In such an economy, financial influencers do have solutions on how to buy a one crore car in 10 years, or a crores-worth house before your retirement. However, the economic reality that people have been affected by unemployment, job cuts, stagnant incomes, toxic workplace environment, workplace discrimination, price rise, etc. does not seem to interest them. https://thewire.in/economy/indian-economy-inflation-adani-press-freedom-politics
Apart from these economic issues, some social and political issues also affect the economy.
Inflation
Economic commentator Vivek Kaul wrote in Mint that India’s troubles on the inflation front may persist as a big economic problem in 2023. Explaining one of the reasons for this situation, he says, “The one-year period ended 2 December, total bank loans have grown at a very fast pace of 17.5%. Of course, some of it is because of the base effect. Nonetheless, loans of all kinds have been growing rapidly. Retail lending of banks grew by more than 20% in October, the highest since the COVID-19 pandemic began. Lending to services businesses grew by 22.5%. Further, lending to micro and small industries and medium industries grew by 20.5% and 31%, respectively.”
“If lending continues to grow at this pace, then the chances of inflation falling are low. Higher retail lending will create private consumption demand, leading to more money chasing goods and services, and hence, higher prices. Higher lending to industry and services will create more jobs and feed into wage inflation in the process,” he says.
Is taxpayers’ money safe?
Quartz had in December said that “if the Adani Group’s bubble bursts, the Indian stock market may experience a ripple effect.” It said that a massive default by one or several companies of Adani will rock not just the equities markets but India’s economy overall. This is because the firms are embedded in the country’s infrastructure, said the article.
Mental health
As per a 2018 report in the Times of India, at least 150 million people in India need therapy, but only 30 million people seek help. The COVID-19 pandemic has made the situation even worse for many. More than 10% of adults in India face some mental health illness. To deal with this burden, there needs to be a proportionate number of psychiatrists, psychologists, and therapists. Along with that, people need to be able to access and afford treatment.
Hindutva politics
Several women have been posting on social media about their ordeals to find a rented accommodation in the financial capital of India because of their name. A friend in Bombay didn’t even disclose her name to the flat owner because she could lose a good, affordable house, in a decent, safe locality. She could do this because her boyfriend was Hindu. So only his name was on the agreement.
Apart from finding a house, economic exclusion could be seen in even securing a loan. The Deccan Herald reported how a Muslim woman’s loan proposal was rejected despite offering a property worth Rs 2 crore as collateral and all necessary documents. Her uncle – a bank officer – had suggested her Muslim name might have played a role in the rejection.
Declining press freedom
There is a clear correlation between economic freedom and press freedom. Countries with greater economic freedom tend to enjoy higher degrees of press freedom, a commentary in the Heritage Foundation said.
Attacks on press freedom – such as jailing journalists, raiding their homes, shutting down printing presses, and using lawsuits to thwart reporters – have measurable effects on economic growth, The Conversation had reported in April 2021, citing data.
by Taniya Roy
31/01/2023