Strategic economics imperative

Our former RBI Governor Raghuram Rajan, whose name is echoing in every economic horizon of the world despite being a professor at the University of Chicago, has expressed a different kind of fear of Recession and has warned the countries that are sitting in the economic crisis of the world that if strategic economic policies and business systems are not formulated. Then the global initial wires of the boom will also disappear. The era of the concept of global village as propounded by scholars including Marshall McLuhan has risen and is now beginning to wane as each country formulates policies only for its own personal commercial interests. Raghuram says that trade-trade methods are not a hindrance but the international monopoly running under the barricade of trade policy will destroy the world market in stages. He has identified the slowdown as a long shadow of the current Sino-US trade war and a global recession is certain if the trade war continues. Raghuram's apprehensions are supported by the retrenchment of employees by giant companies like Google and Swiggy.

Raghuram has made it clear to the Government of India that any country should remove even the slightest image of anti-minority in order to create the best business environment. Because every great industrialist is now looking for a new role other than America and China. Raghuram has said many interesting things about India entering the list of top ten export oriented countries in the world. Raghuram is known as an in-depth study of recessionary prospects and a prominent economist. Is. He was the first to announce the prediction of the severe global recession of 2008, but then he clearly said that there are no circumstances that the recession of 2008 can be postponed or considered impossible and that the recession of 2008 will take the whole world in its fold and indeed it happened. But this time, if the world community is aware of the possibility of recession that he declared, the possible recession can be converted into a boom. Raghuram's earlier prediction that came true was an economic recession and the current fear is a commercial recession, which may take the form of a full-blown recession going forward.

Countries like India still have a high percentage of profit in the total revenue of commerce. Also, the concern expressed by Raghuram so far is actually the depression that will follow the recession. Without mentioning the new lobbying that has started in international trade, he strongly insisted on calming the trade war between the US and China, otherwise the global trade will be divided into two parts and eventually the recession will reverberate like a deluge on both sides, i.e. those who side with the US or China. Countries will also fall into recession just like these superpowers. About the collapse of the Indian rupee, Raghuram expressed strange confidence that it was an auspicious sign. He pointed to the strength of the rupee's future and also said that the rupee is only a negative resistance to the rise of the dollar. It will not take long for the rupee to strengthen again. There is no outright recession in India right now but economic laxity. The aftershocks of demonetisation and GST are still lingering.

GST is an overnight tax system with a shock, so it will be phased out gradually but the effects of economic panic that has spread to industrial sectors due to the sudden upheaval of demonetisation is still visible. Those shocks have been alive due to Corona and lockdown. Just as the RERA Act brought more stagnation to the ongoing recession in the real estate market, new industrial ventures, investments and giant diversifications have stalled due to the fear of the income tax bill, which will still take time to normalize. An average of 30 to 40 percent reduction is going on by the units having production capacity in the country. As much as the production is now, the market is not accessible to every producer. Also there is a shortage of employment in the job sector. Foreign investors have started withdrawing from the Indian market following the rain. The NDA government at the center did strange experiments on the Indian economy but after that the government could not introduce any specific new economic policy.