India Inc had heavily invested in creating their ‘messiah’ during the general elections. It is now time for this messiah to ‘deliver’. There is lot of hue and cry in business community . Where as Economist and Intellectuals are busy advocating Subsidy cuts to Government . While in reality cutting subsidies only means that there is going to be a severe squeeze on the quantum of purchasing power that is available in the hands of the vast majority of our people. Now, no corporate would invest more when the people simply do not have the money to buy the products produced by such investment. This will neither generate profits nor lead to higher growth or employment. Thus, making available a larger quantum of resources at cheaper costs to the corporates can only mean making resources available for speculation and not production. This is what explains the current stock market boom when the economy is stagnating and manufacturing output declining. Labor Reforms, Hire & Fire, need to be implemented asap. Initiating Labor reforms is more important than cutting drastically on subsidies now.
Posted on: Tue, 01 Jul 2014 06:42:02 +0000
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