Politics and Economy-an intertwined study

he government must maintain a strong supervisory oversight over its companies ensuring bureaucratic inertia is not instated and take transformative steps.

The economy of India exhibits the nature of a mixed economy. The companies present with their valuations and the public sector enterprises together conclude the monetary capacity of the nation. Every political party moreover try to favour certain business entities especially public sector undertakings(PSUs) by directing quinquennial write offs the state controlled banks for these companies.

Just because employee attrition and retrenchment are one of the bonafide apprehensions of the economy that could result in large level unemployment , a high degree of job security is granted to government employees. But for the public sector the very existence of companies can be addressed if they outperform in consecutive fiscal quarters.

The main reasons for which the private sector upto the same time has not got immense business security due to its uncurbed ownerships of sundry intermediaries necessitating the banks to intermediate into these matters for their banking security and timely reimbursement of the profound loan granted.Another big reason is the non-existence of time bound bankruptcy processes in which the defaulted amount can become difficult to get. Still the massive population of India and the quantum shift in the technology of capital markets in India however still arouse foreign business corporations to invest in India.

The credit market in India is prone to perilous pecuniary downfall resulting in atrocious insolvency. We are no more in the era where congress is prevalently incumbent so the disinvestment policy in all likelihood is not to re-occur but there is a prompt necessity for the employees of these financially distressed enterprises to re-skill and up-skill their people ensuring burgeoning growth of the economy and their respective financial entities.The government must maintain a strong supervisory oversight over its companies ensuring bureaucratic inertia is not instated and take transformative steps.

Authored by: Rishav Roy (Student Class 12 La Martiniere For Boys, Calcutta)

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