Why Indian Inflation Rises During Congress Rule ?

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The Indian National Congress headed by Mr. Rahul Gandhi suffered a miserable defeat in India’s largest electorate state of Uttar Pradesh for only one big reason – Common Man / Aam Aadmi tired of Price rise in India. We decided to collect the data of WholeSale Price Index, Food and Non-Food Inflation over the past 8 years since the Congress government has come to power in India.

As evident in the WPI Food & Noon Food Inflation Chart below from 2005 to 2012, the Government took charge when the Inflation Number was mere 2%.

Within 2 years of assuming Power, the Congress Government under Dr Singh, made sure it touched 10% a whopping 5 times. Due to rampant rise in real estate prices, the governor of the RBI Dr Y V Reddy went against then Finance minister Mr. P Chaidambram and started raising Interest rates, CRR and asking lenders to make double provisions for Real Estate Sector to save India from the Financial Tremor that shook the United States in Jan 2008 because of the Sub prime lending to Real Estate.

Dr Y V Reddy was not given an extension in Sep-2008 when he retired, as he discharged his duties in the interest of Nation and not any political party. Law Makers headed by Mr. P Chaidambram roped in a rubber stamp kind of RBI Governor Dr. Subbarao. The FM & RBI Governor made sure that Inflation touched 10% again in 6 months Feb-2009.

With forthcoming elections in Mind, the Government took extreme measures and brought Inflation to control within 3 months. They emerged victorious with the help of Paid Media and Populist False promises and the Inflation touched 10% within 6 months of victory – Dec-2009.

Since June-2009 til June-2012, the current Finance Minister and RBI Governor have done nothing but False Promises to curb Inflation with no results at the end of the day. During the same period massive Scams such as the Telecom Spectrum Scam, Commonwealth Games Scam and the Coal Scam have been uncovered which has kept them busy covering their wrong doings.

India’s Inflation is higher than GDP Growth and all these so called Finance Minister, Prime Minister who are aged around 80 years need to read their Economics College Text Books again before taking charge to drive a country of 1 Billion Population. At least they should discharge duties fearless of the Italian Ladies 😉

Related posts:

  1. Can the Congress Govt Keep Inflation Under Wraps ?
  2. Double Digit Inflation – Courtesy Congress Government
  3. Indian Food price inflation – not just a one-off
  4. Indian Inflation Grows Faster than Economy
  5. Inflation Continues to scale High – FM & PM Continue with Lip Service – Lost Control of Government

3 thoughts on “Why Indian Inflation Rises During Congress Rule ?”

  1. Congress has now no right to rule in India. It seems they want all the “aam aadmi” to die. The way the policies are coming very soon India can be a slave country again.

  2. A good article i must say, but the time has come for all the general population to raise the voice against congress. Now writing is not enough,it’s time for revolution. We must come out of our houses. Requesting you to give your ideas to raise this issue on national level, so that we can protest against the government

  3. what r u talking?congress is ruling india for last 65 yrs.with support from indian & illegal migrant bangladeshi muslims,christians & converted tribal christians,dalits,sickularists,capitalists,corrupt bureaucrats,etc. etc.

    So,no chance of success in the near future. bye bye enemies.

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