Corporate luminaries' exaggerate economic difficulty

Corporate Affairs Minister Veerappa Moily’s statement that "corporate luminaries" are exaggerating the difficulties is largely true. It is true the growth prospects of the Indian economy are somewhat sluggish. But it is not as bad as that is being pictured by global financial agencies and credit rating firms. The slow growth of the Indian economy is partly due to the impact of European and American economies. It is feared that continued recession in Europe would be felt around the world. Questions are being asked about the viability of the European Union itself. There is therefore a strong case for the European countries to abandon no-liberal policies and for creating an interventionist policy, which would reinvigorate the industry and thereby create more job opportunities, which will generate more effective demand. Monsoon deficit is also a cause of enormous strain in the overall performance of the economy. Moreover, the crony capitalist of India have an exaggerated negative view of the Indian economy. But the hue and cry raised by them is largely due misconceived perceptions and certainly motivated to gain concessions from the government. The tendency to exaggerate the recent difficulties and comparing the present situation to that of 1991 is rather meaningless besides being irrational and irrelevant. However, unless there is improvement in governance the situation may become more difficult. Dr.C.Murukadas , The Times of India, 3 Sept., 2012