Less than three months after trimming its India growth forecast, the International Monetary Fund (IMF) on 4th Oct'2016 raised it by a tad, citing the resilience of its economy and robust growth momentum.
The IMF now expects the economy, Asia’s third largest, to expand 7.6% in 2016-17, up from its earlier projection of 7.4%.
Although economic growth has been shifted from Western countries to Eastern countries long back,Indian growth has been sluggish for its own reasons despite studies suggested India's potential to grow. But all these years other countries have been allowed to grow at the cost of India. Thanks to superfluous, covetous and narcissistic political system of India.
Recent action of the government to scrap higher denominations by no means is superfluous. It cannot be incidental to collude with US Presidential election process too.
One thing for sure, Americans are fed up with global guardianship that has cost them dearly. American mandate, admittedly and evidently, proves national issue as the prime factor shedding of national and global politics. Donald Trump, a business person and economic student, will have to live up to the expectation to Americans. But every country has its economic limitation.Given the extent of economic damage already done, new President will be bound by his actions to ensure economic development which cannot be limited to USA alone. Lowering corporate tax, restricting HB1Visa and allied actions that isolates USA will certainly not improve economy.
Results of Indian election, Brexit and now USA clearly proves, globalization at the cost of national issues cannot be tolerated. Economy cannot be confined to certain pockets.
Narendra Modi government is smart enough to read between the lines to initiate drastic action that has long term effect , both economically and politically, although such a move was in the card as is apparent from his gradual move.
The degree of seriousness can be gauged from NaMo's action to lock its own cabinet ministers, with no mobile, after cabinet meeting till announcement was made except for few people in loop. Indian govt is going to keep a hawks eye on all cash deposits above ₹2.5 lakh. Penalty of 200% will be slapped if the amount is not reflected in annual returns.
All these days, people in power with knowledge of monetary operations have allowed fake currency in the system to the extent amount siphoned out of the system. Shortage of money has its impact over price, value and overall growth. Free ride has caused fake currencies to grow to the extent of 109% over Indian economy leading to route of collapse. Such a move gives a strong apprehension of not sparing such people with strong direct or indirect message to others.
The move was also essential to avoid neutralizing effect of GST implementation that will ensure industry and overall economy to grow.
Rupee appreciation through economic correction will ensure good return both to domestic and international market who have all along been skeptical. Balance of economy through economic collaboration and international participation is now expected that will allow citizens across nations and economy to grow.
