Last year, the Supreme Court of India asked for the reasons about why the government allowed the ruin of food grains in governmental stock facilities and go-downs while many millions in India were suffering hunger and malnutrition. According to newspapers, a fifth of India’s population remains undernourished and some 3,000 children die each day from hunger-related causes while around 6 million tons of food grains were ruined in the year 20121 . Obviously, it was a clear indication that governmental intervention in the market causes extreme failures and loss. However, instead of learning this clear lesson from the situation, the government and the socialist bureaucrats of India suggested furthermore interventionist approach towards the issue and in 2013; the government announced their will to pass the Food Security Bill in the parliament. The food security bill suggests that every citizen has a right to get food (as a privilege of being a citizen of India) and the government has a duty to ensure that nobody is suffering lack of food or hunger. In other words, food security bill suggests that food is a human right. While this bill is still hanging in the parliament because of the uproar of opposition parties …Read the Rest
Tag: Economy of India
Mounting Fiscal Deficit Cliff of India
The biggest advantage of Indian government is that the Indian economy is still going through the process of disinvestment which means that the Indian government has a lot of assets in business and service sectors that can be disinvested to attain valuable monetary cash to do away with the yearly governmental expenditures and the national debt. The actual motive of economic reforms should be the process of limiting the government. The lesser the governmental control over economy will be, the better will be the situations for development, progress and prosperity of Indian individuals. However, there hardly are any hopes for reducing the interference of our government in our daily lives, nor are there any signs of any reduction of governmental interventions in the Indian economic sector. Rather, the Indian government that was wholly socialistic before 1991 is now gradually turning into a serpent of mixed economy that is holding a strong grip over all sectors of productions and service provisions through its fangs of corporatism. At one hand, they are disinvesting major production and service sectors in parts, allowing infusion of foreign currency in Indian markets, on the other hand, with king size government share in all these sectors and …Read the Rest
Sham of Economic Reforms
The whole political drama of opposition against Foreign Direct Investment ended today when the UPA government notified FDI in retails and mentioned that it is in majority. In my last post, I exposed the myth of economic reforms in form of FDI in retails. Here, I will try to explain more about what is wrong with this issue of FDI and how it is going to harm Indian economy in long run. I will also provide genuine ways for the actual economic reform that it could have been if our Prime Minister Manmohan Singh hadn’t acted so much intellectually dishonest. What has Wal-Mart Produced for the United States? The U.S. based Wal-Mart is world’s biggest retailer chain that is now ready to set its foothold in India. Most of the liberals and in fact, some of the libertarians are also appreciating this move and obviously, their idea is pretty simplistic, they believe some foreign direct investment is better than nothing. However, they fail to notice the effect of Wal-Mart on the US economy. When China entered the World Trade Organization, the U.S. government thought that it will be able to reduce the trade deficit with China. However, it all proved …Read the Rest
The Myth of Economic Reforms: FDI in Retail
Foreign Direct Investment in retail sector is becoming a huge issue that has caused a serious danger on the current UPA government under the leadership of Manmohan Singh, the Keynesian economist. The opposition parties has called on a nationwide strike on 20th of September and every common citizen is still wondering about what is this FDI in retails and how will it affect or benefit the common man. It should be noted that the regular slogan of current government and Congress Party is “Our Hand is with Common Man.” In my last post, I explained why FDI in aviation is actually a benefit for the big corporate in aviation sector of India and how it has nothing for the common man in general. I also explained that FDI in aviation will still prove to be beneficial because government may now feel no inclination towards providing huge bailouts and subsidies for big corporate of India. Yet, this is also true that unless the government completely disinvest its whole share in Indian Air India Ltd. and announces a general policy of not interfering with the aviation sector, it is just a fraudulent way to create another economic bubble which will burst within …Read the Rest
