HOW TO MAKE ELEPHANT DANCE?

What brings global dominance, resources, political stability or strong alliance with nations. Undoubtedly, many more options pop up in our mind. But most importantly, the deciding factor is going to be universally accepted global currency backed by strong institutional body. These are two basic factors that goes hand in hand. Strong currency supports strong intuitions and likewise. Here, the most crucial institution is banking. In current scenario when almost all the economies are over coming from much affected covid pandemic, the challenge for every nation is hard to be managed. However, as the old adage goes 'every cloud has a silver lining' India has a great opportunity of pegging the rift amid developed and developing. Unlike a big leap similar to the country like China is much required. One should not forget the learning from history as how china marked it global presence despite getting the independence almost the same time when India got. The ways and means would have been different altogether and a huge cost that china had to pay. Yet it succumbs to make it not only through its products, investments but also through its economic reforms. Some of its bold and hara-kiri decisions also surprised the world time to time. No doubt, when most of the economies like U.S. and Britain fiddle with their economic status or seldom have any information of most of the world, still consider them stable and economically strong enough. In fact, a hear say prolong that they are 'too big to fail'. However, the biggest truth about money is, it does not always stay in one's hand forever. Forget about the secret alliance and dirty global political practices, the economy of developed economies started a down trend.

Despite having strong medical and economic facilities, developed countries failed to address the pandemic better and effective manner. These countries did not lose their huge resources but also failed to face the challenges arose from the repercussion. The unstable political clashes added fuel to it. Perhaps Malthus was correctly mentioned it in his theory, however a few additional points must be incorporated to adapt it in accordance to current scenario. In any case, the pandemic has brought a chance to these developing economies to settle the scores with developed one's. Country like India, it becomes imperial to abreast certain strong yet robust economic reforms to make it 5 trillion-dollar economy. The very first and basic heuristic approach starts with improving the status of financial institutions. Past few years have evident the pathetic conditions of banking at large. Raising NPA caused merger of various banks. Above all under performance of government machinery is also an important factor to be considered. Another big thing is making the money market more economy friendly and take some radical changes to make it viable.

However, the Indian government seems in perplexed situation. Perhaps two different ideology clashes can be the main concern. Achieving the target of making Indian economy a 5 trillion dollar an upheaval task. On one hand, hearsay goes that government is planning to introduce a bill to ban on crypto. But also, willing to ensure enough that how and how much it can be good for economy. There can be two possible solution for global domination, the very first starts with adaptation of crypto. Whereas another is at least next to impossible, that is inception of a national crypto currency. Looking at both the perspective, one can easily apprehend that none of the option is easy to adopt. Yet the first option is rather practical than other. Technical laggard and apprehension of long-term perspective is the biggest road block on its way. Remember, how the nationalization of bank in 1948 paved the way of inclusive growth. Similarly, the second phase of it began with the initiative to bring most of the individuals under JAN DHAN YOJNA. The aim was clear to make every individual associated with banking system. The pace gradually continued with various new schemes and initiatives like DBT, online payment etc.

AAPDA KO AVASAR MEIN BADLO (turn contingency into opportunity) a slogan given by PM during pandemic has various perspective to understand. Transformation of job seeker to job provider, being entrepreneur and in cashing the opportunity instead crying over spilled milk. The results are evident enough to validate the logic. The economy is recovering at a faster pace. Yet to promote digitalization and achieving the target of not only being a 5trillion dollar economy but for global domination, the nation must have to embrace the crypto. The temporary trial has started when the banks can use the crypto for inter banking transaction. Besides, digital currency can faster the payment system. Marginalizing the hard currency is definitely a good idea, which will not only save the time but also the cost of publishing and minting. The only concern in this context can be the effective regulation of crypto. Moreover, the government has to take a step to form a regulatory committee to keep a vigil. Besides, the committee should be given a free hand and should work with the coordination of apex bank of India. Giving extra burden to RBI will not serve the purpose. Even if the government averts the adaptation, sooner or later most of the economies are going to accept it anyway. But India will certainly loose the chance to become a global leader. In addition to this, the concern of mis-use of crypto and fanning it to the corruption is more like superficial things. Panama leaks and various other economic frauds provide the sufficient reasons to doubt on the effectiveness of banking system. Government can also go for a trial run for the same. But banning crypto currency is definitely going to be a blunder for long. The idea cannot be discarded on the ground of poor literary rate and inadequate technical knowledge of Indian people. As a recent incident of cops being allegedly taking bribe in crypto gave subsequent reason to look into the matter and future perspective in a different light altogether. Payment gateway providers can also be given the responsibility to share the details of transactions. Other than that, a modest way of parallel currency in initial phase can offer a safe a secure way to the economy.

Writer-Devsheel Gaurav

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