THE RECENT GLOBAL MELTDOWN OF INDIAN ECONOMY
The year 2008, one of the worst years in the world’s economic history, experienced a major global meltdown. This global meltdown led to job lay-offs across the world. The global meltdown is not only affecting the services sector, even the industrial sector has been affected adversely. Major projects and expansion plans are being reviewed by the corporate sector and they have started focusing on reducing costs and borrowings.
The first half of the year 2009 is considered as the worst period. Despite all these problems, the biggest problem that still exists from the past is ‘Information asymmetry’. It would be fine if our Government or the members of the major corporate sector don’t know the problem or where to find the answer, but the truth is that they know both and are waiting for other countries to take steps.
The most important challenge faced by our Government during this time is to ensure a balance between inflation and growth. If our economy experiences high growth rates, it will lead to major exports from our nation which will affect our domestic market and if economy experiences a decline in the inflation rate, it will lead to major imports to our country which will affect the government budget. India, being a free market economy itself, isn’t insulated from this turmoil.
It is evident in the sharp depreciation of rupee against the dollar and the fall in BSE sensex. FIIs are pulling out their money in huge numbers. Despite all this, India has been able to avert a major disaster. And this is only because of those very regulations which we have been denouncing as being anti-liberal. Financial sector has been advocating reforms for a long time now which means easing up of these regulations and policies. However, this time, these very policies have helped in thwarting the crisis.
In this way India has recovered from the great meltdown. But Indian economy as a whole comprises of a biggest component which is POLITICS. Politics has both negative and positive impact on every economy. But what is politics all about?
POLITICS IN GENERAL
The term politics normally conjure up illustrations of the heads of government, legislators and the government currently, and even more general undertone is the thought of corruption and sleazy dealings. The thought of concept of politics originates from the Greek word ‘polis’ indicating both an element of government and similarly the state or community all in all.
Politics is indeed present when there is a collection of people that constitute a community. Politics is said to be a set of actions or occurrences that raises questions on the community or society as a whole. Politicians are one of the key actors in the practice of politics. They formulate bills, propose policies and advocate their views on how to enhance the performance of the country’s economy. They do not have the monopoly of employing politics as a means of carrying out things. The main moves and predominant actor in employment of politics is the people in general. The public is capable of making changes based on their perspectives on how things should be carried out.
Politics takes place in all types of communities and is at hand as an essential means to steer clear of conflict because of multiplicity of belief and opinion and therefore required to uphold as peaceful and subsistence as possible. Politics is itself a contradiction in terms of being at its extent, very complicated.
POLITICS IS A WAY OF GENERATING A MORE CONTROLLED SOCIETY.
POLITICS IN INDIA
POLITICS IN INDIA
India is one of the largest democratic countries in the world. India provides the biggest number of provisions to the people of this country. These provisions include franchise rights and the largest number of political parties. The percentage of the population that votes for the periodical elections was high previously but has depleted in recent times. Elections are held at different strata. The two important governments that are formed after the elections are the national level elections and the state level elections. The economy and politics of India have interested people all over the world.
Politics was feudal establishment in India before 70s. Congress was the superman in the system. Indian population was away from that untouchable system. After 70s, particularly late 70s, things changed. Congress party itself made some changes. But the autocratic mentality didn’t change much.