FM's defence of growth must be based on solid ground

Union Finance Minister Pranab Mukherjee says that India’s fundamentals are strong and its growth

story is intact in his bid to allay the fears in Indian markets. He also says that Indian economy

is placed in a better position than other countries to meet the challenges that may arise

globally in the wake of downgrading of US credit rating from AAA+ to AA+ by S & P (Standard and

poor’s) Rating Agency.

But a few years back the US economy boasts of being the largest in the world that must not be

lost sight of in the context of its downgrading. If the US economy could fall headlong, why not

ours if its plinth is based on the same economic theory as of the US. So, though Finance Minister

is himself a prestigeous economist, it would be better if he had given us fullproof assurance the

influence of outside factors on our economy.

It is good thing that Mukherjee has asssured the country about Govt’s prepapredness to face the

challenges if ever the US downgrding had its impact on our economy. But almost all the economic

analysts and instituions don't altogether rule out no impact on Indian Market. It can also not

be rejected that our economic growth has slowed down in the last two years,though 8.2 growth is

respectable, while we require above 9 per cent in this competitive economy world.

Government has some political compulsions that hold it back from taking quick decision on the

issue of economic reforms. A lot of investment is needed in energy and infrastructure

development. Land Acquisition Act has to be put in place to expedite the economic reforms process

as now it is almost impossible to go back on them.

The hurdle in speedy reforms to be removed to achieve the desired energy production because it

has to satisfy first the people of the nation by solving environment problems. The environment

activists and the people oppose vehemently if attempts are made to increase coal productions and

installations of nuclear power projects on the plea that they destroy ecololical balance

resulting in pollution and hazardous activities. As we are a vibrant and largest democracy, the

government must take the people of the nation into confidence before embarking on any economic

policy and the benefit accruing from it must reach to the bottom in far-flung villages and urban

areas of our nation. Then only it would be called sustainable economic growth.