A new beginning in Indian Economy
It goes without saying though we got liberation from the British-Raj way back in 1947; we are yet to achieve our economic emancipation.
Governments came one after another, made tall promises simply to miss most of those instead of implementing projects effectively which probably would have led India to become a global super economic power by now if not earlier. Particularly the last one decade the country has witnessed the largest political corruption, policy paralysis, insensitiveness & callousness towards the issues faced by us in a way pushing our county behind instead of achieving higher heights in the economic growth trajectory.
While we all take pride in our large geographical territory, huge youth population, secular fabric, the largest democracy in the world, multi ethnic & culture greatly practiced in different parts & most importantly our heritage saga & glorious past which have achievements in multiple fields including Science, Philosophy, Spirituality etc…yet have not made it to league of developed countries.
By God’s grace, there has been change in guard with lot of new energy & aspiration, every one of us has a reason to have a feel good factor& revive the most important element of a positive vive to overcome the evils imposed on us by the previous regime which left us in hapless state almost our backs onto wall. India was almost reduced to the position of just another Asian economy which cannot be deemed to be an influencing force anyway.
This paper is just a humble attempt to take a layman’s look at a few fundamental aspects having large ramification on our country’s state of affairs. These may sound very elementary & indeed they are but these are some of the keys to solutions.
- Brain drain: - Elementary Economics tells us about the “Factors of Production” & among all most important component is Labor. Needless to mention, Labor is defined today to cover workforce of all categories. Though our land is credited with the largest youth population ironically many of them prefer to go overseas either to study or to find more attractive employment. Remedy: - Set up world class Educational Institutions including Research Centers & avenues for gainful employment. Mind you, as a country we have been doing it but the same needs to be scaled up & expedited.Generate merits & create competitive environments & run away from mediocracy.
- Imbalance of Payment :-Prohibitively higher preference & usage of Imported products & services at times out of compulsion but many times by exercising choice has been a cause of concern for declining economy.Excessive volatility in the domestic economic & industrial policies reflect in the value of our currency as against the counter parties’ currencies. Remedy: - “Make in India” theme to be really rolled out in its true spirit so as to unlock the hidden values & talents of our land. In a Market economy which is where we live in requires us to be efficient as well as economical if we were to stay in the forefront of the market else there would be push back both internally & externally.
- Poor Infrastructure: - It may not be wrong to say the state of our infrastructure probably would have been appropriate to have four decades ago & definitely not now by any measuring standard(s). Be it Transport of all modes , Health care , Education system , Power , Public Convenience etc…you pick randomly anyone & without much pain the conclusion would be we have to improve a long way. Remedy: - Various Governments of the day should have the prime target of all round infrastructure growth at a war footing pace. This would not only help reduction in brain drains but also attract people from abroad to contribute to our economy.
- Regional Imbalance: - Even prior to the colonial days, Akhand Bharat had a diverse demographic scenario where there were wide cultural-social-political-economic differences among citizens residing in different parts of the country. Ironically even much after our political liberation from Monarchy followed by British Raj, we are yet to achieve economic emancipation& elimination of those regional gaps making us a very vulnerable country &easy target for enemies. Remedy: - Objectively evaluate the regional situations & roll out long term plans for lifting the regions those are lagging behind in multiple development indices. This can largely be fulfilled by setting up large manufacturing units; educational institutions & mass scale improved infrastructures to encourage growth. Government of the day is sounding serious on “East Policy” which is a testimony to the fact that its change for better.
- InadequateFinancial Systems: - Though there has been large scale banking network in last seven decades however yet as an economy, our banking penetration has not been very impressive as compared to other developing economies. A significant part of the population has no real time access to banking system and as a consequence large number of transactions involving huge amounts is outside the banking system. This also poses a big challenge in making available easy credit facilities hindering the growth. Remedy: -Existing banks to be encouraged to set up more branches in those areas where there are not many banking facilities and even other organizations who are keen to promote banks may be extended assistance in achieving their aim.
- Sub optimal Judicial Dispensation: -As a nation we are severely short of Jurists & legal infrastructure resulting in unprecedented accumulation of pending disputes & litigations. In the absence of a speedy & fair judicial system, the litigant parties are losing faith & withdrawing from initiatives which are at times extremely useful in nation building. Remedy: - Justice dispensation mechanism to be modernized , equipped with newer technology , availability of trained resources to enable the efficient justice delivery.
- Rationalizationof Laws: - Most of our laws are either pre independence or enacted around 50s and most of those are derived from English Laws; many of which over the time have either become irrelevant or even inadequate making the country’s enforcement system largely inefficient &sometimes the compliances under the existing set of laws produce more heat than light and are quite intimidating.Remedy: - Laws on various areas must be contemporaneous to the time & need to be rationalized to the extent possible to make their compliance hassle free which would certainly increase the level of compliance which would directly boost the growth. The government of the day should form multiple law commissions comprising of legal experts possessing a new & adoptive outlook to examine the existing laws & come out with new ones to replace or improve as the case may be.
- Enforcement of laws: - A country may have best of laws however it will only be “travesty of justice” if there is no commensurate enforcement mechanism to ensure the adherence to the laws. Remedy: - There is need of simplifying & modernizing the enforcement process & this can be achieved by training , modern technology , state of the art infrastructure , incentivizing efficient resources , reprimanding the negligent & erring resources & above all making it time bound as against keeping it open ended allowing a lot of political & other interferences in their functioning.
- Need for a Protected Society: - As a country, we keep looking up-to many developed countries & which those countries rightly deserve but a basic analysis would show the fact that those are protected societies in the sense the citizens & resources are relatively safer by virtue of the states’ sound fundamental of protecting the citizens & resources against evils. They are more alert & vigilant against terrorism & other form of disasters making them better places to live in. Remedy: - As a country we need to shoulder additional responsibility to make our nation safer, better & smarter by following the international practices customized to our ground realities.
- Absence of Social Security: - Though India is credited with record of being the country with largest youth below 35 years old, yet we have a lot of citizens who do not lead a decent life because either they are old or they are not capable of earning enough. This brings real shame to our nation that we claim ourselves the largest democracy but we still don’t treat or take careof our people well. Remedy: - Funding heavily those schemes which aim towards catering to the people’s social security needs. This has to be taken up priority on humanitarian ground & as a country our image will get a high boost.
- Elimination of Discrimination: -Unity in Diversity is one of our basic characteristics yet sometimes this is used for petty political mileage at cost of all round growth & at times national security. Remedy: - Any kind of discrimination must go &make it a common society where there is absolute equality before law in both letter & sprit.
Since modern economic ecosystem is deeply integrated with other variables i.e. Social, Political,Geographical, Historical etc…therefore its quintessential the menaces in relation to each of these areas need to be addressed in a wholistic manner so as to achieve our economic success & not just derive happiness by looking at rally in the stock market indices...Let’s take a vow to be an active part of our Nation Building exercise.
Posted 2 years, 3 months ago by Sabyasachee Dash
A good article, here are my views. I wrote a lot on Indian economy, some of these are even published on this forum.
We are a big, confused and mislead economy or I must a country. Laws are there, but no one knows how to use them.
Basically role of government should be to take care of people and not controlling people, remember we are a democracy.
Compare things to times of Indira Gandhi and licenseraj. In last 2.5 decades India as a country has grown really well. Who gets the creadit?
Ofcourse government failed a big time, we do not see any improvements in government runned companies or departments. Still useless people are seating in the departments.
Private wealth and private companies have grown really big. Tax collection has multiplied many times. These are good indications that to control corruption and crime government has to limit its roles in how public functions.
Coal Scam, 2G Scam and latest Mining Scam have one similarity. These scams are related to natural resources whose allocation is governed by Government.
I mean to say that corruption is not only prevailing at lower wings of government departments but also at top level of government heads.
It is the time that government forms a policy to either fully control the resources or free itself from any resource controlling duty ofcourse guidelines can be issued.
We are neither a Capitalist economy nor Socilistic society. We have chosed policy which are unclear and do not lead a common path. We have to decide as a country which path we need to follow.
Posted 2 years, 3 months ago by Prakash mehta
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