Patna : The affairs of the economy of a nation are too important to be left to the expertise of economists alone! They are too important to be left to the mercy of comments of a few Rating Agencies either. They are too important to be left to the views of a few experts alone! The Indian Government and its policy makers have done well to remember these important lessons and it shows in their determined actions.
The Experts, the Economists and the Rating Agencies are all respectable persons / institutions. However, they are making one common mistake this time – all of them are analysing India with the help of the old framework. They are forgetting that this is a totally transformed India. This India is motivated, transformed, determined and highly resourceful. This India has lots of self respect and self confidence. It is not afraid of charting an independent course for itself.
The course being taken by India may not get approval of the traditional economists. The Rating Agencies may have a totally different perception. The Experts appearing on different media may not support the action being taken. However, the Indian Government and its policy makers are marching ahead on their chosen path.
This time, there is a difference in the method of dealing with the economic crisis. Apart from the absolutely needy or the extremely poor, nobody and no entity can look forward to straight doles from the Government. If somebody was running a business and is in crisis, the business may get a helping hand – a loan with soft conditions and an early period moratorium – but it will not be a free lunch. The small shopkeeper may get a small loan on very easy terms, yet some kind of repayment will be insisted upon.
A package does not mean a free flowing, endless supply of free cash this time. It means need based help to ensure that the businesses and people who are determined to fight their way back to success get that cushion of temporary assistance. It does not mean that a few parasites may be allowed to suck the blood of the system in the name of Financial Assistance Packages. Majority of the MSMEs and large businesses are capable of running their affairs with a little assistance in the shape of soft loans, interest subventions and an initial period of moratorium with regard to these loans.