Why UPA-2 is perceived as one of the worst government in Independent India?

The United Progressive Alliance (UPA) II, led by the Indian National Congress with Dr. Manmohan Singh as the Prime Minister, governed India from 2009 to 2014. This period was marked by significant economic challenges, high-profile corruption scandals, policy paralysis, and several terror attacks, all contributing to widespread criticism of the regime. While the UPA II administration achieved some notable successes, its tenure is often remembered for the problems it faced and the controversies it generated.

Economic Slowdown

One of the most pressing issues during the UPA II regime was the economic slowdown. India, which had experienced robust growth rates in the previous decade, saw its economic momentum falter. The GDP growth rate declined from 8.5% in 2010-2011 to 4.7% in 2013-2014. Several factors contributed to this downturn:

  1. High Inflation: Inflation, measured by the Consumer Price Index (CPI), was persistently high during the UPA II term. It peaked at 11.99% in 2010 and remained above 9% for most of the subsequent years, affecting the purchasing power of the common man and leading to widespread dissatisfaction.
  2. Fiscal Deficit: The fiscal deficit remained high, driven by increased government spending and subsidies, which strained the economy. The fiscal deficit as a percentage of GDP was 6.5% in 2009-2010 and hovered around 4.8% in 2013-2014.
  3. Industrial Slowdown: Industrial production slowed significantly, with key sectors such as manufacturing and mining experiencing stagnation. This was partly due to delays in project approvals, regulatory hurdles, and a lack of investor confidence.

Corruption Scandals

The UPA II administration was marred by several high-profile corruption scandals that severely dented its credibility:

  1. 2G Spectrum Scam: This scandal involved the alleged underpricing of 2G spectrum licenses, resulting in an estimated loss of $28 billion to the exchequer. The irregularities in the allocation process led to widespread outrage and legal battles.
  2. Coal Allocation Scam: Known as “Coalgate,” this scandal involved the arbitrary allocation of coal blocks to private companies without a transparent bidding process. The Comptroller and Auditor General (CAG) estimated the loss to the exchequer at around $34 billion.
  3. Commonwealth Games Scam: The organization of the 2010 Commonwealth Games in Delhi was riddled with allegations of financial mismanagement and corruption. The inflated costs and misappropriation of funds sparked public outrage and legal scrutiny.

Policy Paralysis

The UPA II government faced accusations of policy paralysis, where key economic reforms and policy decisions were delayed or stalled. This was attributed to internal disagreements within the coalition, bureaucratic inefficiency, and a lack of decisive leadership. The paralysis affected various sectors, including infrastructure, manufacturing, and services, leading to a decline in investor confidence and economic growth.

Inflation and Unemployment

High inflation was a significant issue during the UPA II term, particularly in food prices. The inflation rate remained above 9% for most of the period, peaking at 11.99% in 2010. This high inflation eroded the real incomes of the population and created economic hardships.

Unemployment rates remained relatively stable, fluctuating around 5.5% to 5.6%. However, the combination of high inflation and economic slowdown exacerbated the challenges faced by the workforce, particularly in terms of job creation and wage growth.

Political Instability and Governance Issues

The coalition nature of the UPA II government led to frequent political tussles and instability. Governance was often seen as ineffective, with bureaucratic inefficiency and corruption further compounding the challenges. The government’s inability to address key economic and social issues effectively led to growing public discontent.

Public Protests and Movements

The period saw significant public unrest, including the Anna Hazare-led anti-corruption movement. Hazare’s hunger strikes and mass protests highlighted the demand for greater transparency and accountability in governance. The movement gained massive support across the country and played a crucial role in bringing the issue of corruption to the forefront of national discourse.

Terror Attacks

The UPA II term was also marked by several terror attacks, which highlighted vulnerabilities in India’s security apparatus:

  1. 26/11 Mumbai Attacks (2008): Although occurring just before the official start of the UPA II term, the aftermath and response to the 26/11 attacks were significant. The attacks exposed lapses in intelligence and coastal security, leading to a reassessment of counter-terrorism strategies.
  2. Pune German Bakery Blast (2010): A bomb explosion at the German Bakery in Pune killed 17 people and injured over 60. The attack was attributed to the Indian Mujahideen, and it underscored the ongoing threat of domestic terrorism.
  3. 2011 Mumbai Bombings: Triple bomb blasts in Mumbai killed 26 people and injured over 130. The attacks raised concerns about the effectiveness of intelligence and law enforcement agencies.
  4. Delhi High Court Bombing (2011): A powerful bomb explosion outside the Delhi High Court killed 15 people and injured over 70. The incident highlighted vulnerabilities in urban security and the need for better counter-terrorism measures.

Decline in Investor Confidence

Due to policy uncertainties, corruption scandals, and economic slowdown, investor confidence took a hit during the UPA II term. Foreign direct investment (FDI) inflows declined, and there was a noticeable slowdown in private sector investment. The lack of a clear policy direction and the perception of widespread corruption further dampened investor sentiment.

Conclusion

The UPA II regime’s tenure from 2009 to 2014 was marked by significant challenges and controversies. High inflation, economic slowdown, and high-profile corruption scandals created an environment of discontent and distrust. Policy paralysis, political instability, and governance issues further compounded the problems, leading to a decline in investor confidence and public support. The terror attacks during this period highlighted vulnerabilities in India’s security apparatus and the ongoing threat of domestic terrorism.

Despite some achievements, the UPA II term is often remembered for its economic and political challenges. The combination of these factors contributed to the perception of the UPA II regime as one of the most troubled periods in India’s post-independence history. The subsequent general elections in 2014 saw a significant shift in political power, with the Bharatiya Janata Party (BJP) led by Narendra Modi winning a decisive mandate, reflecting the desire for change among the Indian electorate.

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