-15 against 2013-14. 

•The index of industrial production (IIP) for eight core sectors (coal, fertilisers, natural gas, refinery products, crude oil, cement, steel, and electricity) saw significant improvement; IIP grew 5 per cent during 2014-15 against 4.2 per cent the previous year. 

•Exports and imports in terms of dollars declined 2 per cent and 0.5 per cent respectively, in 2014-15 from 2013-14. 

•Meanwhile, equity investors in India have been resoundingly optimistic after Modi took charge. India’s benchmark index, the Sensex, touched 30,000 points level, its highest ever, in intra-day trading on March 4, 2015, when RBI governor Raghuram Rajan cut the repo rate.