Will India be a developed nation by 2020?
As India is fast developing and all Indians dream of becoming a developed nation by 2020, its high time for we Indians to think whether we can achieve this target with in a short span of about eight years. We all Indians started dreaming about this prestigious target a couple of years ago and it was fueled by the words of our former president Mr.APJ Abdul Kalam. But the present day happenings in our country and the world as a whole forces the Indians to rethink and analyse on our present economic conditions and our journey towards the status of a developed nation.
The major hindrance for the economic growth and development of India is the growing levels of inflation and rising price indices. Though our RBI is trying to control the inflation levels ,but its not finding results as other factors which affects inflation still remains untamed. RBI is reviewing all the transaction rates in each quarter and its increasing the basic points like repo and reverse repo rates to control inflation. But the facts like decreased industrial outputs,increasing interest rates, rising fuel prices etc makes all the efforts of RBI into vein.
Though the decreasing industrial output and increasing interest rates are a direct effect of RBIs action, the increasing fuel price is the direct result of government policies. The Indian government has given the right to fix the price of the fuel to oil companies and these companies decides the price of fuel depending on various elements like the price of crude oil in international market, the exchange price of Indian rupee compared to dollar etc. The govt. still have the control on the price of diesel, kerosene and LPG as these are considered as fuels used by common man. But the price of petrol is rising up and it almost touched 71 rs per litre and common man of India is struggling as they are the direct consumer of this non renewable source of energy.
As it has been already mentioned that the reduced industrial output and increasing interest rates are the direct effects of RBIs action to control inflation, but its the common man who suffers lot due to this. Actually its the comman man who pays the price for the inefficiency of govt. policy. It’s the duty of the govt of the country to make policies for both economic developments and to control inflation etc. But now in India, RBI is doing this by increasing repo and reverse repo rates.But while doing this, all the above mentioned impacts happens on the economy and people.
One of the major reason for increasing inflation rate is due to soaring fuel prices.Now in India oil companies increases the price of fuel stating various reasons like increase in crude oil price in international markets and in these days about the decreasing value of Indian rupee compared to dollar. Though India is not an oil producing nation,but these has been many potential locations in India from where we can produce these natural resources. Again the oil companies always talks about their losses while increasing prices. But the facts that these companies are spending lots of money for their advertisements. For products like that of petroleum, no advertisement is needed for its sale and its the consumer who pays the price for this. Also taxes paid for petrol and diesel by people in our country is much higher. All these factors which decides the fuel prices in India can be reviewed by the government and can be controlled.
Another major challenge before Indian economy is the recession which is spread all over Europe and America. Major Indian companies are doing business in these areas and an economic setback in these region seriously affects the income of our companies which is going to adversely affect its growth and that of the country. Though major economic stimulus packages has been announced for much adversely affected countries like that of Greece in Europe , the time which it takes for recovering can’t be predicted.
All these are seriously going effect the economic development of India. It’s the govt who should formulated the policies accordingly to take care of these challenging situation and leads the country towards our ultimate goal of a developed nation. And for this ,we need a good team work of both people and govt machineries and well defined targets and paths to reach these targets.
(The author is in Twitter as@johnsiypparayil )