1. The Indian media is fond of dramatizing the events specially those in any foreign country ,let it be even a small fry like Greece. It is also amusing to see Indians link themselves with stock markets of various countries whereas there is no such correlation evident.The index of Indian stock markets depends simply on how much money is flowing to Indian markets and performance of companies here. It has been seen that FIIs are no friends of India and they appear to be involved indirectly in manipulating markets.Today 1500 crores were withdrawn by FIIs, when there was no reason to do so and they should have supported Indian markets to regain early levels.They have no other place to take this money, be it China or USA.Hence India should reduce dependence on FIIs in next 2-3 years. Globalizing and WTO does not mean we throw open our country completely and carelessly to MNCs and FII attack. 2. The failure of Greece is a big lesson for spendthrift government of Man Mohan-Sonia combination. Since Manmohan singh has come in power several events are happening like in Greece or China: -VIth pay commission and spectacular salaries in private sector that are almost absurd and illogical. -Overheated property market like now China is facing and is on brink of bubble burst. -Very high inflation rate almost for 8 years now @ 25-30% pa across commodities and goods at consumer level that may prove disastrous for Indian economy soon.There is no indication of GOI acting on this or worried at all except for lip service -Reckless consumerism spending beyond our capacity and worth. -Huge government deficit,debt and wastage of money in unproductive schemes -Over spending in superficial infrastructure like malls and commercial property development having very poor returns. -Deteriorating basic social services 3. If we don't review our policies and tone down our euphoria and madness in trying to grow at breakneck speed and reduce over spending and huge corruption that has gripped the country time is not far off when civil war like situation will take grip of country and India may head towards similar crisis as in Greece,Portugal and so on. 4. It is time our politicians and policy maker stop aping American dreams,consumerism and lifestyle.It is time to clamp down on financial markets which are under huge abuse in India too. 5. Conversion of agricultural land to commercial and industrial use should be banned and huge reforms in agriculture are embarked for next green revolution.It is pity that while grains are lying useless waiting for buyers ,the price of food grains gave rise so much and 50% people are not having access to it.What kind of economics congress government is following? 6. Government spending and fiscal deficit should be reduced by at least 300 basis points. 7. Money circulation should be reduced by at least 15%. 8. Productivity of public servants and public services should be substantially improved.Since we cant reduce salaries now like in Greece. 9. Environment and sustainability are major issues for India 10 years from now.It is high time we reduce our GDP growth rate targets to around 6 % only and embark environment control measures and water conservation. If we look on above criteria, the performance of present government is far from even satisfactory
Picking lessons The Indian government should pick up from the mistakes done by other countries so that it does not have to face a similar fate. The way MNC are taking control of the Indian market allured by the cheap labor is something that India should think upon. It should not repeat what Greece has done. It should back away from the overheated property market.
The sudden hit of recession has surely given India a severe shock. Since India was entirely depending on outsourcing, there was a huge loss that India went under. It is imperative for India to have better economic models which can provide Indian economy a cushion at the time of setback. It is also important for India to explore out new opportunities of financial gain, which are not dependent on other nations. It should also promote Agriculture and small scale Industries for better economic conditions.
with the economic recession witnessed by the world, india should sit back and device plans and strategies to survive under such harsh conditions also and be prepared in future, unlike america which broke badly after recession. india on the other hand was not much affected by the recession, however it has got a good lesson to learn from.
one of the most important lesson what indian economy has to learn is, be prepared for the time of inflation and have the best possible strategies suitable for indian markets. this would ensure that atleast the domestic inflation is controlled. government must have sufficient liquidity to pour in at the time of inflation
india is a young nation and it does need lessons to learn from the already developed nations. the economists can study the economy of developed nations and can utilize their best suitable strategies in our countries to make our economy even better and robust.
India also suffered the brunt of recession sometime back and i think it should learn well from the past. There are many sectors which need the attention for development. If India takes up improvement of their conditions, i think India would have an edge over the economic constraints during the bad times.
