Sunday, July 13, 2008


Recently ended G8 summit and India`s move a step forward towards nuke deal; has raised lot of hues in media locally and internationally. Indian growth story, despite of it`s current depression due to uncontrollable inflationary pressure, is gaining popularity. Political mileage is being extracted to maximum extent by the ruling parties and its allies. Though; the leftist have withdrawn their support, portraying a bleak outcome of the deal in future, for imaginary reasons, best understood by them. The Government seems to be unperturbed. For the common men, especially the educated urban people, the inflation and the nuke deal both are important but the former merits immediate attention.
The crude price is making record every passing day, breaking the previous high with no sign of respite, makes it impossible for India or any other developing nation to rein inflation. Indian growth story is passing, albeit hopefully for short period, though a bad time. But is the growth story consistent with reality? Is it true that India is likely to share same podium with US or any other European developed nation or far eastern Japan? I have the reason to believe it is utopian thinking.
Indian growth story is yet to touch no less than 70 per cent of its population. India has world largest population who lives on less than a dollar earning per day. It is understandable what does the nuke deal mean to them. No political party or the Government has ever taken any serious step to check its population growth; India is deluged by its unwanted population. A Government which is non-functional in common men`s life is only visible, when one visits any government office, police stations or hospitals. The corrupt hands of Indian Government open its fists only before the demanded doze of bribery. India ranks 74, two steps down since last year, among 180 countries of the world on worldwide Corruption Perception index this year. The data is prepared by independent international agency, Transparency International. It seems corruption growth is in tandem with economic growth in India. But please do not think it ever comes down with slow down of economic growth; rather the reverse is true.
Parallel economy runs in India with the official one. India alone ( though in a much smaller scale) have digested many sub-prime crisis with its nationalized banking system and fiscal support , just to cover the corrupt politicians or corrupt practices of funding political parties with black money. Here the Government projects undertaken with much doll drum, was defined by a journalist as’ bigger the project bigger the loot’. Even the assassinated ex- Prime minister, Late Rajiv Gandhi once confessed that government aids reaching to public reduces to only 10 per cent of the sum rest is being siphoned by corrupt officials, politicians and agencies. The picture is grimmer even today, probably worse. After all you never can have the actual data for such transaction. In Indian monetary system Rs120000 crores of unpaid taxes and Rs150000 crores of un- recovered loans from its nationalize banking system is floating alongside. In terms of the size of Indian economy it is comparable to few more sub-prime crises of US.
With money, capacity or consent to feed the corrupt power, average middle class Indian can afford to live a life with some standard comparable to his western counter part , no doubt but the quality of life is never comparable. In India, a chief executive has to negotiate the same roads with pot holes and slow traffic, in a Mercedes (the only difference!). The same polluted air, water or food he has to share with rest, money or his economical prosperity is of no use for that. The reservation policy what should have been done away with long ago is being revived with fresh vigor by the present government, as populist measure keeping an eye over the ensuing election in the next year; will hold back India for another 50 years or more, from its projected target by many decades away.
Indian growth story is a sham and drawn in a shoddy way. It is just spreading a fresh, colorful bed cover over the torn mattress on bed.


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