And for a Friday as the Indian Economic Forecast gets a Thumps Up from Global forums, a jolt from Karnataka, some thoughts, some musings.
India stands out as an oasis of growth and stability. In the current global chaos and the geopolitical tensions and the looming uncertainties of the certainty of Trump in US elections, its reassuring that IMF has upped its forecast for India from 6.8 to 7%, as also the ADB has retained its 7% growth forecast. Indian Govt Bonds inclusion in the J P Morgan Global bond index and Emerging Markets (GBI-EM), is one more push for the India story. In the first two weeks itself, more than a billion dollars have come into the country. With the monsoon now fairly well spread across the states, agriculture sowings are in full swing. Rural demand and consumption are already showing positive signs.
Employment and job creation can only happen when the economy does well and investments and growth takes place in all sectors of the economy. Short sighted policies to gain immediate political gains are hugely detrimental to the image and long term prospects in the country. Every state has to play its part. Maharashtra, Tamil Nadu, Karnataka, UP and Gujarat are prime movers. One negative trigger was the announcement by Karnataka Govt to reserve 50% in Managerial level jobs and 75% in non managerial, in all pvt sector entities for local Kannadigas. There was huge adverse reaction from all sections of the Industry in India and abroad. Even the legal validity of such a legislation is doubtful. The Haryana Govt had tried a similar legislation last year which was struck down by the High court. Thankfully the proposal has been temporarily shelved. Let’s hope better sense will prevail and no other state govt attempts such rash moves which damages the National image within and outside the country.
With the good monsoon and positive economic outlook, lets us all resolve to contribute to Nation building the apolitical way, the inclusive way, the SEEGOS way.