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Howdy India???: An attempt to explain the Indian Economy through the eyes of a common Indian and elaborated by the Nobel laureate economist Abhijit Banerjee...

Dr. Abhijit Banerjee
Image credit:News Bytes

We discussed in the last blog, about India born American economist, best known for his experimental approach towards removing global poverty, Dr. Abhijit Banerjee who has been recently included in every hot discussion on the newsroom couches on the topic of economics as the Nobel Foundation has announced him as the winner of 2019 Nobel Foundation Prize of Economic Sciences.

He is one of the economists and intellectuals who have raised their personal concerns in public media regarding the undeclared (although possible) economic slowdown going on in the world's largest market, India as well as the approach of the Government of India towards it.

Meanwhile taking an overlook, India at the time of its independence was a very wealthy economic nation, where the Indians were exploited for filling the treasures & reserves of the great British Empire.

But after the second world war, many colonized countries around the world were in the queue to be free and India was one of them. Although, in that time span, where international economics was in a transition from a thinner phase, India was not so affected and the GDP stood strong.

And then India got independence after a long struggle against the British. The partition took place simultaneously. Both of these events triggered the overall re-establishment of the economic structure of a young democratic country.

Since then India has grown at a rapid growth rate and has scored well always. And the performance becomes even more special as the final number has a contribution of people of the second-most populous country.

GDP history
Image credit: Wikipedia

India may be referred to as a third world country, but our miraculous improvisation in the economy, literacy rate, poverty rate, etc since independence speaks our success story.

Since independence, many cold wars, trade wars, conflicts, etc have taken place which in turn have also affected our economy in less our more magnitudes but every time New Delhi took the call and has performed efficiently to not let the train go off the track.

And in recent years the way of management of the Indian economy by the Government of India led by superstar international figure, Narendra Modi, is been questioned often many times by the so-called economists like Raghuram Rajan, Amartya Sen, etc. And one of them was himself the godfather of Indian economy, Dr. Manmohan Singh.

The allegations have gained momentum several times in Modi Government's previous tenure, like after the implementation of the Goods & Services Tax [GST] and the so-called demonetization.

GST and demonetization
Image credit: Bullmen realty

Meanwhile, any common Indian would not able to understand the complexities of macro-economics but it is for sure that the current picture is even more frightening than which is visible on the surface.

The GDP has been on a rampage of under-performance for the last few years and the underperformance has become more questionable after demonetization-GST factor showed its real sides.

The GDP (of past few yaers) may be comparatively higher than other countries like US, Japan, Germany, France, etc but India's own report card is not satisfactory and is continuously ringing a warning bell, and New Delhi has to take the call as done in past.

Abhijit Banerjee, the latest big name in the fray is one of all the criticizers and his recent achievement has brought him in the center of the ongoing debate.

PM Modi & Abhijit Banerjee
Image credit: Business Today

Meanwhile, after demonetization, he came up with opinion through an interview that he didn't understand the purpose of it.

"Indian economy is doing very badly", he has said this personally and on record recently. Even he has personally a question that which official data and figures should be trusted.

According to him several economical policies and schemes initiated from the Government of India are half baked and not deeply think off, they are even aimed to serve political purposes.

And he's the one who has proven his caliber, his opinions are to be respected and the government should take a reality check and personal introspection.

Meanwhile, the politicians have found politics in this topic to gain political mileage. The opposition is using Banerjee as a weapon to attack the ruling party while the ruling party is, in turn, targeting Banerjee and even several leaders are making serious allegations.

But wait, Dr. Abhijit Banerjee and of course, the godfather Dr. Singh has the solution, but it's only worth it when it's readily accepted by the center irrespective of their political backgrounds.

Manmohan Singh
Image credit: Business Today



NOTE: all the views are from a personal perspective and the opinions mentioned within the blog are made by respective people and are available on the web. So it should not at all be taken as a biased piece of text, it's the truth with proof.

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