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Economy in Shambles

Posted by Rahul Thapa
October 9, 2017

NOTE: This post has been self-published by the author. Anyone can write on Youth Ki Awaaz.

On reading the former Finance Minister Yashwant Sinhas’s letter one thing was palpable which was concern. When the BJP Government came with a thumping mandate in the 2014 general elections, I for one was very optimistic after all the BJP government is known for its business mindset. there was a potential glee in the new version of “India shining.”

Fast forward 2017 and one wonders wheres the electoral theme of “Acche Din” is gone, so much so I have received several memes of A(c)che meaning Pain and din meaning loud noise. However the Prime Minister still remains the most charismatic and willing leader whose vision and ideas can make the whole country stand up and take notice. However one wishes the same in the economic front.

The GST touted as the game changer, one that I personally think is far sighted towards a liberalized tax regime has proved to be a damper, what promised to institutionalize and bring tax uniformity made the tide turn against it. The various technicalities and also the nuances made it an ill timed abrupt and lackadaisical move. The governments note ban was another sad episode where a series of denominations accounting to 80% of the currency was wiped out overnight thanks to one simple speech and a promise to go behind black money, this caused extreme harassment to the general public and even banks, sadly many succumbed to heart attacks either through ill health thanks to serpentine lines or those shocked to see their unaccounted wealth being stripped of its worth.

With the civil unrest in the Middle East subsiding, economy in Saudi Arabia and Nigeria on the rise and most importantly the fall in the oil prices one expected the prices of LPG fuels, petrol and diesel to fall drastically, also the governments new policy of daily revision of the fuel pricing did offer good steed which was expected to liberalise the prices, and make it as per international parameters however there has only been continuous rise instead of the prices in spite of oil being 49.38 USD per barrel as per October 6, 2017. 

Agreed that it takes time for good things to show, the government must be given its due also for many reforms that included the modern transportation, increase reliance in non conventional fuels but the question is whether the sustenance actually matters for the common man.

The ill effects of demonetization is so demonic that it can still be felt, the GDP that once promised 8-8.5% growth has been degraded by credit agency Fitch and even the RBI. The surmounting NPA’s in banks in spite of governments schemes like mission Indradhanush shows how the policy has failed to assuage the moot point, add to this the politics of loan waiver in spite of RBI’s clear indications. Moreover the  Governments stubborn resistance to let go of its white elephants, Air India in particular with its high ending debts of Rs 60,000 crores only sums up the petulant and rigid attitude, adding to that its strategic disinvestment further aligning fears  of privatization in PSU’s.
The Prime Minister recently constituted an economic advisory council however in the words of the father of economics Adam Smith, one should know that economics isn’t chance “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.”
Only more stronger and resilient decisions are needed with greater consonance to turn this tide.
I have relied also on my own notes that i have read from various newspapers and periodicals.

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