Sunday, September 7, 2008

The Great Indian Growth Story

India has achieved amazing economic growth in the recent years.

Better jobs and increased salaries have improved the standard of living of people and changed the way they view things.

And the transformation is there for everybody to see..

Computers are penetrating the middle class Indian population at an astonishing rate and PC sales are at an all-time high. Air-conditioners are now considered a necessity rather than luxury.

There are large malls everywhere ...consisting of restaurants offering international cuisines, multistoried bookstores, showrooms for expensive furniture, whole shops for electronic gadgets, jewels, high-end clothing apparel, sports goods and what not.

The number of people owning cars and houses has also gone up dramatically in the last 3 years.

Nowadays, if people feel that spending money on something will make their lives more enjoyable, they do it without having second thoughts. They have extra money to spend at their discretion now!

And how has this new economic environment benefited Indian companies?

Obviously yes, that over the last 10 years, the sales and profits of BSE-30 companies has grown by about 8 times.

It is a remarkable achievement indeed.

But There Is Also A Downside To This Growth...

While the recent economic growth has been great for India on one hand, it has also caused unprecedented problems on the other.

Sure, economic development has generated more jobs and transformed the lives of millions.

But to meet the demands of the ever-expanding population and sustain this growth in the long run, India needs some basic amenities - starting with simple requirements like POWER.

And this is where the problem lies.

Look...

Any person would be satisfied if he has enough power to light a bulb for reading, cooking some hot food, keeping his home cool in summer and doing other small things that electricity can do.

But even this is not happening in India right now.

What is happening actually is...

  • Frequent power outages are bringing people's lives to a complete standstill.
  • People can hardly plan work, meetings or any other activity anymore.
  • Dinner parties are completely ruled out, so even their social life has also been affected severely.
  • Students can't study after they come from school due to lack of power.
  • Shopkeepers are forced to close shop early because of the late evening power cuts.

And these are just a few.

Imagine the plight of industries and factories which are totally dependent on electricity for their functioning.

To be frank, the problem is so bad I could go on with this forever.

You and I may live in a city where the problem is not so severe. That doesn't mean the problem does not exist.

This problem does exist and it's as real as it can get.

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