With the pandemic spreading like fire and economic situation worsening it seems our government is returning to pre ’91 era.
Liberalistion of economy in 1991 by then Congress led govt at centre heralded a new era for the country. Control on industry was loosened and private sector was allowed to enter sectors it was hitherto prohibited to. Liberalisation allowed multinational companies to set up business in India. Govt companies were privatized or shut.
It led to creation of large jobs mainly in service sector like BPO and banking. Our own private sector blossomed and became huge. Then Vajpayee government further loosened the government control. He enhaced the FDI limits set up organization like Competition Commission.
All these reform led to India emerging as big economy. World rightly took a note of it. It was expected India will be next China and repeat the miracle of double digit growth. But crisis was brewing all along. Although economy was growing but jobs were not growing at same pace. Manufacturing was stagnating.
In backdrop of this Naredra Modi was elected Prime Minister on hope of creating job and rejuvenating economy. Younger generation had high hopes. Initially economy did well mainly ride the low crude prices. Modu came with varities of schemes for poor and marginalised. But failed to bring any structural reform that economy like India needed.
Over 90 percent of country’s workforce is employed in unorganised sector with little or no social protection. What country needed was a job creating economy rather than a economy which creates wealth for rich.
Modi paid more importance to start ups which create little job rather than job creating medium and small firms. His master stroke of demonetisation and GST killed the MSME. Whatever was left, pandemic completed that.
Condition as it stands today is such that banks are flush with cash but are reluctant to lend.
Government is run out of ideas and is trying deflect is public attention with sloganeering of ‘atmanirbhar’.
