The Indian economy has posted, the second highest current GDP growth rate of 5.5% globally but is still being codemned by all concerned. The major Indian opposition parties are at daggers drawn aginst the economist led UPA government. But the foreign economy commentrators are also in the bandwagon that is berating India for this fall in its growth rate. It is true that the present growth rate compares unfavourably with the peak rate acheived in the recent past of around 8.5-9.0%.
However is the picture really so dim? After all in these days of globalisation, no country can claim to growin isolation and more so a country as large as India. The Indian economy by its very nature is relatively more dependent on the performance of some of the leading economies of the world, for ots own growth rate. These few but important economies not only impact the Indian economy but also the global economy as a whole.
It is worth noting that the latest GDP growth rates of some of the leading economies during 2012 are projected as follows :
USA 2.3% Italy -2.4% France 0.1%
Germany 1.2% UK -0.7% G7 countries 1.4%
Thus the Indian growth rate of 5.5% is far healthier than these countries and two of them are facing negative rate and one is practically not growing at all. The Indian exports have already started contracting as these and other European countries are not able tomaintain their previous levels of imports due to their distressed economies. It is reported that for the first time in nearly sixty years the international markets ,instead of expanding, have shrunk in size. It is bound to affect the Indian economy also adversely as is reflected in the current lower GDP growth rate of 5.5% .
It is not to say that Indian economy does not need to be handled better and with furthur economic reforms perhaps a higher growth rate can be acheived. For this it is necessary that all the political parties should ensure that important reform oriented legislations are passed in the Parliament. Already its one more session has been washed out due to the ego fight between the Congress and the BJP. It seems pursuit to power and clinging to power by any means and at any cost,i s far more important than taking necessary steps to boost Indian economy. After all whatever be the size of the Indian economy it has always fed the hungary politicians adequately. It is the non politicians who suffer.
So while the Indian growth rate looks far healthier than that of advanced countries, in our own country, no one seems to be happy with it. In fact after China our's is the second highest growth rate in large economies of the world. Such is the nature of our internal politics that instead of feeling happy, everyone including commentators of above extremely low growth rate countries are also emboldened to condemn the efforts of the hardworking common Indian. Will the political class rise beyond petty confrontalist politics?