Important media report stated that Prime Minister's Prime Minister's Economic Advisory Council chairman C Rangarajan called for faster implementation of large projects to spur investments, being concerned over declining growth rate.
He admitted , "Economic growth has in fact declined much more steeply than what is warranted by the decline in investment. This might be because projects have not been completed in time or complementary investments have not been forthcoming," .
He explained that in some cases this could also be due to non-availability of critical inputs such as coal and power.IH feels it ruine the vital steel and power industries of India .
He said actions such as the constitution of the Cabinet Committee on Investments should be able to usher in rapid growth in income even in the short run. While he made an unreasonable and ambiguous claim,when he said, "While even the existing level of investment rate should enable us to grow at 7.5 per cent in the short run, provided we take appropriate actions to speedily complete projects, a return to higher level of savings and investment can take us back to the very high levels of growth which we had seen earlier."
Being an economist he gave away some bare true facts on the Indian economy as follows :
1) On the global financial crisis, he said the Indian economy was able to protect itself reasonably well in the turbulent conditions and the recovery was swift and sharp.He accepted that even under the severe impact of the global crisis, the Indian economy had registered a growth rate of 6.2 per cent in 2008- 09 after growing at a rate exceeding 9 per cent for three consecutive years.
2) Rangarajan credited the structural changes that occurred in the Indian economy over the last two decades for imparting greater resilience to the system and making the economy more competitive.
In the last 2012-13 fiscal, however, it fell to 5 per cent. In October, the Reserve Bank lowered the economic growth forecast for the current financial year to 5 per cent from 5.7 per cent projected earlier.The economy expanded 4.8 per cent in the second quarter of 2013-14, pulling up GDP growth in the first half to 4.6 per cent.
INDIA HONEST have here few pointers worth noting, first as Rangarajan accepted that it was the efforts of last two decades till 2009-10 , which resulted in higher growth rate, even going closer to double digit, as similar to other Bricks nation, it even had the strength to sustain the global financial and Euro crisis, but what happened after that is no more history.
"It was massive corruption scam one after another in the Congress regime, which forced Indian economy to collapse ".
IH categorically accepts, when Rangarajan credited the structural changes, but laughs at the direction it has gone subsequently, all because of the moral breakdown of Manmohan government on the scams related (2G, Coalgate, CWG and many more) blow, when the entire investor group national and foreign deserted India.
INDIA HONEST feels pity that even Prime Minister's key economic adviser C Rangarajan has to lie, while praising the efforts of the government, even hiding the basic policy paralysis as seen in the following instance of NHAI, which ironically he himself handled as reported below :
"Upset over delay in decision making, the National Highways Authority of India (NHAI) has asked the government to scrap contracts for about two dozen of road projects, involving investment over Rs 40,000 crore, putting investments by infrastructure firms such as GMR and GVK under lens. While NHAI and the highway ministry had agreed to the proposal, the cabinet had tasked a committee headed by C Rangarajan, chairman of the economic advisory council to the Prime Minister (PMEAC), to work out the modalities".
But Rangarajan has so far failed to deliver, prompting a peeved NHAI to dash off a letter to the highway ministry suggesting that the contracts should be terminated “amicably”, and rebidding should be initiated as there was already a delay of over "two years".
IH accepts, that in addition to the people in general, the entire business and industry community, eagerly awaiting a change of guard for better future of India, as for the time being nothing is working in favour of India, even the Indo-American relations .