Saturday, November 3, 2012

BLUE PRINT TO A PROSPEROUS INDIA

India as a nation is marching ahead on the road firstly to poverty alleviation and subsequently to prosperity and global economic superpower.No doubt the path is riddled with obstacles at each and every step but the final goal can be certainly achieved through relentless, coherent and sincere efforts by the rulers of the country  This requires balanced good politics, uncompromising good governance and  good economics powered through good governance.We do hear once in a while that good economics is good politics also but never heard from any quarter that good governance is the key to everything and is in fact the mother of good politics, good economics and subsequent march to prosperity. Total attack on the problems facing the country which are impediments in the path of journey to prosperity requires reforms like legislative, administrative, judicial, election pertaining etc. etc. and appear to be extremely difficult in the light of fractured mandates and compulsions of coalition politics even if there is will to do so. But still a lot can be achieved within the framework of existing rules and regulations and by attacking problem areas whole hearted from all angles rather than finding a patchwork solution which at best will provide some relief in the short run.

  • The first and foremost step towards making of a prosperous India lies in ensuring long term proper and sound fiscal health of the economy. The two important parameters namely the current account deficit and fiscal deficit must be kept within a tolerance band so that the inflation and rupee exchange rates do not completely nullify the effect of GDP growth on per capita income and instead of contributing to poverty alleviation contribute to poverty elevation as is happening during the last few years.
  • Education and human resource development is the next most important step towards bringing prosperity in India. Monetary and fiscal measures do help in improving the sentiment for investments but to realize the full potential of investments and the economic health of the country as also to fire up these sentiments, a lot of value addition is mandatory in the field of human resource development. A country where only 20 % of manpower pouring out of universities, business schools, engineering colleges, technical diploma schools ( polytechnic colleges ) and Industrial Training Institutes ( ITIs ) are considered to be employable along with the vast majority of manpower who can only boast of two hands without any particular skill can never become the preferred investment destination by the international community.
  • Corruption mitigation and good governance is potentially perhaps the biggest growth drivers of the Indian economy and  in fact can catapult the Indian growth story to a level much beyond the normal comprehension. Indian rulers have to exhibit a deep sense of devotion to the Indian cause and rise above the short term attractions of so called good politics.
  • Infrastructure development : Development of  roads, rail, power plants, power transmission, ports, airports etc. can lend a lot of momentum to Indian growth story and race to prosperity.
  • Reforms in all sectors be it electoral, financial, judicial, administrative must be taken up immediately. We have been hearing about them for a very very long time but somehow are the other the total polity of the country develops cold feet when it comes to implementing them, on one pretext or the other.