A fish out of water would be more at ease than Nirmala Sitharaman in the Finance ministry of India. As she parrots the "fundamentals of Indian economy are strong" reassurance, there is a visible restlessness amongst economists and industrialists alike, in concurrence with the general citizenry of India When Manmohan Singh government used this line, it was first coming from an economist, who happened to be the Prime Minister of India.At that time, as world economies disintegrated, the strong fundamentals of Indian economy, kept India afloat.
When Manmohan Singh government used this line, it was first coming from an economist, who happened to be the Prime Minister of India.At that time, as world economies disintegrated, the strong fundamentals of Indian economy, kept India afloat.
Fundamentals Of Indian Economy - NO LONGER STRONG
Today, to say that Indian economy is chugging along on a safe and sound growth engine, is an utterly false and a criminally misleading statement to be made by none other than the Finance Minister of India.
The fundamentals would have been strong if the banks safeguarded the depositor's money and the depositors were confident. Fundamentals would have been considered strong when the major economic indicators were not tampered with, scrubbed and whitewashed by the current BJP government.
The open secret of Government of India manipulating the GDP figures to hide the truth from the world is now a sad joke. Globally, economists consider the trickle of economic data released or deluge of raw data withheld as a crude joke. Unfortunately, the macabre joke is on the people of India
Arm twisting the RBI
The fundamentals would have had a reliable base, if the Reserve Bank of India was not arm-twisted to part with the buffer that safeguards India from global economic shocks. The GST we are told has been a "master stroke" in overflowing the coffers of Indian government, yet, government is furiously looking for ways to raise money. This led to the acrimonious transfer of RBI's surplus to the government.
Apparently, the foundations of Indian economy are on shaky ground. Sources in the know indicate that in turn RBI has been looking for new ways to find money. It has now sold USD$ 1.15 billion dollars as per recommended by Bimal Jalan-led committee. On the other hand it has been investing in gold worth US$5.1 billion dollars since July.
Selling The profitable Nav-Ratanas-Read:A Fortune 500 Company
The strong fundamentals that Nirmala Sitharaman has been espousing are in fact so weak that government of India is now in the process of selling profitable Bharat Petroleum Corporation Limited (BPCL).
BPCL is a Fortune 500 company, with USD $50 Billion in revenues, $20 Billion in assets, and year over year it posted and impressive 16% profit growth for the quarter ended on 2019-March 31.
Modi government has for a while had its eyes on selling it off. It tried in 2003, but Prashant Bhushan got restraint order from Supreme Court Of India, arguing successfully that BPCL was nationalized in 1976 with parliamentary approval, and to privatize it back and for the Government to disinvestment its 54% stake, the same laws that nationalized it has to be used.
Basically, the spanner of Parliamentary approval was thrown in.
This meant, too much bad publicity for BJP and PM Modi, since there would have been open discussion in parliament.
In 2016, Modi government, slyly hid this law amongst 187 "obsolete and redundant laws" and annulled this roadblock of a law. Thus, doing away the Parliamentary approval, discussion on the floor of the house and unwarranted publicity.
“BPCL is a Fortune 500 company, with USD $50 Billion in revenues, $20 Billion in assets”
Murmerings Within, Clamour Without, Chaos All Around
The Indian currency is the worst performer in emerging Asia during this quarter, as RBI urgently steps in to jump-start a spluttering Indian economy. Meanwhile, Subramanyam Swami, the most experienced of finance professional in the entire country, let alone BJP, and sidelined and avoided by BJP leadership, who are unwilling to hear the truth, contends that the grown is 1.5%.
Industrialist Rahul Bajaj, took a huge risk in stating the truth and exposing himself to potential blowback from the various governmental agencies. He is being trolled mercilessly for speaking up.
On the ther hand, ironically, people have lost confidence in banks and on the governments ability to not stray from the truth
Amit Vats from New Delhi, Tariq Khan from Mumbai
write to the editor@vpatrika.com
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