Today i saw a programme on cbc awaaz which had Mr Ajit Dayal talking about his views on the economy. There was one point which hit me quite hard and although i am not sure if i agree or disagree with him, i think i want to share it with my readers.
What Mr Dayal says is that we have actually flittered away our resources to industrial houses. The industrial houses basically got all of the resources - land, mining rights, spectrum- all at very cheap prices. Now the industrial houses basically to make abnormal profits had to invest in capex . So they invested and hence hired people in large numbers , and put money in their pockets. This lead to india growing at 9% .
Now according to him, we basically transferred then wealth from us ( indian citizens) to these industrial houses- who in turn returned a little back to us, in terms of salaries and jobs.
Now one can look at the way once the reforms happened, how these industrial houses have grown in terms of wealth.. Exponentially!!
This he says is not sustainable. Now these industrial houses basically buy a lot of luxury goods and stuff from outside of india , hence driving heavier consumption for those countries.
Its an interesting point of view which cannot be ignored. Its not simplifyable - but complex
What do you think?
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