Indian Economy Bounced Back…

The Indian economy gave the best gift to its people of the Independence Day; a growth rate of 5.7%. What can be better than this to a growth starved country? It seems as if Acchhe Din Modi has started…

Indian economy had its days when it was growing at the rate of 8-9% in 2007, then as if it became a victim of black magic; its growth rate plunged to a low of 4.5%.

I remember the day when Indian rupee drowned to Rs 67/$, I was like 1991 has repeated and Indian economy will no longer be able to withstand it. But then came my SuperHero my ideal Raghuram Rajan. He was like a swimming instructor who came and saved the drowning rupee, and the country took sigh of relief.

Similarly When Modi came to power the Sensex jumped all time high, markets became over enthusiastic, people felt as if Modi will remove the policy paralysis and country will sprint and will catch up the world again. And actually it happened an economy from just 4.5% growth jumped to a growth track of 5.7%.

The data was not released and the politics began. Congress claimed that it was his policies that has resulted this growth, while BJP told that it was his policies that did the work. But according to me both are wrong. One point to be noted is that no policies show their results in such a small period and especially in a country like India where people take time to take into account the government policies due to lower literacy rates. Hence BJP can’t be rewarded for at least this quarter.

Well if it was not due to them then who the hell should be rewarded for this. The answer is BOTH… Yes both BJP and Congress. It was the congress policies that has resulted this growth. Then why it was not at their time. The answer is that congress has lost its credibility in the market, economy was at standstill, there was no confidence in the markets, investment climate was dull and many more things. But all these things drastically changed when the BJP government sworn in, I should rather say when Modi Sworn in.

Hence it was the attitude and credibility of BJP and policies of congress that has resulted in a sudden jump of economy. Whatever is the reason it is a joyful moment for all.

Akshay Ratnawat