Tuesday, February 26, 2013

Montek and the Indian Economy

It was a very lazy day this Sunday. But while surfing the channels I stuck with an interesting debate on Headlines Today Channel, where the Economists, Students and Citizens are in debate with our Planning Commission Deputy Chairman Mr. Montek Singh Aluhwaliah.

I was thinking about him for a quite long time.. about his ideas, plans, implementations related to Economical growth / Economical Stability of India. Whenever I read his statements, I really impress at first and later realize the poor logic of his ideas. This is what happened this time too. Nothing changed

India is now undergoing a very very tough economical situation, but most of us are not aware of that. This is because of our Honorable Prime Minister Shri. Manmohan Singh and the Present Finance Minister Mr. P. Chidambaram are on the respective chair who never let the people know the toughest situation the nation passing now, and managing themselves with proper steps to keep the economy under control.
After Narasimha Rao & Manmohan Singh Combo; Manmohan Singh & Chidambaram Combo is the best pair of PM & FM. They done marvellous history on Indian Economy, without limelighting themself. They reduced the tax and brought several sector into tax regime, so that Government revenue increased. Controlled Government Spending and installed a check and balance mechanism to the Government Revenue. They also opened up the nation Globally, which now we are yielding its benefit by way of Rural development and Urbanisation equally throughout the nation.

You may be aware, that even during the worst of the worstest recession throughout the world, India was continuing its progressive economical growth with stability. That is because of these two people, who has the control and vision over Indian Economy.

Most of us won’t believe these facts, purely due to our own political wishes.

But this man, Montek always makes me surprise and ask myself, how he was placed at Planning Commission, whenever he announces something. Those may be funnier on first look but you can understand they are seriously cruel.

In the debate in "Headlines Today", he urged for improving Agriculture productivity. I applauded, but stopped immediately when he continued saying, Before taxing the Farmers, stop subsidizing them. Shocked. If you stop subsidy to agri sector and tax the farmers, how do you expect agricultural growth, when this nation always bargain the agri product prices? Agriculture is now surviving because of the Loans, Subsidy and tax benefits. Or otherwise, for the price guaranteed by the government, Agriculture business would have died a long back.  For example, Sugarcane’s Purchase Price by Government is around Rs. 1,000 per MT, whereas the production cost is about Rs. 2,200 per MT.  This is the case for all other crops. Paddy is too worst, and every Paddy farmer is pushed to the end of his life. Some suicided already, because of the losses.

Montek shows too happy that Rural Expenditure is growing, Government’s initiative to ease loan disbursement in Rural India is a hit and thus Rural Economy is growing and all.  I am not able to understand the logic behind this. For me, the situation what Mr. Montek is describing is something worryable. If Rural Expenditure is growing and Rural Loaning is also growing, it shows there is a decline of Rural Income. In simple words Spending grows because of Loans, or otherwise we can say, we are funding Loan for their spending. How it could be an impressive development of Rural India? I just cannot understand.

Montek wants the subsidies should go off. I too agree with this point but at certain extent. It cannot be applied to all the sectors. There are still some sectors (like Education, Medical, Agricultural, Transportation etc.,) which has to be subsidized by the government, to make it affordable by the common man. Because, India is not only a nation having people of richness, but there are people who cannot spend for a single food in three days time.

I fear Mr. Montek is seeing only people who are having appointed a person to put his shirt and not considering the people who are not having a Shirt at all.

This was confirmed, when he fixed the Below Poverty Line Limit. That was the funniest, foolish, ridiculous decision of any government.  When the question asked about this idiotic decision, Mr.Montek replied very cool, that the recommendation was given some five years back by Tendulkar committee and he implemented it as it is in condition (after five years!). Mr. Montek agreed that it is not practically acceptable now since the variation in Inflation and Statistical Expenditures are grown. Montek also clarified, Mr. Rangarajan Committee is now revisiting that policy and re working the issue. Its all ok, but don’t he never ever applied his mind when he implemented the ceiling to Below Poverty Line people? Who knows?
When the question on 'Aadhar Cards' came, his inability to answer properly is came to know to all. He says 'Aadhar Cards' are not  mandatorily necessary and the Number stores everything. It is the Home Ministry which insists for the Cards and Planning Commission has nothing to do with that.  Also when some one pointed out 'Aadhar Cards' are a duplication work, since Election ID, License, Passport, PAN etc., has the details of the citizen is there any need of Aadhar Card, he has no reasonable answer at all. It shows the money spent on Aadhar Card is utter waste and unwanted. What a Planning Sirji???

India’s current GDP is at 5.5% as against the average of 8% and target of 9.5%. So, the current situation is not bad and not so good. But, we have to make it stable and try to make it grow steadily. This challenge is taken care by Finance Minister and Prime Minister, and without any doubt, the results what we are getting is very positive.

But my fear is about the Planning Commission, which has no authority for implementing or directing but only able to find faults in everything. When they were asked for their opinion, they give rare of the rarest bad ideas, which makes people suffer a lot and get the government a hit on their back.

It is the high time, our Prime Minister to think about a better person for the post of Planning Commission who has the ability to control Indian Economy and having practical knowledge on Indian Economy & People Mentality. 

No comments:

Post a Comment