Look around you in India, do you see lush prosperity blooming all over with millions of fresh jobs, money rolling in, mega industrial growth?
During the 1960s, the Industrial Revolution in India created lakhs of factories and companies providing jobs to millions and the wealth grew, but most Indians took it all for granted. India was one of the top 10 economies in the world. The computer era bloomed in India making India a top tech nation and giving jobs to millions. Our tech giants rose out of this movement with sophisticated infrastructure to work in and outside the country. Thousands of schools and universities flourished and banks grew. Computers spread to rural India. During this time, great development mushroomed, and AIMS, IITS, IIMS, nuclear weapons, submarines, nuclear stations, ISRO, and Navarathna Public sector units were built.
Now, look at India in 2021; you will see Prime Minister Narendra Modi written all around the nation, ubiquitous in presence, face, and name stamped all over the nation. You see him everywhere, at the Olympic Games, athletes, cricket stadiums, petrol pumps, Army, schools, Bollywood, just name it, the PM is all over with Indian media incessantly praising him along with his fanfare crowd exalting him for the great happiness, prosperity and success in India.
Then just walk into hospitals, crematoriums, and graveyards, petrol pumps, farmers’ fields, go into IT companies, grocery shops, and markets, in the GST offices, in banks, just walk in and see the success written everywhere, yes, PM Modi is great, despite the new divisions and hate!
Now, when you see the financial fall in the nation some of you say it all happened because of COVID-19 but the truth is the economic crash devastated India in 2016 at the time of demonetization.
Today, walk into a mall or a stall or a company, industry, or hospital and ask yourself honestly what vibes do you feel? Answer to yourself truthfully in the sanctity of your soul where you don’t have to lie or pretend to anyone, what do you feel?
As you walk in, you will be greeted by empty industries, closed companies quiet and stilled, petrol pumps extracting our bank balances dry, cooking gas monstrously high making housewives cry, flooded crematoriums and graveyards, overcrowded hospitals, a vaccine dry nation, poverty reeking through rat-infested holes in houses, jobless millions sitting at home, depressed, suicidal, all alone and the truth may finally hit you.
Or perhaps you still choose to remain in a delusion that PM Modi’s India is hiking up the petrol and taxes and all other things to prosper our nation one day. That is an everlasting lie because not even one promise of prosperity came to pass, neither did he give the people 15 lakhs as promised, nor jobs; and pathetically, inflation shrieks from every corner in India. A favored few super-rich are rising richer while the rest of Indians are hit with tornadoes demolishing their little businesses in the ravages of ruins.
On a note of sarcasm, automobile prices have dropped so low that even the poor people can afford scooters! PM Modi is great and our futures can wait. No, you foolish blind people! You are swallowing up the lies of Godi Media and the BJP IT cell along with the fake stats created to catch Google SEOs so that the world will think India is prospering. Sorry friends, India is dying, gasping for air on a ventilator because we have hit the economic doldrums with the oxygen for wealth running out.
The Truth about PM Modi’s Disastrous Economic Policies:
Immediately after demonetization (November-December 2016), India was overshadowed with an economic slowdown. Business people who had tons of money lost everything overnight with no fresh money for investments, and buying and selling dropped. A lot of top business people left India, so no investment or flood of money was coming in.
The negative impact of demonetization was experienced across all segments of the economy, especially agriculture and industry. The IMF report quoted above also states that the disruption caused by cash shortages dampened consumer and business sentiments.
The Indian shares fell more than other Asian nations in the shares and stocks market.
There was absolutely no black money that came back from Swiss banks and in fact, there is more black money out of the country, and fewer people investing in India today.
Demonetization did not stop terrorism and militancy as the BJP claims and attacks are almost daily in some parts of India.
Polarized Nation Discouraging Investors:
Divisions are destabilizing India discouraging foreign investors because of riots, lynching, gang-rapes, caste rapes, rape-murders, shootouts, and a lot of other violent activity going on.
In the past, people from foreign nations used to visit India, fascinated with its culture and charm, but out of fear of harm, they are now visiting Europe, Hawaii, the Caribbean regions and other such nations and India is on their list of dangerous nations to visit, so we lost tourism and foreign money investments in the bargain.
Petrol Prices High Despite International Crude Rates Low:
The government has raised the fuel prices at skyrocketing soaring rates despite the lowest international crude oil rates in recent years.
India is in the Worst Debt Ever:
India got independence in 1947. Between 1947 till 2014, i.e., for 67 years, India’s total national debt was 50 lac crores INR. Now between 2014 till 2020 i.e, in 6 years, India’s additional national debt is 44 lac crore INR. (note the word additional, ie, 44 lac cr on top of 50 lac cr INR). This proves the terrible management of the money that has led India into debt.
Poor Implementation of GST:
There is crazy chaos across all sectors where the construction sector, GST was maximum 28% and minimum 5% based on products which resulted in huge variation, thus the turnover went downhill. After CREDAI appealed to the finance minister, the GST was revised to 18%,12%,8%, and 5%. During this transition period – the entire industry which contributed 11.5% of Indian GDP went into a loss, pushing 33 million people to joblessness, though the unofficial figure is considered to be higher.
Some people argue that GST collection is increasing year after year, which is true, but it is not benefitting Indian citizens and the economy in general. Also, GST is not applicable for fuel prices – petrol and diesel, thus the prices keep fluctuating. Since April 2021 – petrol and diesel price has increased 11 times.
When diesel price increases, proportionately MRP of products also increases since products are moved across the country through road transport.
The bottom-line is the increase in GST collection” is not a reason for celebration. It technically means that Indian citizens are paying roughly a maximum of 55% extra to purchase the same amount of products. An increase in MRP results in increased GST collection.
Indian Government General Debt Ratio Went Up:
It was 66% in 2010 even during the peak recession. However, it went up to 73.9% in 2019 when there was no recession or pandemic at all. After the pandemic, it raised up to 90.6% in financial year 21.
Before the pandemic, 22.9% of government revenue was paid towards interest for borrowings, after the pandemic, it rose up to 28.5%.
Government has No Money for Vaccinations:
In the speech for the budget, Feb 2021, the finance minister announced 35,000 crores to vaccinate 80 crore Indians, but soon the government realized it did not have the funds. So the government announced they will vaccinate only 45 to 60 age groups and that the state governments should vaccinate 18 to 45 age groups (which are basically 60% of the Indian population) with the state government revenue. India has not even started vaccinations below the 18 age group. So technically, the Government of India has the funds to vaccinate only 10–20 % of the Indian population.
All these reasons above are why the Indian economy isn’t booming despite the record GST collection.
What is Saving India from Going Bankrupt?
India’s Forex Reserve (Foreign-Exchange Reserves):
Its value has kept constantly increasing. By Sep 2020, it was $556 billion. By Jan 2021, it was $584 billion. By May 2021 – it’s $593 billion. This is not because Indian economy is performing better, but because the world economy is performing poorly.
In a nutshell:
The poor implementation of the GST, the bad decision of demonetization, terrible steps to hike up fuel rates, and burden the groaning public besides dozens of other catastrophic steps have proved that Prime Minister Narendra Modi desperately needs a financial advisor, but even if he gets one, will he listen? The sad truth is Prime Minister Narendra Modi never listens to anyone and thus the nation will go on with one blunder after another, but the fawning slavish, servile media and others are too afraid to show him the mirror.