PM's Punditry: Biggest Irony at G20

The cut off between Singh’s dogmatism abroad and his inability to solve things at home is the representative of his policymaking team. The initial years of the present government’s reign saw the GDP growth of percent of 9 percent and there was the discussion among the international commentaries about the BRICs economies which has faded away now. Currently they are facing criticisms from various agencies and the business leaders about their failure to bring in reforms, which they have been continuously refusing to acknowledge.

Instead they are presenting validation of their effectiveness by listing out that, despite of the sharp slowdown in growth, India still continues to outpace the other developed economies and their GDP is still higher than the other economies in the world. They don’t realize that in a country of more than billion population, without much infrastructural advances and double-digit inflation counts, it is still considered as a very high order of underperformance.

It is high time that Singh’s government learn a lesson from the Eurozone crisis, especially that of, the recklessness of living  beyond one’s means, not executing tough reforms, and setting up non-performing “social security” nets which slows down the growth. The decision taken by the UPA government of building a first world social security net has created havoc with macro fundamentals.