If one has studied the production part of Managerial Economics correctly, he would have considered the Average Revenue Curve, the Average Fixed Curve, and the Average Marginal Curve. These three curves are famous especially from the political point of view as they signify the trend of the nation or the country in terms of the income that could be generated and the employment that could be possibly made.
Be it the banking system, be it the collection of the revenue by investment or be the the terms deposits schemes of the Government from about 1960 to this time is moving on a wrong scale and a wrong parameter This needs to be corrected and the Indian economy ought to be made to stand on its leg What ought to be done is the question Well I have made a study about the same and this is just a study that I submit which is measured by the Government, and some thoughts applied, and appropriate steps are taken to put the wheel of the economy in proper place to revolve and rotate the industrial scenario would look to be different and create jobs.
The Logic is simple- If your income level increases and goes up by one percent only then you can generate the employment up by one crore of human being employed The reflexive assumption and the correlation is ” if your Gross Domestic Product increases by 1 percent per annum- then your employment would rise by 1 crores of lives being employed ”
HOWL – AND – CRY
I see a” lot ” of howls and cry when it comes to a certain point that regards to the employment and it’s related to the income. One can visualize to say that the employment generation is crippled to its worst, and the pay also has plumed to a level which is very low. Case studies could explain the malady:-
Take for an example. When the UPA Government was there between the period of 2004 to 2014, there was no increase in the GDP. India’s GDP from 1984 to 2004 remained constant at an average of 5%. Every year the shortage of GDP was 3%. In a span of 30 years from 1984 to 2014 the deficit had been 3% x 30 = 90%. It could be gauged that the country fell back by 11 years as 8% has been the targeted GDP per year. Hence 90% shortage of the GDP roughly meant that the country had been back by 11 years.
In other words, it meant that for about 11 years, there wouldn’t have been any employment generation. If that was the case in all probability and practicalities, Where could the employment come from if there is NO enhancement of the GDP? An increase of the GDP by 1% over the fixed 8 % would mean that 1 crore of employment would be generated.
Now when the UPA Government took over their priorities every time was:-
- RAJIV GANDHI FREEBIES IN TERMS OF DISTRIBUTING THE CEREALS (MUFTH KA DAAL BATWAARA KA YOJANA)
- RAJIV GANDHI FREEBIES IN TERMS OF DISTRIBUTING THE RICE ( MUFTH KA CHAWAL BATWARA KA YOJANA)
- RAJIV GANDHI FREEBIES IN TERMS OF DISTRIBUTING THE KEROSENE OIL ( MUFTH KA KEROSENE BATWARA KA YOJANA)
- RAJIV GANDHI FREEBIES IN TERMS OF DISTRIBUTING THE COLOUR TV SETS (MUFTH KA COLOUR TV BATWARA KA YOJANA)
- RAJIV GANDHI FREEBIES IN TERMS OF DISTRIBUTING THE COOKED FOOD (MUFTH KA 1200 gms BHOJAN BATWARA KA YOJANA)
Since these are the various schemes that were done at the ground level by the Government then, I have to specifically highlight the name of the schemes I have written these in the capital/bold letters These were the national schemes then rolled out by the Government of India
When you make everything free- your own treasury goes for free to everybody. Their gamut was:-
MAKE IT FREE FOR EVERYBODY AND GARNER THE VOTES FROM EVERY SECTION OF THE SOCIETY
I’m very sure that these kinds of distribution which are meant to empty the coffer of the country is a free and a frivolous manner would have come from Salman Haider-Digvijay Singh-Mani Shankar Iyer. And the brethren’s falling and sailing in the same boat within the Congress They might never have even in their life touched even a page from the books of Economics and what they had studied was either law or history and yet something else than these To cite an example Mr. Digvijay Singh is a graduate of Engineering might have never also touched the page of Economics, here is a request for you Please do not paint the Indian Economics wrongly by using the wrong canvass and the hideous colors. Indian Economics is totally based on two facts:-
- BANK LENDINGS
The work expedition of the previous Government:-
The previous Government neither seriously think about any form of Econometrica or did it paid any interest to even one of the two essential elements of Indian economics that I have stated and mentioned above – leave apart anything else besides the two. In the name and the game of Agriculture, and farming they went on a spree to waive all the dues of the farmers which hit the banks like anything and in the name of Bank Lending they started curtailing the lending rates of the Banks, which told upon the cash-reserve ratio of the banks.
Then came Mr. Chidambaram. This man is perhaps the ” worst ” ever Finance Minister who held the portfolio of the finance ministry of the Government of India The rubbish studies of economics that he might have studied at Harvard University which is totally not fit to be deemed to provide in the scenario’s of the Indian economy and its structure which is totally against the funds of the Indian economics and its system, he kept on applying them to the scenarios and the actualities of the Indian economics and it’s system The result was that the Indian market which ought to be balanced by the reserves of the cash went Hayward. It was all the taxes under the principles of Reflexive Reforms of Taxes that was curbing the swelling of the total of the currencies in the banks and the counter of it by the bank to curtail it’s cash lending ratio did tell very quickly on the market The inflation was really unbearable for the consumers to survive in that kind of crushing tax reforms Mr. Chidambaram was and has been the WORST ever in terms of the Finance Minister that this country would ever see
LOWERING OF THE INTEREST RATES & IT’S CRUCIFIXION
The Bank interest rate was reduced, the investment interest rates were reduced, the extended terms interest rates and the face value of the investment was reduced by this illogical rules and the applications that were laid to the nation To add to the salt on the wound there was a world-class economist by the name of Mr Manmohan Singh and that really was a joke at that time to consider him to be the best of the economist that existed at the world then He was a MUTE spectator then and was doing nothing except swallowing the pills
The resultant was that the investors of every type lost their interest to invest for a long or a short term and the revenue collection saw a great fall. To make it up, he went on taxing and taxing and taxing and taxing the common man
Then came the most significant blow- The World Regression of the Economy The entire world was hit economically and one after one people all over the places were asked to leave their job. Within no second, the employees of the organization working for their bread and butter, the world over, was invited from their organization were asked to quit their job. This again brought about a fall in the collection of the taxes and revenue world over and India was no exception
IMPLICATION OF THE FALLS OF THE CURVES IN ECONOMICS
Naturally, when the Average Revenue ‘s falls- there is a low level of income and the revenue collection too takes a nosedive. When there is a shortage of revenue collection, how can there be any opening of any enterprise which would create any employment? Again when the Average Revenue curves fall, the Average Marginal Cost Curve to falls. When it lands, there is no chance of any new enterprise to betting set, no further avenues of any job, etc. to take place. How can you absorb new people when there is no revenue that is being created.
Since 2008 there had been at least two crisis, i.e., the Financial crisis that the world had seen. Many jobs were cut short, many organization worldwide were forced to be closed, many a bank went into a financial crunch or crisis, and the flow and the circulation of the money too suffered. Over it here in India, the UPA Government to win the national election went far ahead to announce specific schemes that were detrimental to the interest of the nation.
Facing a worldwide crisis of the finance where the Banking system all of a sudden collapsed it went far ahead to announce all the waiver schemes for the farmers, for this and for that. All of a sudden when you waive the loans of the farmers which was into many a thousand of crores of rupees, and the electricity recovery which was also running into a thousand of crores of rupees, the Bank was in loss. The money had gone, and there was no chance of them to get the money back. The cash crunch forced the Banks to cut off their lending rates, and the CRR suffered like anything. There were wholesome inflation and people expecting Mr. Mannu Bahi Sahab to overcome it- gave him another chance
UPA- 2ND TERM: 2009 – 2014: A CRUEL JOKE
Another chance of the UPA was a joke — Instead of falling back to make the microscopic economy correct and bringing about reforms in the cash collection structure they went far ahead to restructure the macroeconomics which was not at all needed. The micro economy was the need of the hour, but what India received was the economy of revenue where one by one effort was made to collect the money in a substantial manner. It saw all the scams earthing and unearthing. The entire salary from the market was swirled and scooped. Now when your bank is in such a stage, what will the bankers and the finance do.
Now there are certain people who question the Modi Government for everything that was done as a wrong by the Government by the ones who ruled from the period of 2004 to 2014. When was India’s Export, Manufacturing, Capital, Forex, Banking, Investment, and Job Opportunities right and up to order? When was it? It is this which the Modi Government 2.0 and his Lieutenant’s Mr. Arun Jaitley and Mr. Piyush Goyal will have to think upon and do or redo The things has to fall back into the place and that too within a period of the six month
EVERYTHING OFF BALANCE since 1960, YET MODI GOVERNMENT 1.0 WAS TO BE BLAMED
If that was the case, and if the entire finance and the Banking systems were at place say by the start of 1960, by now, the reservation policy for the job would not have been the order of the day. When was India’s education sector was correct and all correct? When was the defense sector all correct? If it was then why is the Gun Carriage factory and the Ordinance factory went off the place and were manufacturing nothing. Which area of India was good even for a year, leave apart even for a year- even for a month.
When was the power sector doing good? If that is the case, then why is that in Bangalore we have power cut for every half an hour in each hour and that also for 12 to 14 times a day for every 24 hours. When was our transport sector right if that was why is that the Railways did not come up with the kind of the trains that we have in Kolkatta and Delhi- the tube rail or so on and so forth.
When were the roads and the pots right as service providers? When was India a good nation for all these economic factors- it never was. All of a sudden we see the people barking, clamping and tramping Mr. Modi for everything, his Govt for everything. Mr. Modi is in the chair for five years now What were the people doing in the last 67 years out of the possible 72 years of Indian Independence. It will take at least 11 years for Mr. Modi to cover up the nation first for the loss it suffered in the last 30 at least to say, and he has spent five years till now In the coming six years he has to set that correct and precise That is the order of the nation without wasting any years and then to start it from there with a no-profit-no-loss sheet for the last but not the least, the coming years. This nation is 72 years old after Independence, so one should calculate the amount of time that would be required to cover up the loss for the last 72 years.
Every sector will need at least 15 years of time to stand on its own leg, that is the condition of the nation. If you have not studied Economics- I cannot help. If you have not studied Export-Import Management, I cannot help. Study these subjects and assimilate it with Econometrics- you will come to know where India stands and who has been responsible for bringing India into these kinds of butchery mess
Simply following some poster, or simply saying that I’m the sufferer, I’m the sufferer does not help. Dimply harping and barking- look at me, look at my dress, look at my health.. et al.. will not take away or wash away the sin which every Indian has suffered. Yes, the duties of the MLA, MP, and the host of other people ought to be also measured, and the facilities offered to them also need accounts in terms of its balance and the check. Accountability is the need of the minutes and seconds and not only of the hours.
Leave these the likes of Digvijay Singh Digvijay Singh, leave these the likes of Mr. Chidambaram, and leave this nonsense like Mani Shankar Iyer, leave the useless ones like the Sitaram Yetchuri and for heaven sake leave the Congress it’s. They were good for nothing they are suitable for nothing, and they will be good for nothing. They can only enjoy because they think politics and governance are nothing but enjoyment. They like to enjoy power. Those who put them to power had some different ideas about them, but their evil thoughts put them to the place to enjoy. That is the only difference
If the election had been held in the night rather than the day, these would have won their election and would have enjoyed like anything
HOW IS THE INDUSTRIAL GROWTH POSSIBLE & HOW CAN IT GENERATE EMPLOYMENT
Well, this can be done by a simple method I shall discuss those in minutes and not in detail The first one would be:-
- Revive the famous but the old industries which at one point of time were under the Union Government of India The inputs in terms of the Government aids ought to be pumped and the output ought to be marketed professionally. This ought to be done on the principles of ” IGMSOD ” principles of marketing management. It ought to be borne in the mind that the prices ought to be comparable and the quality of the product ought to be of superior quality. The share of the market will determine the growth of the organization and the influx of the additions in terms of the employment.
- The ” subsidiaries ” and the ” auxiliaries ” in terms of the small scale industries will give many fillips to generate employment on the scale of the ” minimalistic- microscopic ” employment A large chunk of unskilled, semi-skilled and skilled employers would be employed no sooner than the large industries and heavy industries stars hitting the bullseye in terms of production and later marketing of the production
- The Government of the day has to be very careful to take care of all the PSU and their effectivity in terms of their effectiveness by themselves fixing the rates of the products produced by the private sector and the Government sector. In countries like China and Russia to name a few- the private and the Government organization has existed because the rates have always been decided by the Government and the Government also saw to it that the quality of the product remains the same always The comparable elements of rates for the produce manufactured between the private and the Government players remaining the same the market saw the flow of the product on the same scale and in the same pattern of the marketing scalability Thus in these countries even today the private and the Government players in the market and marketing have always remained the same, and the industries still is existing even today
This has never been the case if we take India as a country and the products manufactured by the Indian industries belonging to the private sector and to the Government sectors The difference in the attitude of the Government here and the private players here have made a helluva difference for the sectors belonging to the Government sectors to survive and in the long run these sectors belonging to the Government holding the industries have gone with the wind This is why we see a lot of Government sectors going to the naught This needs to be taken care of and revived The full-scale professional aptitude and the attitude ought to be kept under the loop and the variances ought to be groomed to run the organization professionally
The long term survival of these industries will create many a job, It also ought to be borne in the mind that the Government expenditure which is as good as 7 percent in India ought to be reduced as well In actuality our GDP generation is well over 15 % per annum but the expenditure being 7 to 8 & for the maintenance of the Government and it’s types of machinery the net GDP falls to about 7 % to 8& It is even less than that There and that makes the Government fallible to create the job employment
An increase in or an increase of over 1% on the net GDP creates one crore of employment. This is the simple equation and the set right formulae and if the Government from now onwards gives a proper sense to understanding the same and maintain or balance its expenditure then the creation of the employment would not be that hard However the enterprises that run here in this country under the aegis’s of the Indian Government ought to be run on the professional lines of ultra-modern management The accountability ought to be measured as against the fixed responsibilities Unless and until that is done and unless and until the Government takes the onus of fixing the prices for each and every product that is sold in the Indian market or is exported the scenario would not change, and the employment will continue to take a back seat.
Now that the Modi 2.0 version has come one really open his heart to the hopes that the revival and the structural changes in terms of modifications will make the Indian economy stable, sustainable and economically viable.