Monday, December 21, 2015

When our dirty & Ill - timed Internal politics supersedes the External economic push!

Brent Crude trading at ~ $36/barrel and West Texas Intermediate at sub $35/barrel, these prices are so encouraging for country like India which imports more than 70% of its energy needs that multi-year floored crude prices would directly give the economy a great impetus. A push that would be so needed to raise our growth trajectory in 8 - 9% range. A range of growth which is achievable with little help from our internal political parties' consents. One of the reform which would steal the lime light would be the passage of GST. A standardized tax applicable on all goods and services. We have a structure ready with deliberations on. But if these deliberations are held in a manner that it blocks the logical flow of action then it's appalling. GST's implementation is doing the rounds for quiet sometime now and when finally it seems happening and the act getting enacted and formulated with all nitty gritties being discussed, National Herald happened.

When the government wanted GST so badly to make the "Make in India" campaign successful and other schemes launched by our ambitious PM a story to remember, this revelation of National Herald (NH) Scam was badly timed. Understand this, the scam has already happened, facts and figures are known, the alleged convicts are known and they are here to stay and you can get hold of them yet again but revelation in the beginning of the winter session was really pathetically timed. Why timing is critical because we have yet again lost a complete session of our Parliament which was so needed because of this NH Scam revelation.

GST lost to NH Scam. We are left with 3 working days of winter session and other amendments, enactments and policies are lined up, lets see how can the government push for the same. Gandhis were summoned on 19th Dec, if they were summoned on 9th January, 2016 what could have changed? Atleast we could have saved our winter session of parliament. When the government knew that anything but GST is so desired they should have played smart.

Anyways, in BJP vs Cong tussle the economy was punished and hence, we are loosing at least 4-6 months of time before we get the desired and much needed reforms to get tabled and discussed. One should realize that the external economic factors are not in anyone's hand, hence, to get their act together it is important to be prudent and get the maximum out of the external factors. With USA now in line to start exporting its Crude oil after four decades, India might again be reaping benefits in the coming months.

Timing and Prudence are very critical factors that the Government should now take a note of, else we would yet again miss a growth propelling decade.