Nation on Reverse Gear

Dr Suresh Mathew Dr Suresh Mathew
26 Oct 2020

It sounds good to hear the rhetoric of making the economy worth $ 5 trillion. It gives a nice feeling to read about taking the country on the road to super power status. But such pomposity does not mean much on the ground. Well thought-out policies and programmes are needed to take the country on the road to economic development. The recently released International Monetary Fund’s prediction that in 2020 the growth of India’s Gross Domestic Product (GDP) will see a contraction of over 10 per cent shows the country the mirror. Rubbing salt to the wound comes the world body’s estimation that our ‘poor neighbour’ Bangladesh is set to overtake India in per capita GDP. The IMF’s report further states that India will be the third poorest country in South Asia, with even Bhutan and Sri Lanka having higher per capita GDP. This should send alarm bells ringing for the ‘ever optimistic’ mandarins in the government. 


The government cannot wriggle out of this dismal state of affairs putting the blame at the door of Covid virus. The pandemic and the subsequent lockdown might be the cause for the unprecedented contracting of the GDP in the first quarter of this fiscal year by a massive 23.9 percent, the first GDP contraction in more than 40 years. But India’s GDP had been on a free-fall continuously in the last eight quarters. Contrast this with the Bangladesh’s economy which over the last eight years expanded at the rate of 6 per cent and 7 per cent before hitting 8.2 per cent in 2019. Even this year which is undermined by pandemic, its export-oriented economy is predicted to expand 3.8 per cent. How will the Modi government answer the recurring decline in India’s GDP while the opposite is happening in the ‘poor’ neighbour. 
Adding insult to injury, the Global Hunger Index (GHI) 2020, released recently, has placed India in the 94th rank among 107 countries and it is in the ‘serious’ category. This report too has come as a big setback for India as it is placed behind Bangladesh, Myanmar and Pakistan though they too are in the ‘serious’ category. Nepal and Sri Lanka are in the ‘moderate’ hunger category, thus doing better than India.

 
The Modi Government would do well to gauge the depth of the crisis. A few announcements and coining new slogans won’t help it tide over the grave situation, partly created by its own wrong policies and lopsided priorities. Sound economic policies drawn up and monitored by experts will boost the economy. But we see many economic experts leaving their postings with the government disillusioned. The opinions of experts manning vital positions are often ignored. The corridors of power are seemingly occupied by those willing to sing paeans to the government rather than those who have expertise in the respective fields. 


It is worth remembering what David Lloyd George, the British Prime Minister during World War I, said: “You can’t cross a chasm in two small steps.” The country is faced with one of its gravest economic crises. Small steps won’t help it tide over the situation; bold steps and pro-people policies will bear fruit. Adding a few more to the billionaire-club is no solution. Putting more money into the hands of people and reviving the economy would be the key to the present-day predicament.
 

Recent Posts

Close at the heel of our other neighbours, Nepal's journey has swung between hope and betrayal. The monarchy fell, the republic faltered, and now its youth demand dignity, justice, and a future free f
apicture A. J. Philip
15 Sep 2025
The recent Vice-Presidential election has exposed deep cracks in India's democracy. Cross-voting, intimidation, abstentions, and invalid ballots have raised serious doubts. It ultimately begs the ques
apicture M L Satyan
15 Sep 2025
September 11 carries memories of violence and division, but also of Gandhi's Satyagraha and Vivekananda's call to end fanaticism. In a world scarred by war, injustice, and hate, 9/11 must challenge us
apicture Cedric Prakash
15 Sep 2025
India may soon become the world's third-largest economy, but its low per capita income, unmitigated inequality, weak healthcare, and fragile education system reveal a different truth. GDP milestones a
apicture Jacob Peenikaparambil
15 Sep 2025
Modi's long-delayed visit to Manipur are mere optics. After two years of silence amid ethnic cleansing, displacement, and inhumanity by the Meiteis, what peace, protection of minorities, and restorati
apicture Dr Manoj Kumar Mishra
15 Sep 2025
Umar Khalid, the Jawaharlal Nehru University scholar who has spent more than five years in jail, on Thursday, September 11, told a Delhi court that the larger Conspiracy case in connection with the 20
apicture Joseph Maliakan
15 Sep 2025
Looking back at the 100 years of Medical Mission Sisters, there was a pioneering spirit to begin health care facilities for the less privileged, openness to look at themselves critically to make their
apicture Sr. Mary Pullattu, MMS
15 Sep 2025
Though declared a secular republic in 2008, the nation's legal and cultural frameworks remain steeped in Hindu-majority sentiment. Nepal's National Penal Code of 2017 criminalises religious conversion
apicture CM Paul
15 Sep 2025
To be a "Carmelite on the street" is to unite deep prayer with public courage. We must build interior castles yet opening their gates, carrying contemplation into classrooms, farms, protests, and parl
apicture Gisel Erumachadathu, ASI
15 Sep 2025
In today's India, more than flyovers or metros, what we desperately need are bridges. Bridges between communities. Bridges between faiths. Bridges strong enough to carry us into the future without col
apicture Robert Clements
15 Sep 2025