Indian Economy and it’s shoddy affairs

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Indian economy is going through a rough patch, probably roughest than sublime crisis of 2008. In 2008, when developed economies were bleeding due to the economical crack down, India was able to maintain its growth and the fall in share market was broadly triggered due to funds withdrawal by the foreign institutional investors. FIIs were withdrawing funds because they needed those funds for their survival. But now things are different.

It’s not that share markets have fallen and they will never return to old heights. They will move up after a while but the real concern is the cracks exposed in Indian stock markets and economy. There are genuine concerns about the current state of affairs related to share market and current Indian state. Corruption is huge and systemic inefficiency still remains a challenge.  But if we look at last few years and analysis them to check if there were any major changes to trigger the growth, we won’t find any.

Probably we got carried away in last few years with all that success which we got at economical front. There are hardly any basic changes in system in the last 10 years and policy making largely depends upon the elections. For example FDI in retail is going to hang till elections in U.P are over. In a situation where governments are paralyzed by their own incompetence, expecting growth just to base it upon supply and demand is neither logical nor viable.

It’s not about stock market, it’s not even about economy, and it’s about the basic essence of a country where government and central bank complains about inflation and does nothing except raising interest rates which further increases the damage. There are hardly changes in our financial system to check the actual cause. We just can’t keep blaming global problems for our problem. Indians problems are related to corruption, inefficiency and don’t give a damn attitude of government rather than the problem happening elsewhere. Despite numerous broadcasts showing food grains being wasted and trashed across country, there are hardly any efforts being taken by the government to check the situation. Now who should be blamed for their high prices, I don’t think blaming economical slump in euro zone should be considered as a reason behind that.

A country where minister’s loyalty is not towards the country or their post but towards their party or coalition, it is unfair to expect them to do anything for the country. But India’s problem goes beyond it, the real problem exist deep rooted in the society where we still elect people at the name of cast and religion. It is simply unfair to expect these elected politicians to do anything for the country. And probably we don’t deserve it.

If Indian society doesn’t do the introspection, these problems will always exist, even if the current economical slowdown is tackled.  We need to go much beyond current economical problems, falling share markets and rupee against dollars. We need to do what is right even if that doesn’t solve the problem in the short term because that is bound helping us in long term.

System desperately need a complete restructuring in order to increase the pace of decision making, prevent wastage of food grains and improve money flow in the society to check black money issue. Unless until it is done, I don’t think it is fair to expect any long term improvement.

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