It had become the habit of Indians to fear everything – We fear and look with suspicion almost everything around us. We are reluctant to accept reforms. This is the case with FDI, atomic deal, subsidy reduction and many others.
Fear – A look back at the history
Looking back at history, it can be seen that we feared Globalization in 1991. Opposition had raised many protests. But we can see that it was globalization which revolutionized India and made it an emerging economy. It was the case with the introduction of computers in India. Many parties in India had spread the view that introduction of computers would result in job loss. But the reality, as it is clear now is totally different – IT sector is one of the largest employers today.
Why we fear a change – Why are we so negative?
Media, opposition and coalition partners are giving wrong signals to public, and as public tend to believe the negative aspects first, and this can be attributed as a major reason. The next attribute is the inherent nature of many Indians to think only about the negatives and fear about a possible catastrophe.
Over dose of populist Measures – A path towards another Euro-zone crisis!
We over-stress on the need for more populist measures from the government side, which no rational economist can give beyond a limit without collapsing the economy. We cannot borrow to pay our borrowings. We cannot increase our financial deficit beyond a limit. If we do so – we will face the same crisis situation as the countries like PIIGS – Portugal, Ireland, Italy, Greece and Spain in Eurozone. We need money to fund our social sector reforms – and for that we need economic reforms first! We are a country with defict budget and not a surplus budget – people should educate themselves on the basics which a government run.
Coalition Government and Regional Politics
Its high-time, the congress government who had won more than 200 seats show guts and not let its policies be jeopardized by a party with just 19 seats. Whether the boat sink or not, people of India who know the importance of the policies taken, will stand behind the PM for the courage and right direction he shown.