Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.This is an entirely free service. No payments are to be made.
The Modi government has completed two years in power. People seem to have mixed feelings about the government. There were sky high expectations in May 2014. The government had just taken over from the disastrous UPA regime. People genuinely believed that India was about to turn the corner. But that's not how things have turned out.
The promise of Acche Din has remained just that, a promise. Those who are in power today had promised the moon to voters before the elections. There's nothing surprising about that of course. But at that time, voters really believed it. Now, they are a dejected lot. And so they should be.
As per an article in Livemint, key economic indicators have not shown much improvement over the last two years. Consumer sentiment, business confidence, the purchasing manager's index (PMI), capacity utilisation, order book position, new project approvals are all still at the levels when the government took over... or lower.
Now this does not mean that the Modi government's performance has been a disaster. Two years may not be sufficient time to make informed judgements about economic performance. After all, India's economy is widely understood to be a slow moving elephant. Some things just take time. Unfortunately for the government, this reasoning does not cut ice with voters.
One thing is clear. This government has the ability to do better... much better. There can be no doubt that the government's performance has deteriorated in its second year. A fair and objective evaluation of its first year performance would have resulted in a B grade in our opinion. Sadly, the same evaluation of its second year performance would, most probably, result in a C grade.
Our verdict is clear. The time has come for a drastic turnaround in performance. We keep our fingers crossed.
For information on how to pick stocks that have the potential to deliver big returns, download our special report now!