Future of Indian Economy

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Lots of comments and suggestions are coming up about the future of Indian Economy in the post pandemic and Russia Ukraine war but in case of India we have a different scene to manage its own economy. The main part is how to manage the Inflation? 

It is clear from the history of economic restructuring of various Europe, USA ,Japan and Asian countries, their economy is based on how much strong is the currency of that country by itself. The strength of any currency depends upon  the country's debts, Export - Import trade, foreign exchange earning,, money flow within the country. Another way of looking into historical facts of Inflation is that items remain same but as we say it becomes costly. The background of it, we should understand, that it is the value of money, in real terms. which  has gone down.   

I had been to UK, Finland, Belgium,Germany not so long in the past. What I could see that their production processes, medical systems, business is going on well. On the other hand, we see neighboring countries, their economies are shattered, more unemployment, financial constraints and so on. More so, they are not in a position to pay interest forget about the loan repayments. Loans taken were diversifies to other unplanned activities which resulted into corruption and money is mismanaged. 

In India, good sum of  amount is spent for import of fuel derivatives and other imports. Besides, amount is spent on payment of loans/ interests  taken in the past from different foreign sources. In order to contain the imports we should focus on more production of items which can be substitutes imports. It should be produced at a larger extent so that it can increase our  exports. This will generate more jobs, more earnings of foreign exchange to make Indian rupee stronger currency. The increase in salaries and more earnings will insulate the effect of inflation automatically With the passage of time, the prices shall  be stabilized and goods at rather cheaper rates  will become available in markets Govt. should also adhere to exercising  milder taxation on essential items. 

Govt.should restrict from giving subsidies to especially private hospitals which are becoming den of corruption using money for business purposes with no care to the patients..They have the legal protection with a battery of lawyers to shield them which covers up their activities - doesn't matter whether the patent dies in ICUs. Proper policing be done of such hospitals as to how many patients are there in ICUs and for longer period to see whether they are kept there just for earning money or actually in need, Inquiries be done in case of patients die in ICUs after being kept thriit for more than 15 days. . .    

This requirement will become a basis for country like India having large population and Land base. Squeezing of money flows will not help in inflation control rather than focusing on more production, funds availability oeaper rates to industry and control in Govt expenditure. This will certainly effect service sector as well like transport, better connectivity withinh rural and urban India. 

To conclude, I must say that insteadof increasing direct taxes, fuels and its effects on other services, we nust focus on mor eproduction, increase exports ,giving jobs for more workforce for more production and the increased salaries and wages shall insulate the inflationary effects in the time to come. 

Reverse conditions in the economies of neighboring countries is a good lesson to understand the gravity of economy around. .


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