No more a routine correction

The story of Indian stock markets falling is becoming predictable. People are losing money, their confidence and lookout for the future is shaky. While it’s common sense to avoid reading too much into markets as an indicator of the economy, such falls are rare and can’t be simply explained as a correction. 5 straight months of fall seen after 29 years with the Indian markets being the worst performing in the world and neighboring markets like Hang Seng and Singapore showing growth upto 15%. The fall is across spectrum and even fmcg stocks are down 20%. Seen with the global uncertainty, eccentric trump administration, falling rupee and the recent Blume Venture report saying that 90% of Indians have no spending power whatsoever, we are in a deep crisis. While governments tax policies like capital gains tax on stocks are said to discourage FIIs investments have been falling for a decade now. The government needs to rise up and address the immiserisation of the people and stimulate demand. It needs to improve upon its communication with the people and economy and be more transparent and consultative to restore confidence. The institutional framework needs to be strengthened and lastly the polity needs to regain its democratic and pro poor discourse.