According to Elara Capital, the UPA rule suffered from policy paralysis while growth under NDA was adversely affected by demonetisation and GST. The government increased reliance on dividend receipts in continuation with the policy adopted by the UPA towards the end of its tenure. Food Corporation of India raised Rs 1.4 lakh crore in FY18 (RE) via other sources, up from estimated Rs 72,000 crore. This primarily determined the difference in approach of the two regimes towards food policy management,” Elara Capital noted.A pro-active food management policy, along with higher food production and imports, brought about a sharp fall in food inflation in FY18. The wholesale price to MSP ratio continuously declined under NDA, suggesting limited impact of higher MSP on wholesale market prices.Road conn ectivity stood out, a key policy focus of the NDA government.

Source: Economic Times April 09, 2019 10:52 UTC