We may often wonder as in what could be the real indicators of the growing and most progressive economies. Are there any good economics that come to play or do we strategize amazingly well to grow as an economy? These questions appear before any average Indian who follows news and starts getting familiarized with terms like GDP, fiscal deficit, credit deficit and corporate taxes, just to name a few examples. The truth is entirely simple besides the cliches that are expressively used by the so called economists and popular politicians.
Politics in India are directly related to lot many other parameters than the economic indicators. These economic indicators are truly influential in creating sustainability and such stability impacts common man through many aspects including the prices of common commodities and house hold stuff. The youth of today are expected to think and relate economics in the lines of major public impact rather than taking the traditional route to complain about the outcomes of bad economics. The economics of our country are also directly related to the political thinking and policy making.
Our policies are being segregated into two broad types given the political compulsions are taken into consideration. We talk about the populist policies and reformist policies. These two types represent two different mind sets and eventually two different generations that are older and younger. The older generation thinking and work around is more populist whereas the newer generation prefers the reformist measures. Both these policies have their advantages, but the populist measures are known to be politically convenient and dreadful for the growing economy. Political parties try to entice the voters by giving the freebees and subsidies from the public spent and make them vulnerable to continue to depend on the successive governments. The unfortunate situation is that the voters of India today comprise of people who sympathize with the populist measures or policies of any government. Their mind frame is tuned to accept anything that comes free from the government. They do not realize the impact of such policies or schemes on the economy and their own lives. The growing income tax slabs are a direct effect of these policies. What we are supposedly getting for free is charged through the taxes that are paid by us only. Contrary to the populist economy, the reformist economy talks about creating the value chain that creates wealth from many redundant sources. This model helps in inviting investments and be responsible for targeted growth which is essential for growing economies.
It is important to the younger generation to take note of these trends and respond in a way that governments are forced to adopt the good economics instead of creating a pseudo value system which doesn’t yield any cash flow rather depends back on the public through taxation measures. The youth of our generation should be given the opportunity to work around various financial models and leads this country in the path of development which is the only indicator of the prospective economies where India is already in the league.
