The Real Power Behind India's Government: A Decade of Economic Shifts and Corporate Influence

 

The Real Power Behind India's Government: A Decade of Economic Shifts and Corporate Influence

 

https://www.statista.com/statistics/531619/national-debt-of-india/

Debt Heading to 5 trillion US dollars According to This Report

India’s prevailing perception is that Prime Minister Narendra Modi and Home Minister Amit Shah are the true powers behind the current government. To delve deeper into this belief, I conducted thorough research to identify who has truly been steering the government over the past decade. The findings reveal an intricate web of influences and beneficiaries, predominantly involving major business entities and corporations. Many of these are owned by close friends of Modi and Shah.

Since the BJP came to power in 2014, the Indian economic landscape has experienced significant shifts. A notable trend is the substantial increase in national debt. From 1947 to 2014, India's total debt stood at approximately ₹55 lakh crore. In the last decade alone, this figure has skyrocketed by an additional ₹155-₹185 lakh crore depending on which Google report you want to believe in. India’s foreign debt is more than $650 billion US dollars.

The Economic Times highlights that India is projected to borrow a record ₹16 lakh crore for the 2023/24 fiscal year. According to their report: "But a fall in tax revenue and expected slowing economic growth next fiscal year will limit the government's ability to cut borrowing in the near term. Gross borrowing next fiscal year is expected to hit ₹16.0 lakh crore, up from an estimated ₹14.2 lakh crore in 2022/23, according to the median forecast of 43 economists."

A deeper analysis reveals that significant beneficiaries of these economic policies are businesses, particularly those with ties to Gujarat and large corporations with international footprints. This nexus between political power and corporate interests raises questions about the true drivers of governmental decisions. The alignment of policies with corporate benefits suggests a symbiotic relationship where political actions cater to and are influenced by business demands.

India's burgeoning debt is a cause for concern. In just one fiscal year, the government plans to borrow an amount equivalent to the debt waiver provided to large corporations. This borrowing spree raises questions about fiscal responsibility and the long-term economic implications for the nation. A parallel can be drawn to Argentina's economic crisis post the Falkland War, where excessive spending led to a currency collapse. Similarly, unchecked borrowing in India could devalue the rupee, diminishing the net present value of individual portfolios and escalating the cost of living, disproportionately affecting the poor. An increase in debt has a direct impact on the cost of goods starting from consumables to basic necessities. Surprisingly, the new tax structure under Modi gives tax breaks to those who purchase luxury items, which at one time was the other way around. The common people used to get tax breaks while the rich paid for high-price items, especially the imported ones, so that the local industry could strengthen and jobs stayed within the nation. Now in India, anyone can bid for projects and the local workforce could be outsourced as the import from China has crossed $500 billion a year. Modi is a genius according to many who believe in a Republican-style economy in India. History shows that the US has done better during democratic governments while the Republicans have added significant debt to the nation, which is exactly what Modi is doing in India.

Despite these economic indicators, a significant portion of the electorate remains oblivious to the ramifications of such fiscal policies. Many voters, including those with higher education, tend to vote based on religious and caste affiliations rather than economic performance. This blind allegiance to leadership, irrespective of qualifications or outcomes, can be detrimental to the nation's progress. The contrast between the economic strategies of Dr. Manmohan Singh, a highly educated former PM who spearheaded rapid growth, and the current administration's debt-driven approach is stark.

The current political climate also reflects a troubling trend of undermining competent leadership. Instances such as the imprisonment of a Chief Minister on allegedly fabricated charges highlight a systemic issue where governance takes a backseat to political maneuvering. The judiciary, too, appears compromised, with the Supreme Court often entangled in political games rather than upholding justice.

India stands at a crossroads where today's economic strategies and political decisions will shape its future. The intertwining of business interests with political power necessitates a more informed and vigilant electorate. As history shows, the fallout from fiscal mismanagement can be severe, and it's imperative for the nation to course-correct before it’s too late. It remains to be seen if there are leaders within the NDA alliance brave enough to challenge the status quo and steer the country towards sustainable growth and good governance.

I do not believe that voters in India fully understand what this government has done to their future. Protesting on paper leaks is not enough. They should file a legal case against the government for allowing such activities so that the government does not have to create these additional jobs knowing it has no money to pay for them. As I have pointed out, the tax policies are skewed to help the rich and shift the burden on the masses, which is what we are seeing. The next target of this government is to privatize all banks and turn savings into direct investments, which initially will do better than interest, but being risky, the entire portfolio could get wiped out once these investments start to lose money. Since there is no social security network set to help provide money in such events, the nation could be forced to fight for itself, and that will turn people against each other. This is precisely the reason you need an honest audit department that checks the corruption inside the government to stop it from leading the nation into darkness.