Dear Prime Minister,
I have never
intended to write a letter to you. But the current uncertain economic scenario
has forced me to write a letter to you to get an expert view from you.
Today I have been reading many article on web, news
papers with the news stating that the India could be the first nation to have
investment rating to junk status among BRIC. There had been a lot of political
view/suggestion made for the betterment of the economic affairs
within and outside the country and avoid the further deterioration. This is the only alarm buss by this global
rating agency.
S and P were downgraded India’s outlook on
BBB- rating to ‘negative from positive’. This was the first instance to
wake and act for the reforms.
It was clear from the quotes of the some of your colleagues
in news which clearly shows governments denial mode. The report’s conclusion
has not been taken into right spirit. There were few example where countries
had adopted corrective measures opted for more economic development. The
global rating help to guide investors to park their money in form of FII
and FDI.
UPA I and UPA II agenda were Inclusive Growth of the nation.
On social front government has done lot of remarkable work. NREGA has played catalyst
role to ensure the employment of the rural citizen though world bank has
slapped the act for stopping the migration of people and real cause inflation.
Despite of this I support the scheme as it has created the sense of imp
among capitalist to ensure the minimum wages to the labour. Right to Food will
also prove the flagship program by UPA-II. Now World Banks data has also
proved that, poverty has also started eradicating from India. Governments efforts
on social front are likely to be appreciated.
There is lot need to be done for agriculture. Supply for
critical fertilizers is one highly important area where your team member
has to focus on as it is having direct correlation with budgeted subsidies. As
government has to balance the interest of farmers and fiscal budget. MSP for the farm
yield will have to be review after this monsoon to keep it aligned with market
standards. I differ your view stating that fundamentals of our economy
are strong because we are agriculture based economy but present scenario is
changed, now there are negligible efforts to raise the share of agriculture in
GDP( unlike govt. efforts on New Manufacturing Policy).
Especially when we talk abt
inflation the monitory policies were supportive in nature to tame the inflation
but the fiscal policies are not aligned with them. Still inflation is real
factor to worry and we are just scarifying our growth. And monitory function in
case of 2G case, CWG and coal auction has badly affected the government image. This year budget was really roll back event in
UPA tenure, we roll back GAAR, FDI in retail, ban on Export of Cotton,
train fare and others. I do understand running coalition govt is not the cake
walk. The people were saying the policy paralysis a lot. But I don’t think your government is observing the this symptoms. The real reason behind all the roll backs was that these were not studied well prior to presenting to both the houses.
Sir, you
were the force behind the economic reform of 1991. And have the economist as expertise. There are lot of bill pending in houses for clearance & which are very necessary for economic reforms and nation development. One of them is Micro Finance bill to regulate the sector. This sector had served the financially excluded segment of the society. If this bill will passed as soon as possible then MFI industry will collapse and this for sure, your special intervention is required on this. We all are seeking your views on the current economic betterment
by breaking the silence.
Regards.
Amol Nakve
