India used to be known for loan dependent county. Many
developed countries kept India under third world country and never took India
comment seriously.IMF, ADB, WB and other rich countries used to fund India's
social to infrastructure initiatives.India external debt level ballooned and situation stuck
India wherein Indian Government use to find themselves in a situation of debt
payment default. That triggered mortgage of gold to get some cash in order to
service external debt.
That day till today, Indian Government turned the Table
upside down and the credit must go to ex prime minister of India Mr. Manmohan
Singh.It is universal truth that Manmohan Singh is one of the
sharpest economic minds of India. During his tenure, he tried his level best to
fund social to infrastructure projects but in some cases he failed completely
and that is Defence modernization, infrastructure and manufacturing.
The unexpectedly
high oil price kept him at bay as most of fund used to go to pay for oil import
bills which limited his chance to divert that money. The higher subsidy funding
to keep the masses happy also impacted the prospect and that led to a situation
where modernization segment kept under freeze mode. The move impacted the
growth of Industry and Indian economy went for toss.
The entry of Mr.Narendra Modi as Prime Minister brought luck
for all. The global metal to oil prices went for toss. The oil prices came down
from $120 to $30 and helped India to reduce oil bill. Based on the report
during FY 16 India saved $32 plus billion. The lower oil never prompted
government to reduce the oil prices accordingly but smartly kept the price at
the upper limit and kept generating valuable revenue for government. Mr. Modi
wasted no time in deploying those savings in infrastructure to defence to other
sector in order to kick start economy. The subsidy went down dramatically and
that saving went into modernization of Railways.
Modi took proactive steps in attracting International
companies to start their manufacturing in India under "Make in India"
initiative.Coming back to core question that who is helping India to
modernize its Defence to other sectors are none other than Oil producing
countries. The rise of shell oil
producers took market shares from countries like Saudi Arabia and all. That
prompted price war and also an initiative to kill shell oil producers.
It is instrumental that international oil price continue to
struggle for next one or two years and it will help India to improve its
economy as well as reduce its external debt to reasonable level.
I would like to thank oil producing countries for their
consideration of maintaining market share compared to stable and profitable oil
prices.
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