Modi on one side and 1.3 Billion people on other side, because dark cloud and Tsunami of unemployment and defaults coming…
Dear Friends/Members,
I am putting here small part from my todays India letter:
On Tuesday the Indian market lost value, which was a bit surprising for us because I was expecting the market to trade positive from Monday to Thursday. On Tuesday banking stocks created negative sentiment. Investors and those who are key back-bones of the Indian economy are waiting for a financial package for the economy, market and new money in the financial system but so far nothing has come.
The Modi government is taking everything for granted because there is no real solid trusted voice amidst the opposition leaders. With a population of 1.3 Billion, it is not a small country, it is the fifth largest economy of world, but the FM, RBI, and Government are seemingly just sitting idle and this could bring in disaster for the Indian economy. Why are they not proactive in bringing investments into the country, as this is a great time to create a manufacturing hub here in India as many countries are looking for other options. Vietnam, Thailand, Indonesia and other countries will take advantage as the Indian think tank is sleeping. US, China and several European countries have announced massive relief packages for businesses and people. These packages shield them from worst effects of corona on their business, jobs and careers.
India has not announced anything yet any impacting economy measures. Rather India has increased taxes on fuel and alcohol. With this, the Indian assets and businesses will lose strategic advantage over their global competitors (China and other Asian nations) and shall soon lose market share and business. If factories and manufacturing close in India due to this pandemic and the lack of financial support from government then China and other nations will take advantage by supplying the same material to India or create manufacturing units in their country. I am scared for the Indian manufacturing industry and job losses. In simple word “what the hell is the government doing”!
Also in a weak economy no jobs are created. This results in people trying to look for job outside the country resulting in brain drain and most will land up working for MNCs. Rather than creating businessmen and entrepreneurs, India might create cheap labour (slaves) for the global businesses.
If they fail to do anything for the investors and the economy then it is clear that Modi’s team just wants to secure votes and they will just keep throwing bones to keep the larger population of poor people on their side which could be disastrous.
It is high time that the government take serious steps otherwise they will be responsible for the economic disaster for India. I hope I am wrong but at this stage it seems that Prime Minister Modi is walking on the same path of late Mugabe of Zimbabwe. The people loved him, and the opposition vanished during his era. He kept throwing bones to the poor people and didn’t watch the economy at all because he believed that he needed the poor on his side because they would keep him in power. People kept supporting him, and he kept winning without opposition, and Zimbabwe fell from every angle completely. Most of us are witness to that. I witnessed all of this from 1996 to 2018. I went to Zimbabwe many times during that era and I saw the economy collapsing. I tried my best to guide, but who wants to listen as they think that power is the most important thing and one doesn’t want to leave that political position, they just remember voters and power.
Modi shouldn’t be thinking that he is the only messiah for India, he should remember that he is on the job and the people of India chose him to do a great job for the country because they trusted him and voted for him with love and enthusiasm. If he doesn’t understand the economy then he should put the right person in the Finance Ministry and RBI, and let these people make the right decisions for 1.3 billion people otherwise I see a tsunami of unemployment and defaulters coming.
Globally oil prices are lower while in India people are paying all time higher prices to fill their tank, and this is the biggest joke. I know the energy ministry likes to earn some extra money for the government with spread and taxes but this not the way to earn some extra revenue.
At this stage everything happening is wrong, I had great hopes when five years back I loudly talked about Modi in USA. We all trusted Modi and his team but so far it has been very disappointing, and a failure with no directions for the younger generation who are now graduating and looking for great job opportunity, entrepreneurs those who want to build a new India, and businesses and manufacturers who want to build a proud product with the label "made in India".
Final note with great humble request for Modi and his team – time to wake up otherwise it will be too late. This is a Pandemic time like never happened in history before, it is not a normal time so the think tank of India must get together with a proactive attitude, and must try to understand and analyze the coming time and make the right decisions actively from here onwards to take India ahead on the progress path rather than into darkness.
Thanks & God Bless
Mahendra Sharma
California, PST time 8.11 PM