When the required maturity is lacking among the political leaders, they fight over their respective governments’ performance and actually use data not in reality but argue with the data twisted to back it up in their favour. Sadly,this is the story where growth datas are thrown on their opponent face like trading quotes in village hat market, far far away from the scientific analysis by an economist .
The political leaders, ahead of election fight over their respective governments’ performance,and in that fashion BJP's Modi has been boasting Gujarat's high growth story clubbed with ND 's dream run of economy till 2004 was countered by the Congress' intellectual economist cum finance minister Chidambaram with counter allegations on truth in Modi's claim by reminding “a golden period of growth” under UPA-1; but that advantage was then squandered, which is why we are in difficulties today.Should the people go by the present day reality or sleep in the dream of our golden past.
Arguing with the numbers one must understand that Indian economy was on the growth path, since last two decades, out of this the first slab consists of the period between 1990 to 2000 and the second slab one may fix as from 2001 to 2010. as most economist shall agree to two basic points : India is developing economy (part of BRICS countries) that counts for more than double digit or nearer to that rate of growth, unlike the saturated economies like the European countries or the highly developed nations like US or Japan or South Korea where 1 to 3 % is the limit, and even 0.5 to 1% growth is treated as satisfactory when recession conditions prevail.
The second point is a bigger analytic point , which must be carefully understood, before juggling with the percentage growth rates analysis : that is when any country starts riding on growth ladder, for first few years say 2 to 5 is a period of time when you begin with moderate rates of growth say 2% to 6% , just as a runner or car takes time to pick up, by using regular change of gears or adjustments.
Once the pick up has taken place, the past growth will add up in multiplying effect, than the expected growth should gradually rise from range of 6-8 to 10-15% range, as we have witnessed in many developing or these BRICS countries. In this type of economies growth rates are considered to be rising every year by minimum 1 to 2% year to year, but any fall or gradual fall for more than 1 year should be considered serious flaw in the system.
One just consider in between the period from 2008 to 2012, when serious recession was looming large on world economies in the aftermath of "Lehman" related financial crisis and later on Euro crisis, created havoc in developed economies and world trade,even though the highest growing Chinese economy still managed above 8 to 9%, though down from above 12%, because export had very high base and export was falling rapidly.
But in case of India which was predominantly domestic economy still manged an incremental growth trajectory running between 6 to 8 % in first part of this "world wide recession". Indian economy was least disturbed in this period till 2010-11 as growth remained in the range of 6 to 8%, but sudden collapse was enacted after that, in which no negative role was played by at least three important contributing sector like agriculture, export and services.
The fall was triggered by the most unexpected areas that is blockade in mining, steep fall in both foreign as well as the local investor's confidence due to huge corruption corruption corruption allegations against the government , policy paralysis and moral break down in top central ministries along with the bureaucracy and many more , but surprisingly most reasons were non economic.