Sunday, January 8, 2012

Indian Growth Story-A True Perspective

The Indian polity, planning commission, economists and intelligentsia keep on harping on 7-9% GDP growth of the country during the last few years. This has come about as a result of global opportunity provided as a result of very large low wage human resource with an excellent demographic mix, good education and intelligence quotient, a huge captive market for even the basic human existence elements of food, medical health, hygiene, drinking water, means of transport, electricity etc. etc.. Coupled with this is  the fact that the polity was left with no option but to provide these amenities after 64 years of deep slumber, inaction and fooling around of Indian masses with high sounding vote catching words and phrases.They rightly saw the danger to their political existence and survivability. The developed nations seized this opportunity with open hands and had no inhibitions in selling their low level products and technologies mainly in the consumption theme along with near obsolescence technologies in the fields of power, logistics, manufacturing and allied industry. With this they have initiated the Indian masses to the taste of fruits of prosperity which will act as a nucleate to keep pressure on Indian polity for more and more of it.In the bargain these developed nations have ensured steady returns for themselves for maintaining their own high standards for long times to come.
There has not been any value addition to this phenomenon of GDP growth by any of the governments of the country. The three main engines of Indian Growth Story, namely human resource development, infrastructure  development, corruption  and black money mitigation are lying dormant and precious little has been done to make them  vibrant. Country has not made any significant effort to improve upon the unskilled, semi skilled and skilled worker pool or  the technical, administrative and managerial pool of the country. During some moments of sanity  in some of the government elements, some wonderful programs and initiatives like thrust on infrastructure, UID project etc. have been initiated but have taken a back seat because of cheap and  economically destructive political agenda of providing subsidies, doles and freebies and motivated corrupt governance.
The developed economies are really happy about such policies and priorities of Indian government for these will ensure perpetual dependence of a country of 1 billion plus for next generations of consumer goods, capital goods and manufacturing technologies. The basic questions India's polity needs to answer are.

  • How long we will keep contributing to maintaining the technology and financial leadership of the developed world? 
  • How long we will be denied the chance of becoming world leaders which is our right because we have abundance of natural resources and other wherewithal, namely a huge human resource which is bound to have one of the largest banks of geniuses on this globe and a fairly large budget along with the massive scale of our needs and requirements?
The wait may not be very long. All that is needed is sincerity, honesty of purpose and long term vision in formulating economic policies and providing reasonably good governance.The governance must change to nation centric from the present self and party centric if a growth rate of 9-10% is to be a reality for next 20 years as is being touted by various government spokespersons.