With the new elected NDA government focused over bringing
economic reforms, it looks as a new dawn for the Indian economy is on the
verge. The recent debates going on in the parliament regarding land acquisition
act, the points given by the FM in support of the amendments show clearly the
intentions of this new govt. to push the reforms. In the current scenario, the
Indian economy seems facing a halt due to many pending projects due to inefficient land
acquisition act. The recent example of it is the ongoing dispute be in the Korba
region where acquiring just 6 sq. km seems to be an arduous task for the
government. It is estimated that, with the much debated 6km land acquisition in
the Gevra mine, CIL can extract coal that can cater to the need of Indian
power demands for the next 10 years.
It will be interesting to see the developments in the NDA
strategy to bring a spur in the Economy in F16. With the current statistics of CPI
and WPI, though the reasons are the supply side fluctuations due to the fall in
crude oil prices, a willing support has been laid by the governor of RBI by
decreasing the rates. It is a very good opportunity for the government to cut
down its expenses and meet the targets of fiscal deficit for F16. Increasing
the earnings by disinvestment process and auctioning of coal mines and spectrum
will further support it. But this approach was good for the year that has just
gone by. For F16, eyes will be on the policies of the govt. which will decide whether F16 will see its
target of fiscal deficit meeting through disinvestments and auctioning or the
approach will be increasing the revenues by means of development of
infrastructure and policies in favor of the businesses. The response of the FIIs
and the entrepreneurs will decide whether
F16 will truly be an year of revolutionary GDP growth of over 8% as anticipated by many or will be a flop show again. Bringing foreign investments, promoting industrial
production are the aspired vision of the Indian government and only the time
will tell if F16 will see economic
growth of the nation.
Ashish
