1. 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

2. 2004-2005
Real GDP
Growth Rate 7.0 % Good
Inflation 6.48 % Costly manufactured goods keep inflation rates high
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

3. Manmohan Singh assumes office as the new PM
Indian National Congress forms the United Progressive Alliance
(UPA) government with outside support from Left parties in a
surprise election victory
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

4. 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

5. 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

6. 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

7. Sensex Rises
Frantic buying from foreign institutional investors, also well
supported by local operators helps BSE cross the magical figure
of 10,000
BSE
10,000
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

8. 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

9. New Associations
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

10. 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
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

11. 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

12. 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

13. 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

14. Sensex on a High
Sensex scales a record intra-day high of 21,206.77 points on
January 10, 2008
21,206.77
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

15. 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

16. 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

17. 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

18. 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
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

19. 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

20. 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

21. 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

22. 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)
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

23. 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

24. 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

25. 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

26. Revisions In The System
India’s central budget crosses ` 10 lakh crore for the first time, as the government begins to usher in major second-generation reforms.
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
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

27. 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
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

28. 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

29. 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

30. The 2G Scam
Telecom minister A Raja resigns facing charges of
selling scarce radio spectrum at throwaway prices to
ineligible companies
According 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

31. 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

32. 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

33. 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

34. 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
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

35. 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

36. 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

37. 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

38. 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
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

39. 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

40. 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

41. 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

42. 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

43. Rahul Heads Congress
Rahul Gandhi assumes new role as the
Congress Vice President
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

44. 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

45. 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

46. 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

47. 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

48. 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

49. 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

50. 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

51. 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

52. 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

53. FDI Sees New Developments
Bharti – Walmart
Break-up
Walmart calls off its deal with Bharti group
Decides 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

54. 2004-2014: Some Figures
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

55. The Rupee’s Journey
The Value of US $ in Rupees over the last 10 years Source: XE.com
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

56. Per Capita Income (in Rs)
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Per 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

57. GDP Growth Rate (%)
7%
9.50% 9.60% 9.30%
GDP Growth Rate (%)
6.70%
8.60% 8.90%
6.70%
4.50%
4.90%
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

58. Rise in Prices – A Feeler
Milk (Price) (Rs)
18
46
2004 2014
Petrol (Rs/litre)
33.71
72.47
2004 2014
Maruti Swift Car (Rs)
387000 458000
2004 2014
Rice (White, Rs/kg)
22
52
2004 2014
Eggs (Rs/Dozen)
20
50
2004 2014
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

59. 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

60. Thank You
Source: Hindustan Times, Times of India, The
Hindu, IBNLive, NDTV, Indian Express
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014