Especially to members of IF and thier families <!--emo&--><img src='style_emoticons/<#EMO_DIR#>/smile.gif' border='0' style='vertical-align:middle' alt='smile.gif' /><!--endemo-->
My wish, need lot of money this year. <!--emo&--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo-->
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Have a happy Diwali</b>
The Pioneer Edit Desk
Let darkness be dispelled, hope be rekindled
As media reports over the past week have made out, a sense of gloom has descended upon the nation from Kashmir to Kanyakumari. There is nothing uniquely Indian about the looming despair -- societies across the world, including what used to till recently be referred to with admiration and envy as the 'affluent West', are reeling under the impact of the financial meltdown triggered by the unregulated greed of the movers and shakers of the American economy. The ripple effects are being felt far and wide, especially in emerging economies like India where the collapse of the once-soaring share market has been spectacular and the absence of matching Government efforts has made the situation that much more worrisome. Runaway inflation, which has placed essential commodities beyond the reach of most people, and a slowing of growth in the job market have forced cutbacks on expenditure by individuals and families. Add to this the mounting sense of insecurity that has come to grip the masses on account of unrestrained terrorism and there is little or no reason to feel cheerful this festive season. The crisis of leadership has begun to manifest itself in the most obvious manner. If there has been any decisive action in recent times it is by way of the Prime Minister pursuing the India-US civil nuclear cooperation agreement without allowing himself to be distracted by domestic problems demanding Government's immediate attention. On this front too, the nation has been taken on a ride, its trust violated by a hugely flawed deal that panders to American business interests at the expense of India's strategic interests.
Yet, perhaps we should not become too despondent or subscribe to the view that doom shall inevitably follow the present gloom. Let us not forget that the Indian economy is still largely dependent on domestic demand. External trade/demand counts for less as opposed to, say, the Chinese economy whose growth is export-driven. There is so much pent-up demand here, in a country of a billion people, that we a re a world unto ourselves. As the global econnomy slows down, we have enough of entrepreneur tradition to start tailoring supply for the domestic market, thus insulating the national economy from external factors to a large extent. We will sell smaller and cheaper apartments, smaller and cheaper cars, find IT markets in State Governments and so on. As the world GDP grinds to zero growth, we will still grow -- if the worst case scenario is to believed -- at 6.5 per cent over the next two years. This is not growth to be sneered at. When the world starts to recover, in two years or so, we will be better positioned to take advantage of the revival. Stock markets do matter, but they cannot become the only index of our well-being.
The dampening of the popular mood prior to Diwali is understandable. It is also understandable why the usual tide of shoppers was absent this year -- liquidity crunch does not affect corporates alone, families are also hit. But while financial prudence is called for, there is no reason to hold back the spirit of celebration. Light a humble earthen diya and let its glow spread warmth and rekindle hope. This ancient land and modern nation state of ours has survived far worse crises and emerged triumphant in the face of severe adversity. This too shall pass.
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