Download PDF
Right now, Indian economy is going through a slump, and in the last few months we have seen Indian currency taking a massive hit reducing its value against dollar by nearly 20%. The growth projections for India's GDP have come down from earlier eight-plus percentages to six-plus percentages – some analysts have even predicted only a five-plus growth rate. Two months ago, petrol prices were hiked by eight rupees in a single day, the highest increase in Indian history, and already another hike is now announced. There could be an economic crisis ahead, but we are quite optimistic that this phase will be over soon and that we will go back to getting adjusted to the new and changed environment – that’s the Indian attitude towards solving all the problems – swalpa adjust maadi (adjust a little).
Some analysts attribute this sudden worsening of Indian economy to Euro crisis, while some others blame the policy-paralysis of UPA government. Many industry heads have been clamoring for Finance Minister of India to bring reforms hoping such an action will somehow bring India back on the track. And the UPA government has recently reacted to allow FDI into some of the sectors, which is being greeted enthusiastically by the industry body. But the essential question remains - is the root cause for our flailing economy the lack of reforms or is there something far more fundamental that needs to be corrected? If we take a look at Indian economy from a macro level we will notice something grossly wrong with the big picture, with the way we are headed, with the way we do things. There is something drastically wrong with our foundations.
Most Indians are not involved in producing goods of value. Instead, most of us are involved in trading, buying and selling stuff without actually producing anything. Since we are not producing enough as people, we are not earning enough as a country.
Right now, Indian economy is going through a slump, and in the last few months we have seen Indian currency taking a massive hit reducing its value against dollar by nearly 20%. The growth projections for India's GDP have come down from earlier eight-plus percentages to six-plus percentages – some analysts have even predicted only a five-plus growth rate. Two months ago, petrol prices were hiked by eight rupees in a single day, the highest increase in Indian history, and already another hike is now announced. There could be an economic crisis ahead, but we are quite optimistic that this phase will be over soon and that we will go back to getting adjusted to the new and changed environment – that’s the Indian attitude towards solving all the problems – swalpa adjust maadi (adjust a little).
Some analysts attribute this sudden worsening of Indian economy to Euro crisis, while some others blame the policy-paralysis of UPA government. Many industry heads have been clamoring for Finance Minister of India to bring reforms hoping such an action will somehow bring India back on the track. And the UPA government has recently reacted to allow FDI into some of the sectors, which is being greeted enthusiastically by the industry body. But the essential question remains - is the root cause for our flailing economy the lack of reforms or is there something far more fundamental that needs to be corrected? If we take a look at Indian economy from a macro level we will notice something grossly wrong with the big picture, with the way we are headed, with the way we do things. There is something drastically wrong with our foundations.
Most Indians are not involved in producing goods of value. Instead, most of us are involved in trading, buying and selling stuff without actually producing anything. Since we are not producing enough as people, we are not earning enough as a country.
