Is India under recession, or is it a correction: Few reasons and thoughts for all

India is consuming country with a population of more than 1.37 Crores by the end of this year. It has a peculiar diversity, which needs to be understood.

1.    There is urban population, which is again divided in three segments. 

a.     One who are self employed, and are into business.

b.    One are into service industry.

c.     One who are daily wagers or the survivors.

2.    The Rural population is fast migrating to the Urban side

The common factor in both the segments are that there is a big change but the change is making the families converge, and being a change by hear says and copying, the originality is extinguishing. And so is creation.

The education in both the segments are getting commercial and the basic education of self evaluation or evaluation of existing opportunities are making the available opportunities stagnant. The change is needed n the thoughts of both the educated and the arents of the educated who are converting into job finders from the position of the job providers.

Considering the population to be a boon, considering the right education to be a boon, the consumption cannot decline. But then where are we landing ? Just twenty five years back, the saving of the generation was used for the purpose of growth in the business, which is being stagnant now.

Second is the concept of borrowing.

Banks had a lead role to play. They had funds of the public and regulation was from RBI. The RBI started having the control of Political minds. The major borrowers today are facing the problems as their accounts are turning NPAs. It is a major correction.

This needed correction in the balance sheets too which was tainted. For this the regulations so framed to bring in transparency are working. But the seeds of these are so well embedded, that removing the roots of this waste will take time.

Public Administration and work

The Public Administration are still being controlled by  the people from Administrative Services. In the day, it has become a subject of research and the old system of selection, needs to be rooted out making it accountable. Responsibility can only be assumed by accountability. It cannot be one way as it is now.

Change in business system and impact.

This is one of the major hurdle. Everybody gets accustomed to his way of business and changing the lines, makes it very difficult. With the credit policy changed, and with the communication becoming more transparent, with the implementation of GST and with the blending of new techniques being formulated, the business culture has to be in lines. The process is finding difficult as precedence of the change is being created. It takes time.  There are fight of parallels here. At this juncture, an economic analysis is very much required based on the set up that one has. It has huge opportunities.

Change of process leading transparency.

The data is available to all. May be raw sometimes. But it is comparable. Each business segment is filing his data at different forums, which are now interconnected. The E communication has led to the evacuation of the fact that the proper time was not given. We are moving in a pace, where bottlenecks created are being plugged off. This will further lead to purposeful litigation and fast too. But now is the time for recalculating the process purposefully. This will make the complex legal system straight too and also accountable.

There have been checks over undisclosed money. But where there is money, there is concealment too.   And each person has a distinct way of investment and concealment. Earlier, this money was going into Real Estate, but now, the a slump is being felt in the segment. The properties so developed, are now getting old too. The old properties are not fetching up the rates which they used to fetch. Lending has reduced because of the uncertainty. Now the investments are again going back to Gold which is making the resources being pulled out of the market. A thought needs to be considered here. The country is making huge investments in Arms and Defense. It has to be made. Looking into the lines of the neighbors  but that sucks the liquidity. This trend is throughout the world. This has made the economy a bit sluggish too.

The economic front needs to be evaluated not by the economists abroad but the economy has to be evaluated by examining the situation of our country , its optimum use of resources, including the creative manpower. Which means that the people copying the others should be taken out.

This is the time of change. This is the time of thought. This is the first in the series and many more will follow which would include the changing dimensions in the practice of business which will change the entire legal culture and output in India. It is the transformation which looks visible with various blocks.

Question is are we ready for the same. It will take place. But for that we have to keep our mindset open.