The UPA Government led by the Corrupt Congress Party should be congratulated for destroying the India’s employment rate which has dipped to 38.6% in 2011-12 from a high rate of 42% which was at the end of BJP Regime in 2004-05.
Political experts are of the view that whilst a series of reforms are in the pipeline, barring the possibility of coal price pooling being approved, the other reforms are likely to have a limited impact on the real economy. The Corrupt Congress’ attention is now likely to visibly tilt towards populist measures thus leaving just 60 days for the window of reforms.
Coal sector reforms Of the bucket list of reforms, the expert was of the view that the announcement of coal sector reform in the form of coal price pooling seemed most likely. Furthermore, the expert held the view that a new auctioning mechanism for coal blocks and the installation of a coal sector regulator was likely by end-July 2013.
FDI Liberalization in Telecom, Pharma, Defence Unlikely to Impact India Political experts are of the view that even if this was approved, it is unlikely to translate into inflows immediately due to procedural obstacles on the ground as the next Government may not honor and uphold the clearances given by the Congress.
Oil Price Hike The expert believes that the monthly diesel price increases are likely to continue.
Congress party’s Cash for Vote Schemes
Congress high command attributed the 10% increase in the seats it won in the 2009 General Elections vs the 2004 elections was due to the MNREGA Scheme which Guaranteed 180 Days of Employment Money for Rural Voters without any yard stick to measure the performance. This Direct Benefit Transfer is Direct Cash for Votes Scheme.
Rajasthan introduces pension scheme for workers in the unorganized sector and saw its Chief Minister’s popularity ratings shoot up. And on all India basis the Congress is desperate to pass the Food Security Bill and ensure Large Chunk of Vote Bank to remain Loyal.
The Congress Government on its way out will empty the coffers and sovereign credit rating downgrade continues to loom large over India.