PM confident India can sustain 8-9 per cent growth

"Chingaaree koee bhadake, to saawan use buzaaye

saawan jo agan lagaaye, use kaun buzaaye?

Patazad jo baag ujaade, wo baag bahaar khilaaye

jo baag bahaar mein ujade, use kaun khilaaye?

Hum se mat poochho kaise, mandir tootaa sapanon kaa

logon kee baat naheen hai, ye kissaa hain apanon kaa

Koee dushman thhens lagaaye, to meet jiyaa bahalaaye

manameet jo ghaanw lagaaye, use kaun mitaye?"

[Update-II]

[With such a devastating budget, I do not know whether our bureaucrat PM is in Utopia or is thinking of visiting Utopia in the near future.......The lacklustre "election budget" presented by our FM, is already leading an exodus of FIIs. With such High fiscal deficit and no budget loolly-pops like disinvestment and probable rise in interest rate, I am fearing the worst--the dreaded word, "Deflation" (It is a negative inflation rate. Deflation means the value of money will increase. Deflation is often associated with periods of negative or stagnant economic growth, eg. Great Depression, Japanese economy in 1990s, early 2000s. In fact deflation is often used to express a declining economy. This may seem like a great thing to consumers, except that the cause for deflation is a long-term drop in demand. Unfortunately, a drop in demand means that a recession is already underway, with job losses, declining wages, and an ongoing decline in the value of your home and your Stock Portfolio. This declining prices, if they persist, generally create a vicious spiral of negatives as mentioned earlier, such as falling profits, closing factories, shrinking employment and incomes, and increasing defaults on loans by companies and individuals).

Though to counter deflation, the UPA has taken some expansionary monetary/fiscal policies (reducing interest rates, put more money into circulation by lowering taxes, increasing government spending, and incurring a temporary deficit, in an attempt to jump-start economic growth) but this deliberate attempt to effect a price rise, could cause "Hyper-inflation" or may be worst "Stagflation". Also, like inflation, deflation is very difficult to combat once it is entrenched. As businesses and people feel less wealthy, they spend less, reducing demand further. Prices drop in response, giving businesses less profit..

Rising prices provide an essential lubricant for any sustained recovery because businesses increase profits and take some of the depressive pressures off wages and debtors of every kind..

Moreover, the RIL-RPL tussle could become a fly in the ointment. Hence, it is all probability, the markets could move towards the southern Hell Gate.

When these kinds of "Political Budgets" are made to win elections rather than helping people, Nifty Supports and all those Chartical Parameters become redundant....When FM has made up his mind to show the "Exit Route" to FIIs what can the domestic investors do except to get hard kicks on their bottoms. If UPA does not have anyone to become a reform oriented FM, they should ask the NDA to provide one.....

However, there is single letter word which could help us, "Hope"......Otherwise, it is now almost certain that the "UPA-Octopus" will kill the Indian Capital Markets in the near future......but some people will never learn lessons. Yes these fellows will vote the same formation in the next assembly elections by flogging the emotive issues like, Gujarat Riots or Varun Gandhi (without thinking even for a minute what former Congress minister Kagodu Thimmppa reportedly said at a public meeting in Shimoga district: "The hands of those who propagate Hindutva should be cut off") or Kandamal Riots (Overlooking the fact of illicit conversions of Hindus and killing of Swamiji)..................pata nahi kya kya.....topics.....comes next time........or stay at home during the voting day (the next assembly elections), enjoy the holiday, and get all of us screwed. However, you will find that most of the Television audiences are from Delhi and Bombay (where the voting percentage hardly crosses 55%) only, who give us pre-election lectures on Voting. These fellows who give us lectures from Television studios and do not vote, should be tied to lamp posts and whipped mercilessly.

It is lamenting how UPA got voted to power this time which was responsible for Mumbai carnage (nothing worthwhile has been done till date), a series of bomb blasts (nothing happened in case of Assam Blasts), high fiscal deficit, etc.

Today in a surprising move our personality-less Prime Minister, spoke in a rather apologetic tone (almost in a sobbing note as if this "Corrupt Fellow" whom many Pakistanis call "Goonda President", is Lord Rama; for reasons best known to all): "It was not my intention in any way to hurt Zardari Sahib's feelings,".....Sheeeeeeeeeee......we have this kind of coward Prime Minister .....

This UPA Government is already in dire straits, due to ills committed during its earlier stint----it thought it will never come back to power and hence did all those evils in the last 5 years...All those talks of reforms are now in a Waste Paper Basket, waiting to be unloaded inside the nearest insinuator. Woh!! This is our democracy for which we are so proud of......

Mr. Fakhri H. Sabuwala writes in a noted Bombay based Financial Weekly, in his column, "Kambakht" Budget: "What else should one call the ‘Big B’ when the market lost nearly 900 points on day 1 and another 800 points by the end of the week. The budget proves beyond doubt that the UPA in its new avatar, too, is suffering from the Left syndrome. They could hardly think any different from the Common Minimum Programme, which was an integral part of the old UPA regime. The finance minister (FM) and his team of bureaucrats failed to carry forward the hope & optimism generated by the poll results and the Economic Survey. Such inaction was probably due to political compulsions of pleasing the orthodox within the Congress party and the UPA allies who raised their eyebrows on the petrol price hike."]

New Delhi: Notwithstanding the uncertainty surrounding the global economic recovery, prime minister Manmohan Singh today said India should be able to sustain a growth rate of 8 to 9 per cent GDP growth.

He said he was confident that India would come out of this crisis stronger but the road ahead was also going to be difficult to traverse.

"It is not not going to be easy but I am convinced that India's savings rate, which is as high as 35 per cent with a normal capital output ratio of 4:1, we should be able to sustain, with a little bit effort, a growth rate of about 8 to 9 per cent notwithstanding the difficulties on the international front," Sing told reporters accompanying him on his way back home from a four-day visit to Italy.

Against the backdrop of the world attempting a recovery from the recession caused by the financial crisis in the heart of the developed world, he said he had discussions with the leaders of G-8 and G-5, Egypt and African countries.

"After our discussions, it is my sense that while there are some signs of recovery, the world economy is still a long way from recovering the earlier growth momentum and there must be questions whether that will soon be possible for the global economy," he said.

The prime minister said he was returning home convinced that India must continue to strengthen steps at home to regain the 8 to 10 per cent growth path.

The prime minister said international environment would not not be as supportive as before for some time to come. "I am, however, confident that our domestic economic strengths will enable us to return to our earlier path of rapid and inclusive growth."

He said in his statement in the G-8,G-5 summit he did mention that all available indicators for 2009 point to a deceleration in the US economy in the European Union economies and, therefore, one can say that the global environment for the development of the countries of the third world has undergone a sharp deterioration.

Singh noted that India's exports have suffered, capital flows from abroad have declined and international bank lending to the developing countries has declined.

"Therefore the challenge before us is to sustain and revive the growth momentum which we have built up in the last five years notwithstanding the deterioration in the international environment for development," he said.

Answering a question, Singh said he had always viewed his government's role was to get rid of chronic poverty, ignorance and disease which still afflicted millions and millions of people.

"We have made some important gains in the last five years.We managed to impart to our country a stronger growth momentum.We strengthened the forces which make for inclusive social and economic development," he said.

He mentioned that the government had put in place social safety nets which soften the harsh edges of extreme poverty substantially.

"But this is a long and arduous journey and our challenge is to take full advantage of the instrumentalities which are now now in place for inclusive growth to plug loopholes, to reduce leakages and to ensure that these instruments become more effective instruments of social and economic change, accelerated growth, more inclusive development and more emphasis on rural development and agriculture."

Singh said it was a continuation of the journey they undertook for five years with renewed commitment and determination even though it must be recognised that the international environment was not not as supportive as was imagined at one time. [From Internet]