Indian economy takes a leap backwards

The Indian economy today is in dire straits and facing an unprecedented crisis. The economy is shrinking, exports declining, unemployment rising, Rupee is weakening; fiscal deficit mounting and the stock markets are falling like nine pins. The latest Industrial production data of negative growth suggests that India has slipped well into a protracted recession.

When the BJP led NDA Government came to power in 1998 India's GDP growth rate was around 5 percent and when it demitted office in 2004 Indian economy was growing at the rate of 8 percent. During the five years of UPA rule instead of moving forward the economy has taken a great leap backwards to 1998 when the country was growing at a sluggish rate of 5 percent. The present recession is all encompassing and no sector of the economy is left unscathed. Be it the industry, services, business, export- import or the agriculture sector all of them are facing the brunt of recession.

The Government gives lame excuses that it is a global recession and it is bound to affect our economy. But the BJP believes that Indian economy could have performed better and also managed to dilute the recessionary impact had the UPA Government insulated and prepared the economy well in advance.

It was not a tough task as the present dispensation had three 'great economists' to take care of the Indian economy. The NDA regime had also faced the turbulent economic times during its tenure. The economic problems were compounded even further due to Kargil war and a severe famine in many parts of the country in 2002. But the under the astute leadership of Shri Atal Bihari Vajpayee the Indian economy sailed smoothly and safely in the turbulent and testing waters.

Although the Government has conceded that Indian economy is facing tough times but it is still painting a rosy picture of nearly 7 percent growth which is in stark contrast to the sub five percent growth projections given by reputed international firms like the CLSA.

Our stock markets have collapsed to new lows and retrenchment is the latest fear haunting everyone. According to a report by the Labour Ministry nearly 500000 people lost their jobs in the last three months of 2008. Certain organisations have come up with even more scary predictions. Indian Exporters organization has predicted that the number of people losing their jobs due to recession could even touch the figure of ten million by the end of March 2009.

It is not for the first time the Government is seen clueless and directionless during a crisis situation. When the country was facing a hyper inflationary environment last year the UPA Government did not react quickly and the aam aadmi was forced to pay a heavy price for its delayed and perplexed response.

By putting the blame on external factors the Government tried to divert people’s attention from its failures but did not find many takers. The inflationary pressure has now eased of not because of the UPA Government policies but due to another economic problem named recession. The recession could push the country towards an era of deflation which would be even more painful than the inflationary environment as it leads to more job cuts and increased level of unemployment.

The problem with the Congress led UPA lies in its constant denial of the existing problems, its failure to identify the root cause of the problem and its inability to respond quickly and decisively. On the contrary the BJP led NDA has the vision, will and the road map to pull the country out of this recession.

The BJP believes that India has tremendous potential and its demand driven domestic economy could even become the engine of global growth if it manages to strengthen its rural economy. The Indian economic model as propounded by Mahatma Gandhi and Pandit Deendayal Upadhyaya should be based on decentralization of industries and compatibility between capital and labour.

An economic model based on the philosophy of Pandit Deendayal Upadhyaya and Gandhian principles is not only a viable option before the nation but it has also become a necessity keeping in view the recent meltdown of free market capitalism and the failure of communism.

We had embarked on this path during the NDA regime by developing the rural infrastructure and after coming to power we will continue with our mission to bring prosperity to villages which will eventually bring prosperity to the cities. Increase in demand for products and services in rural areas will fuel the industries and services sector.

The BJP firmly believes that Indian economy needs prudent economic policies, increase in government spending, lower interest rates for production and agriculture. After coming to power the NDA Government under the leadership of Shri Advaniji will work vigorously on an integrated and rapid action plan which will spur demand and growth through out the country.

Anti-Investor face of UPA stands exposed

During the past five years the investors specially the retail investors have been dealt a body blow by the UPA Government. The policies of the UPA Government are such that the retail investors are always exposed to higher risk than the institutional investors.

An in-depth analysis of the recent crash in the Indian equity markets highlights the decimation of realty sector with many retail investors losing their shirts in this big fall.

The BJP had cautioned the Government on many occasions that in the absence of a separate regulatory authority for the real estate companies the retail investors were at a great risk of paying astronomical amount of money for overvalued assets.

The debacle of Satyam Computers has thrown up many questions which need to be promptly answered. The Satyam episode has not only highlighted the issue of corporate governance in India but also exposed the vulnerability of small retail investors in India.

The BJP demands a JPC probe into the Satyam scam to restore shaken confidence of the retail investors. The UPA Government has rejected this demand because a detailed JPC probe into this scam could expose a bigger fraud.

The anti- investor face of the UPA Government has been thoroughly exposed in the past five years. Now the retail investors have an opportunity at their hands as the Lok Sabha elections will be held within three months. By voting out the UPA Government the retail investors can bring the NDA in power which would ensure an investor friendly environment in the country.