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An Essay And Article On Economic Crisis Of India
India is sadly caught up in Ian economic quagmire so intense and so pronounced that our rulers at present are faced with a very ticklish situation not knowing exactly what to do. That things have come to such a sorry pass compels us to view with scorn the dismal record of the successive governments since we achieved independence. The present serious state of affairs is a cumulative consequence of the accumulated acts of omission and commission, of sins and pitfalls of our planners and rulers. We are virtually in a debt trap and our balance of payments position is disconcerting. We have a foreign debt burden of lakhs of corers of rupees which is mounting up further with every successive dose of borrowing from abroad. True that as per latest figures (Feb. 2007) our Foreign Exchange Reserves have touched about 200 billion dollars mark, but this situation is just a window dressing in view of the stark fact that this impressive figure has resulted from heavy dose of investment by multinationals and not from our own earnings. The facts of economic crisis are hard to hear but its the truth. Economic crisis and raised to a higher extent and the rupee has got devalued. Our leaders in the Government boast of a high growth of GDP, its benefits are not percolating the common man, particularly the lowest strata of society. In the Human Development Index we occupy one of the lowest positions. A good chunk pi our population is still living below the[pic] poverty line despite our claim that the economy appeared to have “decidedly taken off and moved from; phase of moderate growth to a new phase of high growth. The very honour 01 India is at stake and yet we find we are not yet wide awake to the seriousness of the situation. The measures adopted so far leave much to be desired and it is doubtful whether the measures contemplated to he adopted in future will be imaginative and sincere enough to bale India out of the present predicament. And yet it will be worthwhile to analyze the causes that have led to the present sooty state of affairs. They are responsible for economic crisis.

Causes For Economic Crisis

In the first place for economic crisis corruption in public life and in administration right from the political boss down to the lowest public servant has been largely responsible for failure of our planning. It is common knowledge that hardly twenty five per cent of the total funds allocated reach the beneficiaries. The major chunk is appropriated by the political bosses themselves for purposes of fighting elections and for filling in their own coffers. A good deal of it is eaten up in commissions clandestinely given to officials big and small. Thus full use r-, not made of the scarce resources of the country. Astronomical figures are sanctioned; bur a tiny percentage of them reaches the beneficiaries. Deficit budgets are prepared, government resorts to borrowing and in this way debt-, go on mounting without any corresponding benefits accruing. this obnoxious state of affairs has been going on right since the achievement of independence” It has intensified even further during last few years resulting in huge deficits. Role Of Political Leaders in Economic Crisis The unscrupulous politicians and officials and their corrupt and are biggest culprit for economic crisis, they have- looted the country beyond measure bringing it to the brink of disaster. Recently a number of mega scams involving thousands of corers of rupees have been discovered. The urea scam in which figures the name of a former PM’s son along with others, the fodder scam in which the former CM of Bihar was found to be the main culprit along with an army of predators, the letter of credit (LOC) scam involving the Chief Minister of Assam, the securities scam involving the big shares bull Harshad Mehta the Fake stamp papers scam involving about Rs. 60 thousand crore besides a number of have exposed beyond an iota of doubt...