We have reached the point of slowest economic growth in a decade. The UPA Government in its two continuous terms enhanced the rates of essential commodities, taxations, and expanded the Service Tax net on almost all the things on the name of economic reforms and improving the economic health of the nation.
With such a disasterous results these measures cannot be termed as reform or improvement. Despite abolishing the ongoing subsidies since the beginning of Independence, disinvestments in public sector undertakings and general hikes all around nothing could be achieved. The economic growth now stands at 5 per cent. The Prime Minister Mr.Manmohan Singh and the Deputy Chairman of the Planning Commission Mr.Montek Singh Ahluwalia and economists by profession. Both have failed in their professional skill by placing the nation at the lowest ebb of economy.
Although Mr.Ahluwalia admitted that growth rate at 5 per cent was very low. But in the same breath he said that he was not certain whether the Central Statistics Office (CSO) have done it is a correct way. It is just a lame excuse to make it doubtful. The industrial growth is also at the lowest point of 4 per cent. Because of higher bank lending the Reserve Bank of India has starved the industry of capital. The manufacturing sector suffered the worst. For want of capital it had to reduce the production and curtail the jobs. At the same time the hike in petrol, diesel, truck and rail freight charges have forced extra burden on the industry. It has also increased the prices of general goods of day to day use in the households. Such measures have also very adversely affected the purchasing power of consumers. It has also crippled the industry. Under such a gloomy economic scenario the economic growth of the India is bound to come down Agriculture and Industry both are equally important and backbone of economy.
Despite repeated cautions and warning the Reserve Bank of India persistently decline to cut the bank lending rates on the plea of high inflation. The relief in CRR only provided some money to consumer class but for industry it was too costly to afford and keep the business rolling out finished goods. The economic policy of the Economist Prime Minister to enhance all rates and cut all subsidies to eliminate fiscal deficit and put blame on global conditions for economic stress and strains.
Founder : Late Shri Ramgopal Maheshwari