This is a detailed article on the Financial crisis issues which India is currently going through. Article starts of Chidambaram's calculations on how his budget would help in India sustaining its growth rate and also explain how a whole country is dependent on one man's assumption. then the article takes us to through the assumption which our finance minister had taken while proposing the budget. It says the first assumption was to encourage investing heavily in Infrastructure. His assumption was that infrastructure development would eventually support producer there by increasing employability so the assumption was on the support of infrastructure to producers but not on direct financial growth. Article shows how such assumption had put our country's economy in a cycle of decline economic growth even if the GDP had recorded a growth but way below what was expected.
Other assumption was to increase foreign investments. Here the hope is that foreign countries will invest more and in return since the investment is done growth will be steady. But one should keep in mind that when foreign investments can move a project to next level, they also get the power to reap the profits from such ventures. In others its like we work hard and they enjoy the profits.He article points out that its not the policy that need to be shaped correctly but the governance in implementing the policy. Many examples where then shown on how public sector suffers in investing even though a private firm comes forward to develop a region's infrastructure.
Author finally concludes that India needs to concentrate on handling financial crisis on ground level rather than hoping and assuming that a third party investment or a heavy investment on a particular sector would increase the pace of growth.
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