Global Turmoil and the Challenges Ahead for Indian Economy (Resolution-2, NCM, Nagpur)
The whole World is passing through the severe pains of slower growth and high inflation due to geo-political tension arising out of Russia-Ukraine War and the disruption in the supply chains coupled with the immediately preceding Covid crisis. The prices of almost all food grains and other essential commodities including crude oils are skyrocketing as major part of wheat, metals and fuel were being supplied by Russia and Ukraine together. Economic sanctions have added fuel to the fire. Most of the Nations are facing the problem of high inflation which is about 8-9 percent including USA, Germany and Japan. The Central Banks are constrained to increase the interest rates which has a cascading effect on the financial flow and causing turmoils and volatility in the stock markets around the world.
Under these adverse circumstances the though recent NSSO data released by Government of India on 31st May 2022 reports slower GDP growth of the 4th quarter, but it is expected that due to timely intervention of RBI and imposition of ban on export of wheat and other agricultural commodities, with changes made in import duties and export duties, both the demand and supply will be managed to contain the inflation to less than 6 percent. The Government has been taking advantage of discounted crude oil imports from Russia. On the diplomatic front also the Government has been able to maintain a balance with QUAD group and the BRICS group and its Bharat centric policies are enabling us to keep our head high at global level. SJM appreciates the GOI policies in handling the Covid-hit economy and to maintain its inflation under check and thereby regaining its position of fastest growing nation in the World.
However SJM is concerned with increasing dominance of foreign capital and the declining domestic savings. The increasing trade deficit and declining value of Indian Rupee due to sudden increase in imports and pull out of funds by FIIs from the stock market is an area of serious concern. SJM is of the opinion that the taxation laws on capital gains needs revision for taxing the gains on stock market transactions and also to tax the capital gains on sale of capital assets located in India as has happened recently for sale of Holcim shares to Adani group through Mauritius route without paying any tax on sale proceeds of US$10.5 billion.
The unemployment problem is another area of concern and unless appropriate measures are undertaken both by the Central as well as by the State Government, the demographic dividend opportunity from our Youth may gradually fade away. SJM has therefore embarked upon the Swawlambi Bharat Abhiyan for change in mind set of the young people to be a job provider and come out from the shackle of being a job seeker. SJM looks for entrepreneurs Development programs in all the 739 districts of the country and to engage in continuous awakening for using Swadeshi and local products to make each village self-dependent.
SJM is of the opinion that the Financial Architecture which has been safeguarding the hegemony of USA with its unholy nexus with the OECD group of nations and thereby maintaining the Dollar Diplomacy needs a thorough change by dismantling the Breton Wood Institutions so that a fair, dynamic and equitable system emerge by giving an end to the economic colonialism in the name of economic globalism.