Sunday, December 15, 2013

INDIA LOOKING FOR A NEW DIRECTION

The recent announcements of election results are historic and has brought to light serious concerns of the nation, the economy, society and most importantly public at large about the current political as well as economic state of affairs. This is very clear from active involvement a record turnout of voters for the election. Almost uprooting of the ruling party in Delhi and Rajasthan is a very strong message to all political parties, bureaucrats, judiciary and specially to those who device policy and administer them that nation and Indian society cannot be taken for granted and the general public is
seriously concerned about price rise and inflation, corruption, lack of employment opportunities, complete dismantling of confidence of investors. The Indian economy is negatively impacted by too many procedures, hyper active tax legislations, prosecution of senior business leaders, severely impairing business sentiments and several such factors. The nation as a whole, have expressed that the decision makers and administrators need to act firmly, strongly and a decisive manner with a clear vision and direction. It is important to address all major and minor issues, troubling the public at large. The Company law is interfering in private sector in the name of corporate Governance, restrictions to even undertake financial transactions among group companies even by private limited companies. Severe penalties and prosecutions with imprisonment are prescribed even in those cases where no public interest is involved. SEBI has been given sweeping powers of raids, searches, asset attachment etc, without any checks and balances. The scenario on the front of foreign exchange as well as current account deficit is also a matter of concern. Reserve Bank of India has been able to arrest the free fall of rupee by some temporary effective but cosmetic measures including permission to Indian banks to borrow internationally and a special FCNRB Swap Scheme, wherein RBI has agreed to take the risk of exchange fluctuation indirectly. The real issue of balance of payment, current account deficit and pressure on Indian rupee exchange rate are critical issues not adequately addressed. The GDP and IIP low growth rates are matters of very serious concern.

It is very important for the government to learn the tough lesson immediately. The Government need to address all issues with compassion , positive attitude and concern for the common man and all the actions, policies and procedures need to be redesigned and implemented to bring a soft-touch to restore confidence in every echelon of the society.

0 comments:

Post a comment