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Indian Economy is paying for Government incompetence

Even after withstanding the pressure of global economic recession, Indian economy has suddenly faced a downturn, with the GDP coming down to nearly 4.8%. When the top security experts of India and US are meeting to find out ways to combat global terrorism, such downward trend of GDP may create a churning.

The gross domestic product or GDP growth rate is an inevitable indicator of growth of the entire country and its citizens, as per laws of economics. We must not forget that we had been habituated in the growth rate in the vicinity of 8% for a couple of years before it had been curbed to 6.5% in 2012.

Let us attempt to compare some figures, recorded in CIA World Fact Book (based on the year 2012) at a time, when everyone has been emphasizing on developing global linkages and bilateral cooperation to challenge evolving security threats of metro cities, drug trafficking and various intercontinental crimes.

Our neighboring country Afghanistan has registered a GDP growth of 10.2. Even the figure 12.3% growth rate is shown for Mongolia. One may be amazed in learning that Bhutan has ensured 9.7%. The war-ridden Iraq has been able to manage an 8.4% GDP growth. We may applaud as we are much ahead of Sri Lanka (6.4%) and Bangladesh (6.1%). Our niggling neighbor, the communist country China has been able to record a growth of 7.8%.

The above quoted figures can clearly indicate the comparative position of India with others. If we try to delve into the problem, it clearly pinpoints at the pitfalls of the Central Government, which failed to serve as an efficient deterrent against such decay, though this Government is headed perhaps by the most proficient economist of the country.

We do apprehend that it is very difficult for a country like India to challenge such macroeconomic challenges, which have encountered several tarnished scams and corruptions of the highest stature in the last couple of years. It is also true that a segment of the allies, who are the major composition in the Government, did not allow the Government to take drastic decisions, which were necessary. Whether it is the pension bill or the insurance bill, the Congress had to depend upon the allies and some of them had played the role of opposition, in disguise. Instead of showing guts towards bold decisions, Congress has been awfully engaged in mollifying its allies.

Perhaps it is the decision taking inability exhibited by the Central Government that has inflicted maximum damage to our economy.

Whenever any country encounters some microeconomic challenges it becomes essential to earn the maximum mileage from its investments. If we look at the budget and the strategies of the planning commission, we can certainly understand that they have been desperate to maintain the vote-face by setting up pro-poor economic measures. When the country is facing such an economic commotion, does the food security bill sound feasible? The Government had announced various aids and grants.

Why can’t they think of bringing all such aids and grant altogether as an integrated BPL umbrella and increase its magnitude?

When most of the Government investments fail to show profit, even the private investors and the global investors lack confidence. It is really unfortunate that India is yet to formulate a rock solid strategy that ensures the highest Return on Investment irrespective of its sources, sizes and scales.

The newly formed Government after the General Election 2014 has to devise plans to surmount such inherent economic conflicts to advance our country India in the Global platform.

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