INDIAN DOOM:FOOD SECURITY BILL

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INDIAN DOOM:FOOD SECURITY BILL

It seems that the 'unprogressive' united progressive alliance aka UPA has finally managed to fulfill its primary goal it set out in 2004 after coming to power-making india a socialist economy,a consumption led economy rather than a manufacturing oriented economy and destroying completely the 'indian growth story' along with potential of millions of its young people.Recent reports indicate that rupee has crossed 64 against the dollar,sensex has tanked below 18000 and what does UPA care about?Food security bill of all the things!!As if NREGA was not enough UPA wants to completely shatter indian economy for years to come.People may say i am over-reacting but the effects of this bill will be felt for years to come and will push india years back.Now lets briefly discuss whats wrong

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1)When UPA came to power,india was growing at good rate,although not 8-9% but still the fundamentals of economy were good,moreover people hoped for better future.But in the last 10 years government has only been successful or has tried to pass only civil nuclear bill with the USA.It bothered with nothing else except maybe 2g scam,coal scam,commonwealth games scam and whatnot.Arguably,govt was too focussed on these scams to pass any meaningful bill.

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2)NREGA:Congress passed national rural employment gurantee act in its first 5 years of power with the sole aim of grabbing votes(congress wallahs will differ) and they did get votes and came back to power.Now this bill provides employment to a person for at least 100 days of a year and pays a bare minimum wage.Specifics are not a point,the thing is this scheme has been a massive failure on the ground(as if we hoped any better).Agricultural workers have started enrolling for nrega,pushing cost of farming fairly high,contractors are enrolling fictitious workers and pocketing the profits and the scheme is virtually unimplementable in maoist affected states.Due to all these reasons our subsidy bill has increased manyfold without any meaningful contribution to society.

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3)MANUFACTURING:It saddens me to say that according to stats indian manufacturing accounted for 24 % of the world in 1857,just about 100 years later it had fallen to 3 odd%.But the real shock is that even after 66 years since we virtually manufacture nothing meaningful.Mind you,there is ample difference between manufacturing and assembling as latter is a forte of indian economy,not the former.Forger about high end stuff,we can't even manufacture a 50 cc engine for sunny or luna.All the cars manufactured in india have foreign engine except maybe nano(if you wanna call a 625 odd cc 2 cylinder engine a true car engine).We can't make a single computer chip.Forget about the high end computer chips manufactured by intel and arm we can atleast try with smartphones?From the defence to auto to pharma sector we manufacture nothing worthwhile,heck india succeded in making war grade steel only in 2013,we were importing that from si
ngapore and russia before!!

4)FOOD SECURITY:As if already the condition wasn't bad enough we are gonna pass this act pretty soon and i see no one in the media seriously objecting to this useless crap law simply by the magnitude of its ambition.The bill hopes to provide 67% of the population(you heard right),ie roughly 80 crore people with highly subsidized foodgrains costing us atleast rs 1 lakh 20 thousand crore per year minimum although the actual cost will be at least double of that.I mean am i the only one shivering at the idea of this bill.

5)FUTURE:I don't wanna sound pessimistic but policies such as these are gonna paralyze the country totally,its only a matter of time before we feel the pinch.What about building more medical colleges,nore engineering colleges,building roads and power plants?What about spending money on r and d.We have to answer all thes questions before implementing laws like food security.

6)WHY STEPS TAKEN BY GOVERNMENT ARE WRONG:First of all i must clarify that i am no analyst or economist but i have shared my views with many people(bankers etc) and they seem to agree.The only reform(if we can call it that!) that this govt headed by a supposedely brilliant prime-minister and finance minister has done is increasing the interest rates to bring in the inflation.Now this has flopped,as we can all see from the soaring prices(remember onions).The reason for this failure is pretty simple-BLACK MONEY.Now because the majority of money in india is circulating currency and not the e-money(debit card,credit card or accounted money),,,the reforms at bank level like mentioned above has no effect as this unaccounted money was never part of the system in the first place!!.

7)WAY FORWARD:The only path is privatization of our inefficient and moribund public sector units so that we can end govt control over industry bringing down red tape and nepotism.This move will take power away from 'socialist' politicians to scuttle every progressive move and help save this nation.And last but not the least this UPA govt needs to go simply because it has put economy in dumps and is giving out doles like a foolish king.

By the way although we want UPA out in 2014 elections but our PM has different ideas.See for yourself