India is in a serious crisis of confidence: Yashwant Sinha

India is in a serious crisis of confidence: Yashwant Sinha

Shwetlana Tripathi

New Delhi: Asia’s third largest economy has been pummelled by a selloff in emerging markets. Rupee has been the worst performer in Asia this year. The Indian rupee touched a record low of 68.85 per dollar this year, and is down nearly 20%, despite consistent efforts by policymakers to prop it up.

The country has succumbed to various problems in the economic structure today, some of them namely food inflation, monetary crisis, restrictive labor laws and weak infrastructure, making it difficult for India to attract exports. Both of these factors have led to a swollen current account deficit, which needs to be financed by the foreign capital, which is once again a difficult goal to be accomplished.

Bharat Bhagya Vidhata, a special series by Zee Media, through each of its episodes, aims at showcasing some of the pertinent issues facing the country and discussing solutions to them. ‘India Ka Agenda’ episode this week discussed the boiling issue of inflation, with the guest being former Union minister Yashwant Sinha.

Mr Sinha began with a detailed description of inflation. “For the past 15-20 years, prices of commodities have begun to rise, he said. Consumer price index, consumer inflation and food inflation have all risen by 10% since then.

The senior BJP leader further said, “In 2008-09, taking into account the US sub-prime crisis, government announced a stimulus package in order to prevent slowdown in the country. Consumption expenditure was increased by rupees two lakh crore. In this way, this large amount was injected into the system and this led to high inflation.”

Sinha also held the UPA government guilty of doing nothing to prevent rise of inflation, which in turn hit the common man hard.

The former finance minister was of the view that the food subsidy scheme of the government should be kept on hold as it would put a huge burden on fiscal deficit.

The host of the show Mr Sudhir Chaudhary, summed up the program by describing the state of economy as being in a bad shape, with the rupee depreciating and growth being in the negative.

However, Yashwant Sinha ended on a positive note, wishing the very best to the Indian economy and said that he hoped it will soon come out of the fix that it was in.

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