For years India has been seen as one most promising economies in world. But things are changing swiftly and India is losing its position in world economy mainly in minds of the investors. It is not that the basics of India's economic growth story have changed. No it has not changed. The basics are the same and now that have become problem for Indian economy. It is true that India as an economic destination has huge potential and also strengths as well. But only India being a promising and place of huge opportunities cannot help us.
The Indian economy has been mismanaged for sometime. Since times of NDA govt. There was a forecast food inflation and problems in agricultural sector mainly stagnation in 2003 itself but the then NDA govt. was busy in promoting Indian Shining than planning for future. Then came UPA govt. That too was busy distributing money to farmers to the amount of INR 76000 crores so that they can get out of debt trap in form loan waiver. Govt waived off those loans that were taken for purchasing bikes and other consumer durable products in the name agricultural loans by using Kisan Credit Card facility. Govt instead of capacity creation and infrastructure development in agricultural sector preferred to appease the people. A mindless decision. There is no positive change in farmer’s suicides.
When inflation crossed 10% mark govt started saying to people that they should eat 2 breads instead of 3 breads a day by making money costlier. I agree that it was need of hour but can a fiscal problem be solved by monetary tightening. I think no and I am sure you too agree with this. Govt did nothing to infrastructure development and capacity creation.
This govt since it came into power led Prime minister Man Mohan Singh promised and increased the level of expectations of business world and the whole world that this govt will do some for betterment of Indian economy. But this govt failed to anything significant on economic front. There had been no policy decisions and if it takes any decisions then those are mindless decisions.
Govt could have taken some important decisions if it had taken BJP into confidence but it wanted to show its strengths to the people and result is that govt was forced to back track. It could have successfully passed FDI in retail and aviation sector but its mindless and arrogance led to deadlock of parliament and FDI being put on back burner. When Indian economy needs huge money to expand but the govt. became egoist just to satisfy its ego. And result is policy indecision as it know it cannot pass any bill or take any important policy decision alone and it is not agree to share some policy decision with opposition BJP that too have same economic policy as Congress have.
Investors are losing confidence in India’s Growth Story. GDP growth may fall below 7% for 2011-2012 year. May be at 6.9%. Weak, arrogant and mindless govt to blame, Policy indecision is hurting the nation most. Govt is spending money for windfalls instead of capacity creation and infrastructure development…….