Since the demonetization announcement of PM Modi in 2016, we Indians are panicking whenever he comes on TV. Well, no offense but I’m way too terrified when he is on TV. On the contrary, his announcement on 12 May 2020 evening was pretty positive. He says, “Self Reliant India, Go Local Buy Local and several such phrases.” Also, he spoke about Lockdown 4.0 but much towards the end and kept it at state discretion.
On a positive highlight, he spoke on the 20 Lakh Crore Rupees package. Also, five pillars for India’s growth. I see this to be more of a revolution to lure manufacturing projects to India in the coming days. We all did read on manufacturing exodus in China, right? I was pondering on the five pillars and thought all this definitely leads to making India a manufacturing hub. Of the five pillars, I tend to talk more on 4 as economy is always greek and latin to me.
Loss of China is Gain of India. Well, if you all believe in this eve now, probably we never saw what happened in the past 2 decades. Loss of China has not been the Gain of India. If you ask why, the answer is- lack of infrastructure. Rather these manufacturers set sail to Vietnam, Malaysia and Indonesia. Even South American and Central American countries
With the 20 Lakh Crore Rupees stimulus package, the Indian government might attempt to lure global manufacturers to set shop in India. While manufacturers worry on the poor infrastructure in India to set shop, this could bring new hope to them.
System Driven by Technology
Bollywood movies best criticizes Indian Bureaucracy to a large extent. We all had one hero fighting the whole system and attempting to change it. Well, they are easy to target perhaps. Anyhow, coming to the point of PM Modi, this is probably a drive to digitize trade facilitation and clearance operations. Also, easing of tax systems are also in the cards. Again this is an effort to increase the agility of the government machinery to facilitate trade.
The population of 1.3 Billion is our country’s strength undoubtedly. In certain cases, turns out a weakness as well (in terms of consumption). In the coming days, we can see an inflow of skill development activities too on a large scale to prepare a large skilled workforce. This means even the daily wage workers getting regular jobs.
Due to demand slump, non-essential FMCG, automakers and several industries are facing revenue loss. The coming days are predicted to be more worse. Anyhow, a stimulus in terms of easing spending patterns might be in line to rejuvenate spending. When we all began to spend more, economic activity revives and we could avoid a recession scenario or even a low damage recession.
As said before, I don’t foresee any economical revival as I don’t understand economy much. Rather I believe these announcements and the stimulus of 20 Lakh Crore Rupees is for reviving the economy. Maybe, RBI can come with a new announcement of Repo Rate Cut. Well, I better don’t speak much on this.
I’m not an expert to talk about all these. Listening to PM Modi, I did believe some sort of positive bureaucratic actions are coming up. We hope the announcements are in the interest of developing the nation. Also, if the execution is inclined to the actual mission we can thwart a major recession or even make it a low damage recession. Before leaving guys, I did see some Indian Startups innovating and wrote on them. Do read it.