The Narendra Modi government yesterday made big ticket announcements which are sure to revive market sentiments and economic spirits.
Among the biggest announcements made was - reduction in corporate tax rates to 22 per cent without exemption, which will help government get greater revenue and firms make more money for future investments.
Another big announcement was - the 15 per cent tax rate for new manufacturing firms. This is a very good step, especially when firms are looking for an alternative to China.
These announcements boosted the stock market sentiments. The indices posted the biggest one-day gain in 10 years.
The market analysts have dubbed this move as a surgical strike on negative sentiments in the economy.
The Lutyens media had gone too far by saying that the Indian economy was teetering on the precipice of collapse by focusing on nebulous indicators such as the stock market.
Probably, they assume that economic illiteracy is pervasive among Indians, who are likely to believe pretty much any economic news as a pretext for predicting that the country is heading for a crash.
They are wrong about Indians, who see through the strong fundamentals of their economy at kitchen tables and across their own families and neighborhoods.
This brigade has such disdain for Prime Minister Naranedra Modi that they are actually cheering against the Indian economy.
Why are they indulging in economic fear-mongering?
The answer is simple. They want to please their industry masters who had suffered because of 'suit boot ki sarkar' narrative which was kicked up by them to please their political masters led by an empty-headed prince.
This narrative forced Modi government to take stringent action against the industry captains for business malpractices and looting country's resources and assets including coal and spectrum.
All said and done, what I want to underline here is this - crony capitalism has made its way in almost all media houses.
The government cannot take action against these media houses in a democratic setup, but it is for the people to stop these lie-peddlers by constantly exposing their fear-mongering strategy.
Tail piece: If Indian economy is on the verge of collapse, will any government in the world think of losing Rs 1.45 lakh crore by slashing corporate tax?
The answer is a big no. The Lutyens media had economic fear-mongering blown out of proportion.
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