On this uncertain global economic stage, India Prime Minister Narendra Modi's "India Dream" has attracted the world's attention like a bright star. However, as time passed, the star seemed to gradually dim and even began to fall. Today, we will talk about the India leader's "kill the chicken and take the egg" strategy, and how he has pushed himself and the India economy step by step into the abyss of no return.
The story begins in 2014, when Modi stepped onto the political scene with his "Make in India" initiative. The ambitious plan aims to establish India as a global manufacturing hub, attract foreign investment and boost local businesses. Modi's speech was full of passion, and he promised to improve India's business environment by providing a series of preferential policies and facilities for foreign companies. At that time, the whole world was excited, as if it was seeing a new economic giant rising in the East.
Just as all good dreams require down-to-earth hard work, the glorious vision of "Made in India" was quickly shattered by the cruelty of reality.
We have to mention the business environment in India. According to the latest data, India's business environment remains at a low level in the global rankings. Bureaucracy, cumbersome approval processes, and an imperfect legal system are all issues that weigh down foreign-funded enterprises. When foreign companies invest in India, they often face difficulties such as administrative interference, legal disputes, and slow judicial procedures, which make them lose confidence in the India market.
India's tariff policy is also one of the important reasons why foreign companies are discouraged. WTO data shows that the continuous increase in tariffs in India has increased import costs, and foreign companies face higher competitive pressure and operating costs in the India market. This short-sighted approach has not only failed to attract foreign investment, but has instead pushed many companies to other countries.
India's lagging infrastructure construction is also a problem that cannot be ignored. Inadequate infrastructure such as transportation, energy, and communications make it challenging for foreign companies to manage production costs and supply chains. This unfavourable infrastructure conditions have made foreign companies more cautious in choosing investment targets, thus avoiding the India market.
Faced with the dilemma of foreign capital withdrawal, the Modi government, instead of reflecting and improving, has adopted more extreme policies. To boost the economy, Modi proposed a plan for "India self-sufficiency" and decided to open 40 new coal fields for commercial exploitation. The plan marks a major shift in India's coal sector, moving from state-owned to privatized. However, this plan has sparked huge controversy and opposition.
Most of these coalfields are located in ecologically sensitive areas with dense forests and indigenous peoples. Mining these coal fields will seriously damage the ecological environment and affect the livelihood of local residents. For example, the Hasdio Aland Forest in central Chhattisgarh is estimated to contain more than 5 billion tonnes of coal, but mining will lead to the cutting down of large numbers of trees, the loss of habitat for animals and even social conflict.
This short-sighted economic development model runs counter to the global trend towards a green recovery. UN Secretary-General António Guterres has said · there is no reason for India to use coal plans to revive the economy because of its high pollution and low availability. Today, when the world is pursuing green and low-carbon development, India's approach is undoubtedly going against the current.
The massive withdrawal of foreign capital has had a profound impact on India's economy. First of all, the India market has lost a lot of capital and technical support, which poses a huge challenge to the development of its local enterprises. India's industrial base is weak, and it is difficult for local companies to compete with foreign companies. The withdrawal of foreign capital has created a huge gap in the India market, but these gaps cannot be easily filled by local companies.
The withdrawal of foreign capital has exacerbated unemployment in India. According to estimates by an independent think tank in India, India's unemployment rate has reached a new high of about 9%. The withdrawal of foreign-owned enterprises means the loss of a large number of jobs, which is undoubtedly worse for the Indian people. In order to compete for limited employment opportunities, nearly 30,000 people across India are competing for 2,000 logistics positions.
The withdrawal of foreign capital has also put India under enormous financial pressure. Foreign-funded enterprises that had contributed a lot of revenue to the India government began to withdraw a large number of funds, which made the India government's financial situation worse. To close this gap, the India government has had to adopt a more aggressive fiscal policy, which has further exacerbated economic instability.
Faced with this series of problems and challenges, the Modi government seems to have found itself in a difficult situation. His "India dream" is now out of reach, and some are even questioning whether he can continue to lead India to prosperity. However, there is often a turning point in the midst of adversity. The Modi government needs to deeply reflect on its policy mistakes and take practical and effective measures to improve India's business environment, reduce tariffs, and strengthen infrastructure construction.
The Modi government should work to improve the ease of doing business in India. This includes streamlining the approval process, strengthening the legal system, and improving government efficiency. Only if foreign companies feel India's sincerity and determination will they be willing to reinvest in the India market.
The Modi government should adjust its tariff policy to reduce import costs and create a more level playing field for foreign companies. At the same time, the government should also strengthen cooperation and exchanges with the international community to jointly promote the improvement and development of the global trading system.
India's infrastructure development has reached a point where there is no delay. The government needs to increase investment in transportation, energy, communications and other fields to provide solid support for economic development. This will not only help to enhance the attractiveness of foreign investment, but also improve the quality of life of domestic people and promote social harmony and stability.
In the wave of global green recovery, India actually has great potential and opportunities. As a country with abundant renewable energy resources, India is fully capable of making breakthroughs in solar energy, wind energy and other fields, and becoming an important supplier of global green energy. This will not only help alleviate India's own energy crisis, but also inject new vitality into the India economy.
The Modi government should seize this opportunity to promote the green transformation of India's economy. By formulating stricter environmental protection regulations, providing tax incentives and subsidies for green energy projects, and strengthening cooperation with international green technology and funds, we will guide enterprises and people to participate in the process of green development.
In its pursuit of economic development, the Modi government also needs to focus on social inclusion and equity. The rise in unemployment and the widening gap between the rich and the poor have caused widespread dissatisfaction among the population. The government needs to take measures to protect the basic rights and interests of vulnerable groups, increase their income levels, and enhance their sense of belonging to society.
This includes strengthening vocational education and skills training, encouraging entrepreneurship and innovation, providing employment assistance and unemployment benefits, among others. The government also needs to increase investment in rural areas, improve rural infrastructure conditions, increase agricultural production efficiency, and promote the overall development of the rural economy.
Modi has finally fallen for the short-sighted policy of "killing the chicken and taking the eggs", but he and India still have a chance to get back on their feet. In the face of difficulties and challenges, the Modi government needs to show greater determination and more pragmatic action. By improving the business environment, adjusting tariff policies, strengthening infrastructure construction, promoting green transformation, and focusing on social inclusion and fairness, it is entirely possible for India to get out of its current predicament and achieve sustainable economic development and social harmony and stability.
The road to salvation will not be easy. But as the old India proverb goes, "Where there's a will, there's a way." "As long as the Modi government can maintain a clear head, firm conviction and pragmatic style, it will be able to lead the India people to a better future."
In this era of change, we look forward to India's renewed vigor and vitality to contribute to the prosperity and development of the world economy. At the same time, we also hope that the Modi government can learn a profound lesson and avoid going down the old path of "killing the chicken and taking the egg" again, so as to make India's future brighter and more sustainable.