India Lost a Big Chance of Economic Growth: Dr Manmohan Singh
The former Prime Minister
has written an article on the current economic scenario in renowned news paper
last week. The writes-up was in limelight among the people. The only things of
this article had been in discussion which was targeting PM Modi directly. Or to
say, “ the former Prime Minister Manmohan Singh’s attack on Modi government or
Manmohan Singh premonished Modi government that the economy cannot run by PR or
headlines”. However Manmohan Singh had said in this writes up that his
statement in this article should not be taken as of mere leader of opposition
because the talk is based only like a student of economics and as a citizen of
India.
Manmohan Singh is former
prime minister and the senior leader of congress party, in such condition the
article shall have naturally a discussion of political side, but his write up
do have an economic importance too.
The conclusion of the
article can be analysed in this way point wise.
Losing confidence on every step
Mr Singh said in
his write up that “the unemployment in the country is at its maximum during the
last 45 years of any tenure. the GDP growth is the lowest since last 15 years.
The banks NPA is at its highest. The electricity production is lowest in the
last 15 years and the consumption rate is the lowest of last four
decades”. He adds that All the data tell
just the condition of economy, but the government’s working system is in the
origin of economic problem. “The economic condition of a country shows the
image of its social position too; and how the relation floats for the economic
growth between the society and the institutions, he said, is an important factor, but this government
has lost its credence for this purpose among the people. Many entrepreneurs
have told me that they are fearsome of government agencies.”
Manmohan ratifies that the
atmosphere of fear and doubt is a constant element of Modi government working
system. All the leads to this system are working under the fear, which could
have been helpful to the growth of economy in the absence of fear. He gives
example that the bankers are afraid of giving the loans lest they to be the
target, and the entrepreneurs’ investing are afraid of government agencies.
Write-up says that the
situation is so that media, regulatory agencies, investigative agencies all are
constantly losing their confidence among the people, and they fear if they
shall be implicated intentionally for the tax payment; where will they go for
relief then. This factor is affecting entrepreneur and the businessmen because
they are not in mood to take any risk. Such prevailed behavior on large is
damaging the economic growth.
Even he adds in his article
that from the famous economist, Adam Smith, upto now all the economists agree
that the mutual confidence and the strong social networking both are the
important factor the economic growth, but the running government is fail on the
both fronts. The social networking’s cracks and the lacks of mutual confidence
are one of the big reasons to the current economic crises.
Contemplating all the projects and the schemes of former governments doubtful
The running
government contemplates doubtful all the policies of the former governments. He
writes that Narendra Modi government feels or it tries to show that the every
policies of the former governments had some foul intention. Such as the loans
were given in the tenure of former governments are contemplated doubtful and
were to benefit somebody's.He thinks that this government resort the way doubt
on every issues and then itself displays as the protector that it is going to
correct every former action taken.
Manmohan accepts that the
result of these is that the government has adopted the attitude way like an
ideal police on policy matter, which emerged a suicidal step like
demonetization.
According to Manmohan Singh,
contemplating to everybody doubtful and repeatedly speaking theory of ‘Good
Governance Vs Bad Governance’ are not correct for economic health. The
criticism of policy matter of every former governments breaks the continuity of
policies which eventually affects over the economic health.
Policy makers are confused to speak the truth
Manmohan Singh
accepts that the established intention to term the Modi government’s
administration better than others is affecting all the system of executive
body. The article is indicating that instead of knowing reality by hearing the
government’s officials and the policy makers the government expects from all
the system that the policies of this government they tell better and clean than former governments.
The analysis of Manmohan’s
write-up tells that the atmosphere in the government is so that the gentlemen
connected to the policy making evade speaking the truth. Either they keep
silence on several issues or they follow the path of government.
If we see apart from the
article, it appears rather correct. The well known economists during the two
tenure of modi government did not agreed upon with the Modi government. Arvind
Pangadhiya and Arvind Subramanium like economists after leaving their post had
criticized the Modi government on several issues. Moreover Raghuram Rajan, Urjit Patel, Viral Acharya
like economists whenever warned the modi government, they faced the BJP leaders
and the ministers' slipshod speaking. These leaders were never forbidden so in
this way the working with the government Policy makers are jitter to speak the
truth.
‘Stagflation’--
or so to say declining consumption; yet the price hike is going up!
Manmohan Singh’s article
emphasis over the working system of government, the economic aspects of social
establishment and the policy vision, but he talks purely on the issue of
dearness. He thinks that the consumption is stagnant and the unemployment is
constantly rising both conditions are worth of reviewing in the wake of retail
price hike. He told the constant price hike in edible items are endangering
situation. He use the economic word for this purpose ‘stagflation’. The stagflation
is the situation when there is no increase in demands; the retail price hike is
going up.
According to Manmohan Singh, if an economy is
under the trap of stagflation, it cannot overcome easily from this crisis.
However, it also has been
metioned in this article that there is no such situation in India, but there is
the need to enhance the consumption by the monetary policy and by social policy
the private investment should be promoted. The meaning of social policy is that
they should be taken in confidence all the sharing men who are responsible for
the economy. The fear and the doubt shall be away then the economy shall
accelerate.
India lost a big chance of economic growth
Manmohan says that the
slowdown in economy is the self-called recession. He accepts that the India had
big chance for the slowdown in china’s economy that it could accelerate its
economy well. He says that if the government had overcome from the fearsome atmosphere
and would have shown the policy alertness, India had a chance to enhance its
exports.
Dr Singh accepts that the
slowdown in china’s economy, slump in price of crude oil and majority mandate
in parliament—all had provided such a chance to the government which comes once
after generations. Incase the chance could have been taken seriously, there
were causes to create employment at
large scale and it could reach at the doorstep of new economic reform. Dr Singh
giving the advice to the PM says that the entrepreneurs and the businessmen
should be taken in confidence taking out them from the fear and doubt. Moreover
there is need to make a confidence among the society because all these things
shall bring out india from the economic
slowdown.
