According to a 21 nation Pew Global Attitudes Survey, Indians have lost more faith in their economy than the people of other countries. Pessimism prevails. Only 38 % Indians are satisfied with the way things are going in their country. It is an 18% drop since last year and also among the largest drops in the countries surveyed in 2011 and 2012. China beams with optimism. 82% Chinese see a rosy promise in the future of the country. Indian figures are closer to the 29/30 % figures in the US and Europe ravaged by recession.
There are of course contrary views. The Director General of CII has claimed that the reality is not so gloomy. He said that India was going through economic slowdown. But the medium term prospects of the economy are very positive because of the country’s strong fundamentals. However, it may not inspire confidence. Too much importance is attached to India’s strong fundamentals. Repeated assurances from the Prime Minister and the Finance Ministry seem illusory. The trouble is that official policy is not well defined and is vitiated by corruption and political infighting which cripple its execution. The Opposition is heedless of the economic consequences of its obstructive policy to gain power. The main causes of the slump in confidence among the “Aam Aadmi” are the scorching prices of essential commodities, growing unemployment and the widening rich-poor divide because of skewed incomes. The fiscal policy of the government and the monetary policy of the RBI are unable to contain inflation.
