Tuesday, July 10, 2018

Is there going to be repeat?

The Indian economy was near collapse in 2014, said Prime Minister Narendra Modi. "We all knew that the economy was in the doldrums but since were not in government, we naturally did not have the complete details of the state of the economy. But, what we saw when we formed the government left us shocked! The state of the economy was much worse than expected. Things were terrible. Even the budget figures were terrible," he said in an interview recently. Why has he not filed criminal cases against the perpetrators. The country is spending billions of rupees trying to extradite Vijay Mallya from the UK, who is accused of pocketing Rs 90 billion, but politicians who misused trillions of rupees of taxpayer money are still strutting around New Delhi. Maybe because he could face the same charges if he should lose next year's general elections. Economic indicators on the 4 years of Modi government seem pretty good, with growth at 7.4%, shares at near record levels, foreign exchange reserves at over $400 billion, retail inflation at comfortable level and rising foreign investment. That being the case, why is the rupee the worst performing currency among emerging market economies? A falling rupee may help exports but there is a risk of inflation and more money fleeing from India, wrote A Iyer. A growing economy is not creating as many jobs as expected, wrote R Mazumdar. This government has been choking information under the Right to Information Act. Civil servants are delaying information or simply refusing to supply any. People are gradually giving up trying to get any information out of the government. The government has not been appointing commissioners to the Central Information Commission so this body will gradually cease to function. The Lieutenant Governor of Delhi, appointed by the Central government, has been blocking the functioning of the elected government in Delhi, because it is formed by the Aam Aadmi Party. The Supreme Court said that the Governor must function according to the advice of the elected government. Civil servants have been withholding information on vital services, such as education, health and delivery of rations to the poor, wrote A Marlena. Foreign policy has been reduced to serial hugging. After nice words with Donald Trump, the US has gone back to supporting Pakistan, the 2+2 dialogue has been postponed and India may incur sanctions if it buys Iranian oil or the Russian S400 missile defense system, wrote S Haider. Neighboring countries are using China to give a bloody nose to India. If oil becomes more expensive, as some are predicting, or if the rupee falls even lower, we could be worse off than in 2014. When you point a finger at another.... 

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