Saturday, 7 July 2012

Economic Reforms and initiatives announced by PM

The Government under the able guidance of Prime Minister Manmohan Singh is finally waking up to the 'course correction' badly needed to improve the image of the Congress Party. Repeated 'dents' by the Opposition especially BJP as well the continued propaganda by the Anna brigade has built up a very negative perception of the UPA.
Subramanium Swamy has also contributed to the misery of UPA in no uncertain terms. His constant litigation in the shape of the challenge he gave to the 2-G policies of the Telecom Ministry as well as the telecom licences granted by A. Raja was successfully challenged by him in the Apex Court, giving him some sort of 'demigod' status.
The falling rupee, the sagging economic growth, the retro tax debate all combined together, has contributed to a feeling of pessimism in the Country. However the stagnant economic growth, the failure of the Government to not live up to its promise of  implementing major economic decisions like Foreign Direct Investment in Retail, Foreign Direct Investment in Airlines as well the promised Reforms in the Insurance and Pension Sector were all contributory factors to the sagging image of the UPA.
Who was responsible for the Government not being able to go through with these decisions will always be a matter of great concern, rather than debate, but needless to say it sure created an aura of uncertainty in and around the Government. It needed course correction as fast as it had set in.
The UPA Core Group met again and again, in its efforts to diffuse this crisis and looming difficulty on the Nation's image as well as economy. Foreign sentiment was badly hurt because of the Government not being able to go through with economic decisions which had been thoroughly discussed in the various meetings and panels formed by the Government headed by eminent Parliamentarians, which included members of all Parties including Opposition parties. 

It is in this backdrop that two developments took place. The then Finance Minister Pranab Mukherjee who is an eminent personality no doubt, was selected as the official UPA candidate for the Presidential election. Secondly, the Prime Minister who was one of the architects of initial  economic reforms in India himself took charge of the Finance Ministry. 
Immediately on taking charge of the Finance Ministry, strict measures were taken to strengthen the rupee as against the dollar. The announcement was also made regarding the softening of the GAAR provisions which had been announced earlier. These as well as some other tax proposals had been opposed by the prospective foreign investors. Confidence of the investor was immediately restored, the rupee gained strength viz a viz the dollar and the stock markets closed higher.

The Prime Minister in his recent interview to Hindustan Times has given out the blueprint he intends to follow so far as the opening of the economy is concerned. He has promised to take the reform process forward, so as to reach the maximum number of people with the intended benefits of the economic process. He has also sought to allay the fears of a large number of people in regard to various issues like prevailing corruption in the Country, as well as the large number of unfinished economic agenda before the Government. He also sought to set at rest the uncertainty as regards the tax reforms introduced by the Government and promised to remove all doubts prevailing in the minds of foreign investors. 

Kudos to the Prime Minister for rising up to the occasion and planning the economic revival of the Country. What he needs is the unflinching support of all the political parties because economic decisions need implementation by all the States without any bias and unwarranted disputes.
Let the allies of UPA as well as the Opposition parties and the States under the Union carry out their mandatory duty towards protecting the interest of the Nation, which is supreme. 
Cheers to that.

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