Our GDP growth rate was splendid 9.3% just 2 years back in 2010-11. Last quarter, it was paltry 4.4%! What a downfall! Though there are many factors responsible for it, a big one is that we witnessed Policy Paralysis by our Govt. If we mind the dates, one big event happened in 2011 - Jan Lokpal Bill. Researchers can comment on its full impact, but I think one was that it contributed to Policy Paralysis of our govt which was pushed on the defensive. So far we have known that "elections" are the time when we do performance appraisal of our govt. But this idea of pulling people out of offices and colleges to protest on the streets and collect donations for a new party's coffers; I don't know what else it achieved but it did harm our economy. So we came down from 9.3% to 4.4% and our nation instead of being identified with the one supplying top brains of Silicon Valley, has gotten used to being called an ailing, chaotic Democracy, once again!
For example, 2G Scam actually happened around year 2008; despite that we continued great growth recovery till 2011 when we achieved 9.3% and thereafter we fell backwards... Coal allocation Scam is also old one – between 2004 – 2009. Still we keep growing... So my view is that scams don’t really harm economy as much as political climate does.
