MBA Aspirants are expected to be concerned on political fallout on Indian Economy and watch the political scenario vis -a -vis Indian Economy.
Read: Economic reforms should prevail over general elections
Economic reforms are more important than elections; however, Indian politicians, for
decades, have given more importance to general elections than economic reforms.
Even today, it is said that the deepening political divide in India and the uncertainties over the result of the upcoming elections are weakening India’s economic outlook. Many polls predict that neither the ruling party – Congress – nor the opposition - Bharatiya Janata Party – will win a majority of the votes in the coming election.
In addition, the emergence of the Aam Aadmi Party is expected to deepen the political disarray in India. Political experts in India and beyond believe that if the Aam Aadmi Party wins as many as 20 seats in Delhi, Haryana, and Uttar Pradesh, it will reduce the possibility of a stable government in India and a stable government is necessary for economic growth in the country.
India has been suffering from low economic growth rate and high inflation rate and it is predicted that these economic woes will increase in the absence of a stable government.
In December 2013, inflation rate in India was recorded at 6.16%, the lowest in the last five months, as vegetable prices, especially the prices of onions, reduced due to a new harvest.
However, the inflation rate in India is still higher than the average inflation rate in Asia - according to several reports; India has the highest inflation rate in Asia and one of the highest inflation rates in the world.
This goes to show that a number of economic reforms need to be carried out in India to ensure that its economic growth rate is on par with the rest of the world.
More emphasis should be placed on the Food Security Act, increasing foreign direct investments (FDIs), and generating employment opportunities in the manufacturing sector.
Politicians should work closely in addressing the aforementioned issues instead of creating political differences and belittling other political parties. Politicians should be concerned about the welfare of the citizens of India and the economy and they should focus on improving the infrastructure in India, regardless of whether they are in power.
In India, politicians show utmost concern to the citizens just before elections and make speeches on how they plan to carry out economic reforms once they are elected. However, after the elections, they forget about the promises made to the public and focus on increasing their material gain.
This is the reason why there are so many political parties in India – if one political party was effective in carrying out its duties, the citizens of India would not be forming more parties.
For example, in Singapore, the People’s Action Party has been the political party in power since 1959. The people of Singapore are happy with what the People’s Action Party has been doing for them, which is why it continues to win elections till date.
This is what India should aim at – instead of forming new political parties, politicians should work together to rebuild the nation. Only when politicians look beyond the differences of political parties and work towards a common goal will there be economic progress in India.