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Tuesday, 25 March 2014

Political Stability is the Pre-requisite of Economical Stability

This April 2014, once again people of India are going to decide the fate of thousands of people going to contest the Lok Sabha elections. This Parliamentary election is more significant in a broader sense as the outcome of the election will decide the destiny of the country. Rights of the people, their basic needs like health, education, food and the allocation & distribution of national resources more and large depend on this election.

Political stability in a country can lead to positive cascading effects in socio-economic scenario too. Only a healthy and conducive state environment can induce the people to invest in the productive and developmental activities. Good infrastructure can further reinforce the decision of entrepreneurs and favourable taxation and banking policies motivate the investors to spend their surplus money in feasible business options.

People across the world are desperately searching for lucrative business opportunities, despite of great potential and resource availability multinationals and foreign investors are reluctant to invest in India due to political instability and unnecessarily stringent laws. India witnessed economic reform in the year 1991, but even after the passage of two long decades our economic policies are still rigid and unfriendly in numerous manners.

In 2012, government decision on the approval of hundred percent FDI in retail sector was opposed by many political parties  and groups on a large scale. Realty sector which was on the bloom of its growth in the early years of past decade is losing its shine in the recent time. The reason for this lack lustring growth is the scarcity of funding and investing in the Indian realty sector. Various real estate giants are these struggling for proper funding.

The potential industries in India are Education, Entertainment, Health, Banking, Agriculture, IT and Technology these sectors experienced  fair growth in consecutive years. But, industries are still waiting for the desired outcome and it is only possible in a conducive and healthy business environment which can only emerge in a politically stable conditions.

Multi-lateral trade can generate multi-dimensional benefits like mobility of resources, transaction of ideas and technologies, optimum utilisation of resources, expansion of market, employment generation and cultural developments.

Political stability is not only essential for FDI, FII and establishment of MNCs, but it is equally indispensable for domestic organisations, Indian MNCs, MSMEs and cooperatives. It is the high time for Indian voters to choose a right political party which may give a right direction to the country and lead the country towards inclusive growth.    
                                                                                   By Kislay Pandey - Corporate Matters Advocate 


  1. Unemployment and corruption are the biggest hindrances for India growth.

  2. Looking at present scenario it is difficult to predict a politically stable government. The people of India are stuck in a vicious circle where there is a requirement of political stability for economic stability and economic stability is not expected in this unstabilized political system....