Has Inflation Really Increased under the Modi Government?
Recent surveys and opinions suggest that inflation has become more pronounced under the leadership of Prime Minister Narendra Modi. However, a closer examination reveals a more nuanced reality about inflation trends in India.
Public Perception and Surveys
A survey revealing that 72% of Indians believe inflation has become uncontrolled since Narendra Modi became the Prime Minister highlights a significant portion of the population's concerns. Additionally, over 46% of Indian respondents feel that the economic performance has been poor during Modi's tenure, with the participation of Finance Minister Nirmala Sitharaman in the third General Budget.
Conducted prior to the eighth budget, the survey illuminated that more than three-quarters of respondents perceived that prices had increased and inflation had become unmanaged after the arrival of Modi as Prime Minister. The IANS-CVoter survey on the Budget 2021 further revealed that over 70% of people felt the impact of higher commodity prices in the last year. Statistically, this percentage (72.1%) represents a significant increase in the perception of uncontrolled inflation compared to 17.1% in 2015.
Digging deeper, the survey data shows that only 10.8% of respondents in 2020 reported that prices had come down, while 12.8% said they had remained unchanged. This marks the weakest performance of the Modi government on the economic front since 2014. Furthermore, 46.4% of people found that the economic performance during the tenure of Prime Minister Modi and Finance Minister Nirmala Sitharaman to be worse than expected, in contrast to 31.7% who felt it was better than anticipated.
A Closer Look at Inflation Trends
While it is true that many Indians feel that inflation rates have increased under the Modi government, a broader historical context is necessary to understand the full picture. Inflation in India, as in many other countries, is a long-term issue that has not been confined to the period of Modi's leadership. In fact, it reached an all-time high of 14% under the United Progressive Alliance (UPA) II, a government that preceded the Modi-led National Democratic Alliance (NDA).
It is also incorrect to claim that there was no inflation under the previous Congress-led government. Data from other sources consistently show that inflation rates under the Congress Party were also significant. Moreover, the rise in inflation rates after the onset of the COVID-19 pandemic is a global phenomenon, and India is not immune to this trend.
Balancing Perspectives
It is important to acknowledge that opinions about economic performance and inflation can be highly subjective and influenced by various factors. The true measure of economic performance should include a broader range of indicators beyond just inflation, including GDP growth, employment, and poverty reduction. These factors can provide a more comprehensive understanding of the overall economic trajectory under the Modi government.
For those who are critical of the Modi government, it is crucial to seek out a balanced perspective that takes into account the historical context and global trends. Likewise, supporters of the government should also embrace a critical examination of the economic situation to ensure continuous improvement and address areas of concern.
Conclusion
While many Indians perceive that inflation has increased and economic performance has been poor under the Modi government, it is essential to view this issue within the broader context of India's economic history and the global economic landscape. Understanding these nuances can provide a more accurate and comprehensive picture.