Is India's economy in a collapsing phase?
Since last year, life has taken an u-turn for lower and middle class Indian households. India's GDP from January to March 2011 was lowest in the last five quarters - the figure is 7.8 per cent against 10.5 per cent.
SINCE THE last year, life has taken u-turn for lower and middle class Indian households. India’s GDP from January to March 2011 was lowest in five quarters and figure is 7.8 per cent against 10.5 per cent. Inflation is the main factor of slowing economic reforms in developing country like India. By this millions of people are again being pushed back into poverty. If we see the data of 2010-2011 inflation rate is highest in the last 15 years - the highest being 9.6 per cent. 
"We have stopped going for eating and shopping at malls on weekends as everything is getting expensive," added other working woman. It is not only soaring food prices, slow manufacturing is also part of India’s collapsing economic story. Employment prospects are going down by 20 per cent. The statistics released by Asian Development Bank confirm that poor households in India spending up to seventh of their income on food, a 20 per cent increase in prices have sent almost 20 million Indians into poverty. In next year, if inflation rates remain same, there will be 46 million poor Indians. Government has been regularly increasing fuel prices without tax cuts, which only leave government poorer by so many crores. It means there is less money for poverty-social-welfare and infrastructure. "RBI increases EMI rates to recover economic debts, it only led to more burdens for people who have loan for next 20 years," said a public relation officer of private firm. "I am delaying my marriage as I have to pay EMI, and interest rates are going beyond my expenditure," added another executive. In my view, to some extent corruption, environmental, governance issues, etc., are good reasons behind slow economic reform. During parliament session our leaders mostly spend working days in fighting for own policies in vested interests and waste ex-chequer's hard earn money. It prevents those discussing main issues, development of the country and mostly they fail to pass important bills related to reforms in various sectors. It directly effects the common man's lives - who are forced to accept the impact of corruption, and the crumbling infrastructure. The need of the hour is reforms in agriculture, infrastructure, land, finance, and industrial taxation. It's not just reforms that will put back the economy on track; there is need of governance reform also. All these concerns should be looked into with top-level priority otherwise the slowdown will continue, and 'New India’ will revert to its old one, and stay as an undeveloped country.
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