Finally back into my writing boots, holding the pen once
again, yes I did write this on paper first, I am back after a void of some
fifteen days. A lot has happened in these fifteen or so days. Time has taken
its toll upon me and my ideologies. Parting myself from some ideas that were no
more than a fad, I have moved on in life….Ah! Abstaining myself from indulging
into serious philosophies of life let me put forth the second part, or call it
the sequel, the sociological approach to Indian economic condition, Bharat Mata Ki Jai(II): The intricate economic web.
I concluded my last article BMKJ(I), with a promise to include
the heavy weighted terms of Sociological perspective and approach, Inflation, Deficit, Subbarao etc. But merely
placing them in a fancy statement would never fulfil their actual job.
To understand the Indian policy paralysis, or call it the economic slowdown of
the nation, we need to realize that this country as a whole is a system which
is interdependent and thus is very fragile. The first very obvious
question that may come to your mind is that why a drop as low as ₹56 a $? The
most potent cause to this is the Eurozone debt crisis which has caused the tremendous
weakening of Euro and hence in other perspective a comparative strengthening of
dollar against other currencies, which includes Indian rupee. But nowhere does
this dropping of Indian rupee states that we are in a crisis. This is a global
situation wherein such effects are faced by every other nation. The platform might be dropped but why do we
fail to realize that we all are standing on the same platform even now? The
previous IMF chief the waitress-assaulter Strauss Kahn said in an exclusive
interview that India is one of the strongest and dynamically growing economies
at present. Because of the ferocious potential that we Indians possess, all we
have in hand right now is a little concern but NOT at all a CRISIS. Anyways, as
a matter of fact, Indian Rupee is stronger that Japanese Yen (Any comments??).
The current economic situation is an assembled model of many
centrally important issues. To present an inception lets pounder on Subsidies.
These are the financial support that the government, both centre as well as
state provides, on agricultural production activities, petroleum and oil etc…
If we look into the total cost of subsidies provided by government in the year
2011-12, it sums up to a mammoth ₹1.8 lakh crore. Almost efficiently
comparable to the defence budget of our country (₹1.9 lakh crore). As per my
personal views I believe this is too much of money to be given cheeringly to
the corrupt, as that is where most of it goes. The government has a poor PDS
system, unable to counter even a fake ration card problem. Talk about Rajasthan
where the net productivity of wheat is around 69.5 metric tonnes per season but
available quantity in sacks, to store them is merely 25 metric tonnes. Can you believe
the rest of the wheat either deteriorates on railway stations or in overflowing
granaries? Why so much of subsidies for higher yield, when you can’t even store
it. This is simply a waste of money. Rural development minister Jairam Ramesh
recently said in an interview that the government should remove the petroleum
subsidy. But soon this was covered under the veil of political agendas and propagandas.
Now let’s take a toll on the auspicious sentiments of our
fellow respected Indian citizens, privileging themselves in prestigious offices
of Finance ministry and Central Bank. There had always been a discontent and a
clash of ideas between the present RBI Governor Subbaro and our past Finance
minister Parnabda. The latter requested him many times to reduce the interest
rates(Repo rates- at which banks lend from RBI), to curb the investment
sentiment prevailing among the public, but the former never gave him a look
more than that of ignorance. Subbaro comments, that the rates were higher in
2008-09 but the GDP growth rate was higher than. What needs to be checked are
the government policies. While as for now Pranaba orates his first Presidential
speech and relaxes in the presidential office, we can hope Shinde to infuse the
negative miasma that prevails in the street joining Finance ministry and RBI.
Another potent reason that I feel is the government’s
decision to prevent the entry of foreign Investment of higher celling’s in
multi retail sector. This is again the display of another infant industry approach
adopted by the government like the one adopted in late 1980’s. You will keep
arguing that we need time to grow while other infants will face the
competitions and grow in the rat-race environment. But all this doesn’t stop
here, the government is not only allowing foreign investment but is also
planning to tax the somewhat present investors to settle its CAD(Current
account deficit). In the Vodafone case, for a transfer of rights, Vodafone is
charged of rupee 11,000 crore tax. Moreover they are providing to IMF, a relief
package of ₹55,000 for Eurozone crisis, but kicking Mrs. Banerjee's proposal of a state relief fund. Then the horrific
appearance of GAAR in the dreams of enthusiastic foreign investors is driving
the optimism out of their nose. In such a scenario the government should allow
FDI in multi brand retail, banking, aviation and keep cases like Vodafone out
of their box, otherwise we will even loose out current investors.
To compile everything into a machine code,what I wrote plus what I cannot, considering your temperament to engulf this boring stuff, now let’s try to take the
help of our special characters…
CUT RATES TO CURB INFLATION>>DEISEL DEREGULATION AND
CONTROL>>PREVENT FINANCIAL PACKAGES>>PREVENT HIGH FLOATING
SUBSIDIES>>ALLOW FDI>>CONROLL CAD>>REVIVE TELECOM AND MINIG
SECOTR>>CURB NEGATIVE SENTIMENTS ABOUT ECONOMY SPREAD IN SOCEITY.
That’s how I perceive this…
Bharat maata ki Bharat maata ki bolo jai bolo jai bharat
maata ki jai….
Thanks for Reading..
Have a nice day…
