When real economic experts or some other impartial people told that India’s economy or any other countries’ ought to rely on the development of their own economy, pro liberalized economic experts and short sighted people labeled them as ancient humans.
After witnessing a great catastrophe in the current account balance and rupee value in India and most other emerging markets recently thanks to enormous outflow of hot money, people who are calling themselves as modern age people lessened their voices against real economic experts and unbiased people and began to realize their mistakes.
This is evident from the words of Former IMF chief economist, chief economic adviser to the Finance ministry of India and present (23rd) governor of the Reserve bank of India Mr. Raghuram Rajan that since the value of rupee moved steadily, India had to boost national savings to provide financial assistance to major investments by reducing reliance on foreign capitals.
As enormous tax concessions granted to the private sector have failed to improve the country’s economy, Indian government has to think about the enhancement of public investments by decreasing these tax concessions. An increased number of public investments would create more employment opportunities to the people thereby would boost the purchasing power of people which would in turn augment the production and sales of the products of both private and public sectors which would increase the gross domestic product (GDP).
Since the real economy does not lie only in the growth of rich people, as private sector enterprises could not uplift the lives of lower middle and deprived people, the government of India tries to consider about more public investments. At the same time, reasonable amount of private sector investments have to be allowed. Then only consumer/public in the economy can get satisfactory service.