Indian Economy: Worrisome Situation

Posted by tony meena on January 18th, 2019

Indian Economy Critical Status

Efforts have been made to create a dynamic, speedless economy of India in the pre-independence era by the planned economic program after independence. As a result, a strong base of the industrial structure has been created, foreign trade has increased 90-fold. There has been a rapid increase in yield by the Green Revolution in agriculture, there have been revolutionary changes in the transport and communication system. The use of new technology has increased due to the economic reforms implemented in the last 13 years. India's export and foreign capital reserves have increased and there is a favorable adjustment in the balance of payments, even after half a century of independence has passed, some problems of the Indian economy remain alive, on which every Indian should seriously consider.

The palaces of pleasant dreams of "poverty eradication" and "self-reliance" are collapsing in the thunderstorms of economic difficulties. The country is growing in direction-direction, every person is upset, inflation, unemployment, inflation, black money, and corruption are troubling people and the symptoms of widespread dissatisfaction are seen due to exploitation, totalitarianism, anarchy, and criminality. Most of the policymakers of the country are power-conscious, corrupt and discriminative, so the Indian economy is not only a miserable but also directionality, therefore, an objective analysis of the problems of our economy is necessary. We have to consider that AM How can this statement of Khusro be meaningful to us, "the 19th century was from Britain, the 20th century is of the United States, and the 21st century will be written in India." Indeed today the rising of our economy is constantly rising - "unemployment ". The industrial recession is enclosing us, the rupee is declining as a fall seal currency, the export rate is declining, the stubborn fiscal deficit, the industry chamber sitting with hundreds of entities, and despite the inflation data, the purchasing -Poor people struggling in the absence of power. According to the United Nations Development Program Report, we have moved from 124 to 127 countries in 175 countries. There are only 25 crore hungry people in the world, 40 million children are deprived of education. This picture of the economy for our policy-makers, who advocated globalization and liberalization, indicates its entire structure and understanding the important aspects of the problem.

Poor and economic inequality

We wanted Swaraj so that we could do the sunrise but despite the adoption of our mixed economy after independence, the inequality of income and property in the countrymen has increased steadily today, 0.5% people have deposited 10% of the wealth of the country. And above 8% of people own 50% of the property, while 60% of the people have only 10% of the total national income. Despite land reforms, there is inequality in relation to land distribution, 39% of the rural population owns only 5% of the land, whereas 8% of the prosperous farmer 46% of the land is occupied. Where multinationals pay a million rupees annually to a manager, a daily wage laborer gets 40 to 50 rupees per day wages. In the last 40 years, the property of Tata Birla has increased 40 times, while still, 29.8% are living below the poverty line, which is not available to wear food and wear cloth. Thus, this thinking of the beginning of the Five Year Plan has proved to be inflexible that 'planned development will be of a socialist nature, in which the poorest sections will get priority.' Just as the economies of the whole world are running and running economic inequalities and development gap between poor countries and rich countries is increasing rapidly, rather than decreasing the gap between the rich and the poor in India. Is going A lot of people have immense wealth in the country, while the second and the poor have poorness, hunger, harassment, illiteracy, and disease. For those who live below poverty, half-stomach food, broken pottery, yellow bones, yellow eyes, dry skins, boiled feet, dead body, and dark eyes, deep humility and despair are the real stories of them. We considered the growth of economic growth to be gross National Income (GNP), But it did not sunrise. The developments of India established that the maximum growth rate will be the economic development of the country. He could not liberate us from poverty, unemployment, income inequality, and exploitation, but instead moved towards the opposite direction. So now we have to seriously reconsider the structure of the Indian economy so that all the participants are involved in the production and distribution of the economy and the impact of economic development can be seen in enhancing the strength of all the people's health, education, and skill-based employment. It will not only need to look at the economic framework, which is based on equality but in a positive relationship between growth and equality, and this will require nation-wide thinking.

Unemployment

The five economic monsters of the world are bent on suppressing human beings - poverty, disease, ignorance, dirt, and unemployment, but the most fierce among them is - unemployment because it is the artery providing blood to the economic potential of a person. Though efforts have been made to remove unemployment in India, today the open unemployment of the country, invisible unemployment, unstable unemployment, cyclical unemployment, educated unemployment, and technical unemployment are all present and in some form 25 million people are unemployed. New policies were announced from time to time to provide employment to India's Five Year Plans and various types of programs were also conducted; But even today, more than a third of the total labor force is unemployed, while the government has targeted to provide employment in the 12th Five Year Plan. According to the Planning Commission, 4% employment growth is required every year to provide employment, while presently this growth rate is 2.50%. Therefore it is necessary to increase the growth rate, it is possible only if the domestic product rate is 8%, but modern, the use of techniques, employment as a result of the entry of MNCs. Due to the decline of domestic industries, due to layoffs from PSUs, unemployment in the country Will increase. Therefore, in the coming time, unemployment is high. Therefore, there is a need to keep control over another population, and on the other hand, to create an employment-oriented economy, it is also necessary for a deeper revision of the Indian economy.

Inflation and downward inflation

Inflation had reached 16.4 percent in 1991. But due to economic reform programs, it now flips between 6 to 8 percent. Inflation has been controlled, yet inflation is on the rise. Whose main kill falls on poor people. The budget deficit of the central government and regional governments is also increasing as compared to the gross domestic product. Similarly, the government's annual fiscal deficit has started reaching more than Rs. 5 crores. Based on the recommendations of the Sixth Pay Commission, we have been constrained to increase the excessive salary of the employees of the public sector by adding 61% dearness allowance to the wages, emptying the treasury, increasing inflation and taking foreign loans for development works. This is a sign of the weakening of the country's economy and adversity of the common man. Therefore, where there is a question of raising another gross production, the other is the challenge to make it self-reliant, increase capitalist investment and stutter the wastage.

Problems of Foreign and Indigenous Debt

We had already extinguished foreign exchange reserves in 1957 and after that, we continued to increase foreign debt continuously. In our plans, we made big industries of the public sector not only on foreign technology but on foreign capital and for that we took loan-by-loan. Apart from 1972-73 and 1976-77, the balance of payments in foreign trade has never been in our favor. In 1996 we asked for the loan from the International Monetary Fund (IMF). As of 2012, the total external debt has gone up to more than 20% of GDP.

Today, the burden of payment of interest of foreign loan to every Indian only Rs 1000 More than Thus, due to lack of uniformity in export of Indian goods, depreciation of rupees and due to rising foreign and indigenous debt and interest, the Indian economy is trapped like a poor person, deprived and deprived of production benefits. On the public level, strict financial discipline, control over unnecessary consumption and rapid expansion of exports can only be avoided by the vicious circle of foreign and indigenous debt.

Hinnorth Management Problem of Deficit Financing

We have made Indian Five Year Plans based on the economics of our budget deficit due to wastage of the non-performing works, the abduction of the fixed amount by corruption in the public finances, and thus the lack of capital. This financial management of the deficit economy ultimately increases the vicious cycle of inflation, inflation etc. It can be the only rigid financial discipline in unproductive areas, which depends on deep political will.

Black Money

Even today, the economy is a developed economy on black money. Which is the sign of the downfall of our moral character? Due to stealing, profiteering, corruption, smuggling, and taxation in the country, black money has increased so much that the big economy is running on black money only. Today more than 40% of the country is black money, which is more than Rs. From time to time, the government has announced plans to bring this black money out; But the speed at which it is an attempt to convert it into regular wealth is the fastest line of black money. Thus black money affects the financial discipline of the country, its maximum use and eventually produces a lack of capital. To reduce black money, constructing ethical character and better taxation is a suitable solution. Money laundering bill has also been passed in this regard.

Globalization pressure

Under economic reform, India has opened its door to foreign capital and investors. Being a member of the World Trade Organization, India has evolved into the largest market for foreign companies. There is constant foreign pressure on India. What are the vulture figures of American companies on the Indian market, its origin is from Nim, Turmeric and Basmati Rice patent disputes? Actually, we need to amend the contract with the WTO because it requires the country to import 3% of its total food consumption that is contrary to food self-sufficiency. There is a need to seriously consider the problem of increasing the interest of the domestic industries in current tariff rates.

Challenges to recast the economy

In fact, after independence, we have developed an all-around economy level; But considering the existing human and physical resources of the country, the equality-oriented, non-exploitation-based ethics has not developed a balanced economy. We got entangled by the economies of developed countries only through the first five-year plan. After this, we adopted the economy based on liberalization and bowed before capital and developed a technology-based economy and Patanjali parity and labor-based sunrise economy. Therefore, we need to re-think with a deeper view of Indian resources and problems of the ongoing Indian economy.

If we reduce government expenditure, according to the suggestions of the American Senate, improvements in the services of human development like education and health, are greatly encouraged, especially for agriculture and small industries. Reduce subsidy, develop healthy competition in industries, improve indirect tax structure for revenue growth and instead of corruption, in place of disciplined and honest work culture in the country, then we can speed up the development of the country's economy. Can bring.  (Written By Ashish Arya - Lokhindi)