Election Rush has started. The 2014 General Elections has given rise to endless campaigning series by different parties. And as expected, opposing parties have increased the intensity of scolding Congress for the pity state of the economy.
Modi in particular, has given some aggravated comments on why Congress should not come back to power. He confidently states that if made the PM, he’ll fix the economic melodrama hovering over the country at present.
Well, I’d question at this point that Is Modi having a ‘Magic Wand’?
I mean personally I don’t feel that Congress is to be blamed wholly. Well, it is a universal fact that a government can’t be blamed nor it can be credited for any economic situation in the country, given the openness of the world economies.
India’s growth factor runs on the consumption factor and not on investment factor, like that of China.
Back in 2007-08, when USA was facing recession, it bent on quantitative easing, due to which, funds started flowing in the global market. Countries backed up with such high funds, started investing in India, due to its cost effective markets and attractive investment propositions. But these investments in India didn’t add to any infrastructural developments (Fortunately!). Because if these funds went on to infrastructural profiles, then the roads would’ve remained the same but not the bank accounts of the diplomats. So I’d say good job Mr. Subbarao. At least we are now in a capacity of repaying the money back.
So all in all, the sweet economic situation was only based on a decision taken by the US Federal Reserve, due to which our country was seen as the next ‘Super Power’, even when we were deprived of the basic facilities (a mere economic fooling trick played by US).
And now, when US Federal Reserve has hinted at cutting down the Quantitative easing, the sweetness has eroded. Investors are demanding back their money (because Rupee’s supply > Dollar’s demand). Hence the fall in Rupee value.
So I don’t see any point in blaming the Congress with a blindfold on our eyes because even if BJP had been ruling during this period, the same thing would have happened and then we would have been cursing Advani.
So Modi doesn’t actually have a ‘Magic Wand’. Modi is in fact, on account of uninformed youth, is running the race. The claims that Modi is making, are achievable but in another world.
And if Modi thinks that chasing away the FDIs in India would help save the rupee, then God Bless India!