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Why does Indian economy continue to decline despite having a powerful Prime Minister and a strong government?
The economy is not struggling … business models are changing.
Let us see what is changing: –
It is often heard nowadays that the Indian economy is struggling. Think “Is the economy really struggling or are business models struggling?”
Some facts to consider
1) Car sales are decreasing… but Ola / Uber is increasing.
2) Restaurants are emptying … but home delivery is increasing
3) Students are not getting tuition classes but online studies are increasing.
4) Traders are struggling but online market sites and context-based direct sales are breaking all records.
5) Older commission based businesses are being tampered … but are getting online services at low cost.
6) Cell phone bills have come down and internet penetration is increasing.
7) Stagnant jobs (read “government jobs”) are declining but “start up” jobs offering equity and flexi time are expanding.
Job seekers are decreasing but job seekers are increasing. Working 40 hours a week for 40 years is a past trend. There is a tendency to work for a few years and spend quality time contributing to society.
If truth be told, what we are experiencing is a transition phase, and any infection is a set well and troubles for those living in the past.
It is challenging for those whose business models are based on ancient data…
This is a mystery to those who have never looked beyond traditional methods or opposed any kind of change.
The economy is not struggling … business models are changing.
Infrastructure is getting more, unlimited work and investment than before, jobs coming from there, which are mostly not government. Look at the figures in the Pradhan Mantri Awas Yojana, how much manpower and material and materials are being consumed in making so many houses.
How many government jobs are there in digital and communication sector, but most of the private sector and strips are investing and people are working and giving jobs to others too.
You are right that at this time our country has a powerful Prime Minister and a government with full majority. No doubt, but the truth is very bitter. For the last few years, the atmosphere in the country is such that no one wants to see the truth. The questions that have changed or changed our major issues.
You put your hands on your heart with truth and say why did you vote for this government? Things were different in 2014, but I am talking about the 2019 election.
What was the answer? Please tell the truth.
I think you may have found the answer that our issues were such that this development had nothing to do with the economy. While we had a track record of 5 years to decide what has happened and whether the economy is doing well. I am not saying that the issues we voted on were not right. They too were foolish and will remain, but the country runs with development and good economy. Will you be able to do anything when you have nothing to eat? No no
Economy strengthens the country, but we have moved towards some other direction. You must be wondering if the other party should be voted. This is a very big question, but if a government does not work in a democracy, then it is shown a way out in a democratic way. This is what happened in 2014. People were not happy with the government of that time, so the government changed.
In the last 5 years, the elected government took such decisions, due to which today the country is facing a severe economic recession. The government’s decisions are not only responsible for the economic downturn, there are also reasons for international sentiments.
It is a bitter fact that economic crisis is happening in the country due to the following reasons: –
Influence of any one person in the elected government of the country: We all know that the head of the country has great powers, but it is a fact that to run the reins of any country it is necessary to have a great team, so that the team Work can be done. When work is done in teamwork, the results are excellent. But here it was going upside down, big decisions were being taken without a team or a small team was making these decisions. My motive is not to make any party look bad but to talk about the country. A strong team is needed to make the right decisions. A wrong decision can degrade the economy of the country.
Demonetisation: This was a decision called bold step. For such a bold step, he needed a big heart in the head of our country, and he did it. But the question is not what he can or cannot do. The question is that a strong team was needed to take such a decision, by seriously researching the country’s economy and finalizing whether this decision would be right or not, but the government decided in a hurry. Even the head of the country’s main bank was not included in it. The question is how much research was done to take such a big step. We need to think seriously before making such decisions. This is easy to do if there is a majority government. But thinking about its outcome is more important than that. The people of the country cooperated and gave full support to the government in this demonetisation, thinking that it would be of great benefit to the country. But the result is very dangerous and against the government. What was targeted was not achieved. Due to this, the economy of the country was broken.
GST: A country seems very good to hear a tax, but this decision also made the country’s businessmen very sad and caused the weakness of the country’s economy. We have seen that there have been so many changes in gst that people did not understand. Instead of simplifying the tax system made it difficult. Kept the tax slab up to 28%. The gst refund was not getting or was getting delayed due to which the issue of liquidity was raised. Small businesses were also greatly affected by this. The gst return was made so difficult that the cast of the return file of the business people increased a lot. Late Fee has done so much which is going to harm the small businessman. It hurts if the tax reform is done in such a way that only the traders sit down. Where is the deficiency? The shortcoming was not in bringing gst, but gst was made harder than simple. The lack of coordination in the government is evident here. Team work was not shown here. What was the hurry if such a bad gst law was to be made?
Bank NPA: Due to lack of good growth in the economy, the bank defaulter increased due to which the bank money got stuck. Above Rs 10 lakh crore of the bank got stuck due to which the bank went into losses. Public sector bank suffered the most. This is shocking the economy. The government did not take strict steps. It is a failure of the government’s economic policies.
Foreign investment: That is investment, our country has decreased investment from outside countries, and the investment of investor of other countries in that country is also being withdrawn. Which has created an economic crisis in the country. The government has bad policies because of this. So many taxes have been levied. Investors are running away.
Rupee depreciation: The country’s rupee has been falling for the last few years, today it has crossed 72. The government needs to take right steps.
Reduction in employment: The country is going through a very big problem at this time, that problem is unemployment. The government of the country completely failed to generate employment. Economy works if there is demand but if there is no jobs then how will the demand increase? The government needs to make good decisions to increase employment.
Old Education Policy: The education system of the country is so bad that it is not able to survive in today’s era. Although it does not make a big impact in the economy, if education is according to today’s demand, then it helps in the right decision. But the government is not looking serious on this either.
Global Impact: Policies of foreign countries also affect the economy of the country.
Lack of good political will: If there is a turmoil in the politics of a country, the economy of that country cannot be right. Our country is based on public system. But the will power of our country’s politics is very bad. Here there is a lack of will to develop the country and strengthen the economy. Here politics is not on development but on religion. Due to which the work is done away from the real issues of the country, the real problems are standing. However, it also does not have a major impact on the economy. If politics is bad then wrong decisions will be taken or real problems will be ignored.
My conclusion on this subject is that if there is a strong prime and strong government in the country, then chances of good decision are made for the development and economy of the country, but a strong government is of no use if the political will is just vote bank. So far the strong government has failed. People need to think that our issue is not religion but development of the country and strengthening the economy. If our economy submerges, then there can be situations like starvation in the country. Why don’t we answer democratically to non-functioning governments? We should worry about the country. Our priorities should be development and economy of the country. The result of the 2019 election was very surprising because votes did not fall in the name of development but other issues were given priority.
But there is still time, a strong and strong government can get an opportunity to advance the country by bringing good political thinking.