Friday, June 22, 2012

Will history repeat?

What is the best case scenario for a person who takes up a challenge and fails in it? ‘Inventing ‘ a reason or an excuse which can be told to others and make others convince that problem happened only because of it, not because of person’s inability. 

India embraced Globalization in 1991, which seemed to be the best choice at that time. But now, 20 years down the line, we need to analyze the situation.  Five hundred years back, when a king used you rule the a province, destiny of entire region was decided by the King. If he was good, place got prospered and reached great heights and vice versa. We know some great kings who did well for their people and some devils who never cared their people. Later, in 1947 , we became a democratic country, which have 543 MPs. So, the situation was like , for the country to develop atleast 543 people needed to be good. And if they were bad, country would never develop. And now, look at the present scenario. 

Our country has Industries. We have employees. We have machines. But , are we getting any development? IIP data showed just 0.7 % growth, which had never happened even during the recession time of 2008. For this , finance ministry has a ‘very good’ excuse. Situation in Greece is getting worse. So , today, the situation is like , not only Indians need to be good, but entire world need to be good for our economy to develop. Two years back, Indian stock exchange was just depending on Shanghai market . If Shanghai perform well, NSE also perform well for the day. Today, we are looking to what is happening in Europe. If Greece worked well, India too would. Tomorrow, Greece may become fine, but then another country may be under recession. And that too will be going to affect India. Is this what globalization is all about? 

None of our government which came after 1991, took any measures for making ourselves prepare for the tough challenges of Globalization. Today ,we proudly say that we are going to be strong nation by 2020 or 2025. But how? Our’s is a country which has more than 5 percent fiscal deficit. Huge amount of money need to be given as subsidy. And still many farmers are committing suicide as they can’t find a market for their product.And government is saying that all these issues are because of Greece!!! How easy it is to put blame on other countries without monitoring our own finance policy well!!    If it is because of Greece, who is responsible our dependency to Greece? If Greece continue to remain like this for next 20 years,do we Indians also need to live like this for 20 years? 20 years down the line what we have presently is 5.5 percent GDP growth and almost a two digit inflation. But still we are boasting that we will be a big power by 2025.

Globalization, in   a perfect market where there is enough infrastructure and other facilities can bring huge development. But , for a financially immature country like India, it just created more dependency to west , than creating a self sufficiency. We accepted it, at a time when we had no potential to compete against other countries. And as a result, our country is just acting like a factory for other countries.

Today , how many of us have a TV which is made by an Indian company? But when we look at the manufacturing unit , most of them might be manufactured in India or China, which simply means we are just doing work for companies of other nations’ , without getting any technology. Most of Indian companies were thrown out in the competition and we just became a market for other countries(except in IT field, where there are a few good companies. ) . Ofcourse , we have some exceptions like Tata group, which started to acquire companies in other nations, but still if we take Indian market as a whole , it has just turned to be market for foreign countries. Automobile and electronics market are totally dominated by external companies and at the same time, Indian companies are really struggling to find market outside our country.  

This is the right time to analyze our nation’s financial policies. I really didn’t mean that we need to move to move back from current financial policies, but we need to analyze and reorganize our strategies and make sure that we will stand front in development, instead of depending on other nations for everything.Otherwise, we will just remain as a colony of other countries, just like pre Independent period. We will be independent by name, but will be dependent on others - infact a colony for other countries.