![\"rp_RKU-263x300.jpg\"](\"https:\/\/patriotsforumindia.com\/wp-content\/uploads\/2017\/01\/RKU-263x300.jpg\")
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Indian\u00a0 hopes of real rapid economic development after one party government\u00a0 have proved elusive . The hinduwadi government should have learnt from amongst the\u00a0 the first few stories of Mahabharat in which Arjun in Guru Dronacharya\u00a0 ashram only sees and focuses the eye of the bird with his bow and arrow while all others were distracted by view of\u00a0 the full bird ,foliage,\u00a0 tree etc . If like Arjun , the government had focussed only\u00a0 on rapid economic growth it could have achieved the genuine seven or eight percent industrial and economic growth . It faltered due to poor financial understanding and leadership and in desperation ended up with revising job and growth data to show phoney growth but stagnating industrial production and\u00a0 rising unemployment revealed the truth . It is widely believed that by the Vajpayee Manmohan era methodology of measuring economic growth our economic growth in the last four years has only been around 5.5 % per annum . The cumulative agriculture and industrial growth has been even slower\u00a0 . The tragedy is that this economic slow down and missing the great opportunity of catching up with China was totally avoidable .<\/p>\n
So what really went wrong and should be avoided by the next government ?<\/p>\n
In\u00a0 few words it was just the vanity , ignorance and\u00a0 inaptitude of the leaders and top bureaucracy\u00a0 handling the finance ministry that stymied the growth .<\/p>\n
The story of how a sincere and well proven PM got derailed and failed to kickstart the floundering Indian economy of 2014 needs to be studied and understood in detail so that the next government does not repeat the same mistakes and the nation does not lose another five valuable years.<\/p>\n
The first serious economic problem the new government successfully faced\u00a0 was runaway inflation . The food prices including dal , vegetable etc had hit the roof and the\u00a0 retail inflation was almost 10 % per annum in\u00a0 2012 and 2013 . To government’s\u00a0 credit both Pungaria at Niti Ayog and Raghuram Rajan in Reserve Bank and banks under the finance ministry followed the tight money policies by raising the RBI interest rates to 8 % and controlling the fiscal deficit . By March 2015 the retail inflation rate had came down to 5 % .The fear of inflation staging a come back haunted the government and it continued its tight money and the high interest rate policy even in2015-16. Inflation hit lowest figure of 3.6% in 2017 but government continued its version of responsible fiscal management policy ! It was really an irresponsible policy of restraint in spite of decreasing demand which could not stimulate the\u00a0 industrial growth.<\/p>\n
Persecution of Wealth and Job Creators :<\/p>\n
The nation chose a new government as it was sick of monthly Scam bulletins with 1.76 lakh crore coal scam at top followed by other mining , 3G bandwidth allotment scam etc . The current government did give a respite from the monthly scam bulletins .However opposition derided the new government with jibes like Suitboot Ki Sarkar or Ambani ki Sarkar etc.. The defeat in Delhi and Bihar elections made politics the top priority of the government\u00a0 .To prove opposition wrong\u00a0 wrong and for raising the tax revenues government started vigorous persecution of the industrialist and other wealth and job creators . It set a panic wave and led to exodus of rich men from India . The massive investment made in increasing capacity based on UPA 1 growth started failing as the economy nose dived after MNREGA etc and GDP GROWTH FELL FROM 10% II 2010 TO 4 % 2012 . The electricity ,coal and gas shortage and lack of demand\u00a0 halted the private\u00a0 investment in India totally . Taxing foreign investors like Vodafone from backdate ( retrospectively) did not increase our reputation abroad . Since new Industries were not opening old industries or tax paying individuals were asked to pay\u00a0 more taxes to\u00a0 meet tax collection targets which got nicknamed as Tax Terrorism . Private sector just stopped investing in India . Capital formation declined from peak of 17.5% in 2004-5 to 4.5% in 2012-16. While the government investment in infrastructure improved but it was not sufficient to spur demand or growth.\u00a0 But it was too little and industrial growth declined\u00a0expectedly\u00a0.<\/p>\n
Persecution of The ‘Doers’ \u00a0in Bureaucracy :<\/p>\n
Rapid development needs experienced expert risk takers . The government chased the mirage of transparency and Black money . Audit ,CBI \/CVC\/ED\/ IT Raj have never achieved growth anywhere in world . Roosvelt threatened to pack Supreme court with his judges to implement New Deal. These bodies ruled the bureaucracy , sucked the existing industries and killed private investment . Without industrial development\u00a0 new job creation stopped and instead government advised youth to sell Pakodas !<\/p>\n
We need to restore confidence amongst industrialists , increase demand byconsiderably \u00a0increasing the productive expenditure even if by deficit financing . Inflation needs to be controlled by increasing supply if necessary by imports . We have to increase our industrial competitiveness as in free trade regime we are not able to control imports or increase exports.<\/p>\n
In all government has to be a partner in growth with industry a task Babus are just not capable of doing . Their role in economy and defence needs to be reduced .<\/p>\n
At the end Chinese aggressiveness \u00a0cannot be controlled unless atleast we do not let the gap increase any further . An 8.5 %<\/p>\n
growth rate ( by new formula or 7 % old formula ) is the bare minimum requirement .<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Slow Down Of Indian Economy : \u091c\u092c \u0938\u095c\u0915 , \u092c\u093f\u091c\u0932\u0940 ,\u0915\u094b\u092f\u0932\u093e \u0935\u094d \u0935\u093f\u0926\u0947\u0936 \u0928\u0940\u0924\u093f \u0907\u0924\u0928\u0940… more