The Third Opinion

                    (Image Source - https://chennai.citizenmatters.in )   Many political parties promise to offer subsidized or free availability of food, electricity, transportation, laptops, electrical equipment as part of their election manifesto. Does this culture promote growth or hampers it, is the hot topic of debate these days. The first important thing to understand is the motive of providing freebies. Many of the European countries like Germany provide free healthcare and free education to their education. Germany spends almost 11% of its GDP on healthcare. To compensate for these expenses, they charge 14% tax on income and maximum up to 54,000 euros. The motive is quite clear. They don't want a family to go bankrupt just due to paying for sudden high medical costs incurred. So, the country's healthcare expense is distributed among all the taxpayers and everyone is benefited. So, the providing free...

  In the recent circumstances as of July 2022, the rupee continues to tumble and have settled around 80 Rs against US dollar. This descent is expected to go further and will have direct impact on citizens of India.As rupee continues to fall, the CPI inflation will go beyond 6.8 % reported by rating agency Crisil, whereas ideal range for inflation is 2-6% as per RBI. As India being net importer, this would lead to increase in fiscal deficit up to 3% of  total GDP. Often when the country's currency dips with respect to US dollar, the export products and services become cheaper. So, it is believed to have rise in exports' figure. But in current scenario, the Ukraine-Russia war and post effects of pandemic has weaken the overall demand. The sectors such pharmacy, textile and IT industry which contributes most of the Indian exports may not benefit due to disrupted supply chain and low demand. Moreover, Indian manufactured products which are dependent heavily on imported raw materia...