India recently launched Food Security Bill to make sure every citizen of India must get the right for food at affordable price point. The way the bill was pushed through both the houses post few amendments reflects respectable Member of Parliament showed an urgency to help common people. It prompted simple query and that is “Isn’t it true that economic growth would also help common people a means to increase their life standard”. In the last one and half years, there are policy discussion and then discussion and subsequently going for reviews. It impacted sentiment of different section of Industry and at the same time turned bullish Industrialist into bearish Industrialist. The different Industry Forum on multiple occasions sent very clear message to law maker regarding depleting confidence of domestic and global investor on Indian economic growth and concern was one and only ONE and that is Policy implementation hurdle.
The continuous delay on multiple process level triggered self imposed recession mentality within Indian Industrialist which sent wrong signal to Global player. The non responsive attitude of law makers acted but acted when the sentiment got deep into the mindsets of common people.
The growing Current Account Deficit and fiscal deficit ballooned due to depreciating currency, increasing gold and oil imports contributed to Inflation, WPI, and CPI. The catch 69 situation of rule of land struggled to manage currency fall, import increase and lowering inflation landed Indians to feel the pain while managing their household’s expenses.
The slew of policy framework, CCI clearance on multiple project came as the breather but unfortunately would take minimum 9-12 months to start reflecting impact on weakening economy.
It is time of all to realize the gravity of situation and to act in sincere manner with a zeal to resolve all pending issues on any front to offer our goal to re-emerge from downward spiral.
When our government is so serious in offering equality, education, medical and food for all then why can’t our government initiate to create a bill which offers security for our domestic business. I do remember Financial Crisis of US in 2008 and was truly impressed with US government for their co-ordinated approach to even safeguard falling kings of Automobile, BDFI and other sector to make sure that impact on US citizen must be minimal. In a similar manner, Indian government can initiate full blown measure to remodel multiple sectors of Industry to pump in confidence. If we fail to do so then its not long that we would fall to $500 Bn from current $800 Bn in next 3 month post tapering of QE from US Fed. We must note that the current industrial downwards cliff may pose higher threat on mass unemployment and without any social security in place, many taxpayers would disappear from system.
In my point of view, government must bring in Economy Security Bill which must take current and potential concerns of economy and offer all assistance in order to kick start economy. The growing economy would bring employment and inturn many seekers under food Security Bill may come out of that net and subsequently reduce huge financial burden on government to fund the same
