By Manuwant Choudhary
The Indian economy is in a tailspin...a prediction come true by BJP MP Dr. Subramanian Swamy.
After the recent cash ban Dr. Swamy has been put on mute but I have saved a letter he wrote to Prime Minister Narendra Modi.
It says, " Based on my reading of various indicators of Indian economy, I feel compelled to inform you that the economy is in its early phase of a tailspin. If curative measures are not taken then a major crash is inevitable between coming November and February 2016.."
The letter is dated September 15,2015, and although the crash never happened between November and February 2016, its clear Swamy talked about the `tailspin' being in its early phases.
He suggested two solutions..first was to abolish Income Tax to enthuse the middle classes in India to save money. This was an attempt to shore up the money into the banks voluntarily and not what Modi has done now by demonitising.
And second he wrote to PM about lowering interest rates since international lenders were taking advantage and engaged in interest arbitage...and since Raghuram Rajan was opposing lowering of interest rates he should be asked to go.
Interestingly Dr. Swamy also wrote how during Modi's term large sums of black money had already entered into the Indian economy.
"Since you took oath of office, of the 24 billion dollars, almost 18 billion dollars have come from Mauritius and Singapore, which means most of the foriegn investments is really a recycling of black money and not genuine new foreign investments."
"Therefore I urge you to take personal interest and create a Crisis Management Team, wihin the PMO for taking urgent steps to see that the Indian economy does not spiral down to crash."
Modi accepted two parts of Swamy's advice - to remove Raghuram Rajan and form a Crisis Management Team.
But what he did by demonitising currency did not `spiral down the economy to a crash' but `brought it to a grinding halt'..just like when you apply a sudden brake on an Indian highway...as a holy cow jumps out of nowhere...
But I wonder what Modi is telling Swamy in the photo above..?