Warning signals about India’s economy were there from long ago. But none felt the need to repair the ruptures from which Indian economy was bleeding. As a result, the country is now facing recession. The government is trying hard to deny this fact. But such facts can’t be kept under wraps forever as it affects the lives of common people. At present, the vast Indian market is devoid of any demand. This is why the industrial production has reached its lowest ebb. Unemployment rate today is the maximum it has been in the last 45 years. Non-performing assets (NPAs) in the banks have reached to alarming proportions. So there is a liquidity crisis. Foreign investors are withdrawing from the country. More worrying is the fact that even Indians are not interested in investing in the country any more. Government’s revenue collection has also been hit. GST collection has gone down. In all, the future of India’s economy looks real gloomy in the coming days. The third largest Asian economy may be in such a situation for a longer period which effectively means that development and relatively easier livelihood will remain a distant dream for the next couple of years.
There is no gainsaying that to get rid of such a situation, we have to find ways on war footing. But for some leaders at the centre all these talks are nothing but tactics demoralise Indians to hamper the country’s fantastic journey over the last few years. Everyone would feel happy if there was any substance in such claims. Rather, it proves clearly that the ideological guardians of the country are poor at economics. Data on unemployment, retrenchment in automobile sector, fall in revenue, everything have been admitted by various government agencies. These facts and figures are not imaginary. All these are real.
Why is the Indian market failing to enthuse demand? The answer is simple. At present, a sense of uncertainty is prevailing in the country. For example, no one knows what the fate of petrol and diesel cars will be in 2025. If government sticks to its plan to introduce electric vehicles, banning the present cars plying on the road by that time for the sake of clean environment, why should people purchase new cars now? Moreover, for a long time the farm sector has been suffering. Its contribution to GDP was going down. As a result, the vast Indian market has remained only on paper. In real terms, the lucrative Indian market has now been confined to a few big cities which consist merely 10 per cent of Indian population. The rest of Indian population has virtually no access to the market as it has no money. It’s a pity but the fact remains that despite having such fertile land, agriculture in India is no longer an attractive profession.
The present situation is a test to our resolve to make India economically strong. It is time now for us to realise that doles are actually injurious to the country’s economic health. India will have to concentrate more on wealth creation rather than be satisfied with the earnings from service sector. This is the time to take hard decisions. Any delays will harm the economy even more.