This is with reference to “Finance Minister riding two horses” by Dr Bharat Jhunjhunwala, DE Feb. 15, 2018.
Foreign Direct Investment (FDI) comes to India not due to economic policy or good position of fiscal deficit or political stability. Huge population of India results in huge demand for goods. High growth in future population ensures increase in demand. This demand attracts FDI.
Budget 2018 is a mere bundle of free Cash Distribution Schemes. Money collected by the Government through VDIS, demonitization, GST, Income Tax and different cesses shall be distributed for votes in general election 2019, among people in the name of romantically named welfare schemes, which are quite unproductive.
After implementation of this budget fiscal deficit shall reach to the level of 4.75 percent of GDP and inflation will breach the level of 6.5 percent. Every item shall face price rise. Who will buy our costly manufactured/produced goods in the international market?
Recently, the Government raised import tudy on sugar from 50 percent to 100 percent so that Indian consumer pays more money to buy one kilogram of sugar. Within a period of six- seven months, Indian consumer shall have to pay Rs 75 for one Kg of sugar.
If Petroleum prices do not fall or interest further in 2018, prices of all commodities shall touch the skies in 2019.
Simbal Camp, Jammu