Quite natural for a new government in power to have a chalk-and -cheese approach in their program as compared to the previous government. But looking a bit deeper into the policies, its would be easy to undrape the policies of another capitalist government, that rode to power on fanaticism and incompetancy by the erstwhile government.
The first one in the list is commitment towards foreign direct investment and implementation of goods and services tax. Increasing service tax and excise duty on commodities would directly impinge on the cost of living of common people and only further strengthen the rich. The government needs to concentrate on varying the tax as per the type of commodity and the type of consumers.
The government terms the FDI as a potential revenue inducing monetary transformation. For eq: , the government says 100 % FDI to defense sector. What is the repurcussion? India remains the largest importer of weapons in the world. Opening this sector to Foreign investment, means a situation that could directly spin out of control with the huge amount that would be unleashed on in this sector. The defense research and dcevelopment would come to a standstill and the country would further see a decline in the Developmental production, which actually could generate jobs to millions. The Government should have restricted the FDI only for tecnhology transfer, which means potential to buy new technology from developed countries and further continue with the research in India.. However, there was a relief when it was announced to increase domestic industries..
Demand can only be stimulated through fiscal policy. Indian public is parking their hopes on gold rather than financial instruments , which is as a result of the traditional Indian thought and government irresponsibility in stimulating demand. The demand can be stimulated if the government takes corrective measures to keep the stock market under scanner , avoid spurious Market capitalization and issuing financial instruments with proper return on investment. The latter two could be entrusted by a proper Public private participation similar to the Kochi International Airport, a pattern implemented by then left government.
All in private hands will only spell doom to Indian economy and the BJP government will go down in history as another failure like the academic intelligentsia of the Congress..
The first one in the list is commitment towards foreign direct investment and implementation of goods and services tax. Increasing service tax and excise duty on commodities would directly impinge on the cost of living of common people and only further strengthen the rich. The government needs to concentrate on varying the tax as per the type of commodity and the type of consumers.
The government terms the FDI as a potential revenue inducing monetary transformation. For eq: , the government says 100 % FDI to defense sector. What is the repurcussion? India remains the largest importer of weapons in the world. Opening this sector to Foreign investment, means a situation that could directly spin out of control with the huge amount that would be unleashed on in this sector. The defense research and dcevelopment would come to a standstill and the country would further see a decline in the Developmental production, which actually could generate jobs to millions. The Government should have restricted the FDI only for tecnhology transfer, which means potential to buy new technology from developed countries and further continue with the research in India.. However, there was a relief when it was announced to increase domestic industries..
Demand can only be stimulated through fiscal policy. Indian public is parking their hopes on gold rather than financial instruments , which is as a result of the traditional Indian thought and government irresponsibility in stimulating demand. The demand can be stimulated if the government takes corrective measures to keep the stock market under scanner , avoid spurious Market capitalization and issuing financial instruments with proper return on investment. The latter two could be entrusted by a proper Public private participation similar to the Kochi International Airport, a pattern implemented by then left government.
All in private hands will only spell doom to Indian economy and the BJP government will go down in history as another failure like the academic intelligentsia of the Congress..
1 comment:
true very true I whole heartedly agree with this article
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