Indian Economy: Old Wine in a New Bottle?

Topics: Government, Implementation, Economy Pages: 1 (279 words) Published: October 2, 2013
I beg to disagree with the tag that Indian economy is being given "Old Wine in a New Bottle". I agree with the fact that the economy is a new bottle having various new policies being implemented to account for the handling of multiple aspects of economy like Retail, Agriculture, Military, Power, Banking etc.

But the Indian economy is not an old wine. More number of young graduates and engineers are taking up interest in economic sector jobs from IITs, NITs to give wise inputs into the sector. Having said all that the GDP of India has lowered down from 9.3% to 4.7% in past three years starting from 2010. Precisely the Indian economy abolished the policy of License Raj, which involved the intervention of government towards decision making and were able to maximize the per-capita income substantially during 1991-96.

But the current situation is worse than that in terms of per-capita income and GDP. The reason is probably because of the fact that 51% FDI allowance in non-branded retail and 100% in branded retail has invoked a huge number of policies to be implemented. Numerous such policies have some inherent complications within them which are not flexibly interpreted by the authority of a particular section of economy. Hence seek the government intervention which bears a combination of capitalist and socialist policies. Such anomaly in interpretation creates confusion in the sectors for which the smooth implementation fails to occur. This is only the negative aspect.

So given the current resources I think that Indian economy is there to grow with increasing FDI if the policies are in sync with the concerned demands of the customer with as little intervention of the government as possible.
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