Sensex and Aam Aadmi!

Last year, Sensex had crossed the 20,000 mark. Mukesh Ambani became the richest man in the world. This made us believe that India is riding high on industrial development and growth, but the reality was far from rosy.

However, question arises as to whether the Sensex reflects the health of the Indian economy? Will it have an impact on the well being of the Indian masses? Will it help the 64 per cent of the country’s population, which goes to sleep empty stomach? I think there's no relation between them.

A lot of money has come into India and has increased the share prices. Many people have made a lot of money and hence will start buying things and thus make everything more expensive. This would make the life of poor and hungry people more difficult. This, unfortunately, is the result of globalisation and free market economy. i read one article where it says:

"The boom in the share market was never because of increased production. A few industrial houses, to meet their own vested interests, have fabricated it. Less then two per cent of the population in the country may be involved in stock market activities. But every day our media projects the shares prices as if it reflects the lifeline of the Indian masses.The so called 64 per cent who go to sleep empty stomach actually fall outside the ambit of the tremendous progress achieved in industrial sector because they are either dependent on agriculture, where there has been hardly any progress, or they are people in the unorganised sectors, like rickshaw pullers and small vendors.Though India’s GDP is projected to be marching towards a 8 per cent growth rate, the rural economy, on which over 70 per cent of the population is still dependent, is in a bad shape. The agricultural productivity has become negative. There was no employment generation in the rural sector. Unless agriculture is made profitable, we cannot expect the economic well being of the vast majority of the India’s population.The so called boom in the service sectors is limited to only a few. According to estimates, the number of people getting an annual salary of more than Rs one lakh may not cross seven lakhs in the country. Despite numerous packages from the Prime Minister, the suicides in farm sector continue and government policies fail to provide confidence to the depressed sections of the rural masses. So, the first and foremost task of the government is to treat agriculture as an industry and corporatise it and thus increase the purchasing power of the people dependent on agriculture. With the gradual conversion of the agricultural land into residential, commercial and industrial complexes, we can provide food security to a limited number of people only, and certainly not to the huge population. The net area under agriculture is coming down and for the first time in the last two decades, we are facing a shortage of food grains.Given the realities of the Indian economy, there should be a percentage cap on share prices, so that the new money is invested in new industries and companies. What is going on right now is a super lotto at the cost of the sufferings of the poor. "

What people fail to understand is that sensex is not an indiactor of the state of the economy. Since sensex is mainly driven by the FII inflows. I remember one sketch by R.K. Laxman Where Indian prime minister is talking to his secretary infront of one poor farmer, and telling his secretary " I told this farmer that we are growing at 9%, we have telecommunications revolution, our banks are safe but still he doesn't look happy"....What the common man has to do with sensex...which consists of more than 70% of india ...by the time i am writing this sensex is at 8,264 levels i.e. after a sharp recovery!