Sir — Sensex is on a merry spiral that may just bloat stock values rather than capital asset that creates jobs. In a robust economy, supplies keep up with rising demand, prices are stable and more earnings for companies occur.
But India Inc has touched its lowest earnings in 20 years. The Index of Industrial Production and private capital formation are languishing. The Institute for Human Development report and Forbes India believes that India will have poorer jobs and crores of youths may not get jobs and a huge number may go out of work. Demonetisation saw all cash returned to banks, but the resultant deluge of liquidity did not lift fresh lending, nor solve the problem of bank’s non performing assets.
Monetary policies keep assaulting savings. Even modest rate on savings bank account is now slashed. The spurt in economy post 1990s owed much to our nest-egg of high gross domestic saving. China’s savings, which is almost 67 per cent higher than us, is helping it sustain its far superior economic clout.