On Thursday, America's famed Motor City Detroit, filed for bankruptcy protection. A glance at how this famed city worsened would tell you the reason for the condition today.
The reason being "the city's undisciplined spending".
What if I told you the city's decision to enter bankruptcy proceedings is a sign of things to come for us?
Detroit witnessed blatant corruption in the past decade, coupled by a loss of 38 crore dollars in the yearly budget
With India's growth slowing down to 4.75%, Imports higher than Exports. , scams worth crores of rupees,Rupee depreciating. prices rising are we heeding towards a Detroit kind of disaster?
“No long term worries as it will be out once approvals for outside mining companies or retailing like walmarts are granted.” someone might have said an year back. An year later, with FDI limit increased in more than twelve sectors, the promise seems hollow.
16th July: Korean steel company Posco, cancelled an investment of 30 thousand crores in Karnataka.
17th July: With no progress in 3 years of the project's commencement, ArcelorMittal pulled its hands out of a 50 thousand crore investment in Orissa.
Investors seem unhappy with the environment in the country, then how exactly do we plan to attract FDI ? If we fail to utilize the investments, why would new investors keep their faith in us?
To top all this is undisciplined spending. Years back I asked dad why can’t the government print notes and give it to the poor. Dad told me doing that reduces the currency's value ,and the currency they give away becomes useless.
Our politicians perhaps fail to understand this simple logic, how else do you explain schemes such as distribution of free food to the poor in the name of welfare to attract votes? Continuing with schemewe will ruin our already fragile economy further if we do this.
Without a sustained reform process, which will take considerable time, India will not return to the days of fast growth. Government revenue and GDP will continue to disappoint, deficits will continue to be high, and consumers will continue to suffer. This is the path India remains on, and this path leads straight to the accidental one way of bankruptcy L