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The Final Top 20
Priority List of the GOI: My Perceptions–
What India needs to do—
1. In the Economic front--Taming inflation esp food inflation which will do benefits to many esp the poor; pull the economy out of the worst phase of growth in a decade but take it back to 8-9% levels to generate jobs; for this manufacturing sector needs a re-jig; control subsidies and fiscal deficit; boost exports to bridge the CAD (current account deficit); transaction costs need to be cut and other steps are requires to make exports competitive; Create conditions for lowering interest rates and boosting investments.
2. In the Banking front–The banking sector under RBI forms one of the vital mark for holding the economy of India–few reforms in the RBI can bridge the gap. By this as predicted by economist India can accentuate its economy by up to two percentage points. This can be done by at least removing the Debt management functions of RBI and initializing more independence in its governance. A curb on the inflation rate and a smaller borrowing programme will create conditions for RBI to reduce rates. At the same time, steps are required to boost FDI.
3. Reforming Labor Laws and make them more ideal to contribute to India’s growth–This should be done to increase employment and to shift the base at least with a good percentage from agricultural sector to the non-agricultural sector. India does not use effectively its bast labor force, and thus is stricken with many forms of unemployment.
India should vitally utilize its population which is in the middle of aDemographic boom. (300 million young people are set to enter the labour force by 2025. With an average age of 29, as compared to compared to 37 for China and 48 for Japan.) By 2020, when the global economy is expected to run short of 56 million young people, India, with a youth surplus of 47 million, could fill the gap. In this context, India’s labour reforms are often cited as the way to unlock double-digit growth in India.
–Also greater participation of women should be heralded with revitalizing the Maternity Benefit Act (1961) which is largely underutilized. this is the main reason for women’s low participation in industrial labor.
—Periodic revision of minimum wages, securing benefits of maternity acts, better perks of women in industrial labor, ease of doing business and worker benefits needs to be on the priority list.
4. Effective implementation of GST—Which is bound to propel Indi’s growth to double benefits. By bringing the entire nation under an uniform tax base; bringing down commodity prices while decreasing tax avoidance rate;
5. Utilizing the vast potential of Solar energy in India–provided that coal cannot totally mitigate the energy crisis of the nation, again hydro power are not environment-friendly, (as they come with a lot of habitat destruction issues), we can effectively solve the energy crisis with the help of our huge Solar energy. Rajasthan and gujarat are the most potential base for the development of Solar Power.
Some better Solar Parks are constructed in India like the Charanka Gujarat Solar plant with some of the best infrastructure.
The Union Ministry of New and Renewable Energy (MNRE) has announced a scheme to develop at least 25 solar parks, each with a capacity of 500 MW and above targeting over 20 GW solar power, across the country in next five years at an outlay of Rs 4050 crore. It was approved by the union cabinet in Dec 2014.
The only hindrance so the use of Solar power on such a vast scale is it is not that cost effective.
6. Utilizing Wind Energy –India has the fifth largest installe dwind power capacity in the world. As of 30 June 2015 the installed capacity of wind power in India was 23,763 MW, mainly spread across South, West and North regions.Tamil Nadu (Muppandal wind farm in Kanyakumari) till now contributes to 35% of the total wind pwoer of India, followed by Gujarat and Maharashtra. Main issue with this sector is again the cost, and it should be the primary focus of the government to make this eco-friendly resource more cost effective.
7. Waste to Energy–Solid waste management: The quantity of SWM generated in India is increasing rapidly due to increasing population and change in lifestyles.More than 91% of the SWM collected formally is landfilled on open lands and dumps and 2% openly burnt. Problem starts from collection itself where there is no differentiation between biodegradable and non-biodegradable (ex-plastics) waste at source which results in mixture of both, which also results in the degradation of the environment, and adversely affecting the health of the local population.
To be done–proper plan for its transportation, storage, disposal and its treatment, and implementing penal provisions for those not following waste management at their respective levels.
8. More switch to cleaner fuel and environmental sustainability-— Its high time India should switch from coal energy which causes a lot of environmental hazards to more cleaner sources. Nuclear energy is the best source in this regard.
India has signed nuclear agreements with a number of foreign countries. With France been the first country to sign a Nuclear deal with India (2008), India has till now signed nuclear agreements with the following countries–(total eight): Russia, Mongolia, Namibia, Argentina, UK, Canada, Kazakhstan and South Korea. The last was South Korea with which India signed the agreement on the 25th July, 2011. This will allow South Korea with a legal foundation to participate in India’s nuclear expansion programme, and to bid for constructing nuclear power plants in India.
9. Women empowerment–Effective increase of the sex ratio of women, by implementing the women education and more participation of women into the main workforce—Related schemes like Beti Padhao Beti Bachao Yojana; following the Kerala and Mizoram model to achieve universality in female education; working on the betterment in school facilities with sanitary facilities and removing the gender bias can some of the steps (India ranks 132 in the Global gender Inequality Index).
Maternal mortality rate–Janani Suraksha Yojana, reducing the MMR to 1 per live 1000 births. and Reducing Infant Mortality Rate (IMR) to 28 per 1000 live births.
10. Education–The best we have to strive towards attainment of the target of as much as literacy possible, which has to undertake a take-off from the present 74%. This can be done by improving primary school access, infrastructure, pupil-teacher ratios, teacher salaries, and student enrollment, student grants and the Mid-day meal schemes.
- Allocation for education must go up at least 6% of GDP
- More skill-based training with effective use of the private players.
- . IITs should be asked to pay attention to research. It has become a factory producing engineers. IIMs should be given deemed university status so that it attracts genuine research in the fast changing economy.
- Mid-Day Meal needs a serious revamp.
- The huge gap between central and state universities needs to be bridged. In this regard, UPA’s Rashtriya Uchchatar Shiksha Abhiyan should be bolstered.
11. Infrastructure development—Effective implementation of the 100 smart cities schemes,linking important cities with the aviation sector by airports. if the country’s infrastructure doesn’t improve in the next five years, many of India’s young workforce would be spending an hour-and-half commuting to work, and will have access to electricity and hot water only for one hour a day.
(a) Infra, the government should remove the minimum alternative tax or MAT to incentivize more and more companies to take up with infrastructure projects.
(b) government must allow commercial banks to lend for 25 years with 5 year resets (known as the 25/5 model) to the private sector for infrastructure projects
(c) infrastructure related special purpose vehicles (SPVs) should not be clubbed with a corporates’ total loan exposure in banks.
(d) Better justifications and implementation about the Land aquisition Act, which will provide better resources for infrastructure building
12. Preventing red tapism and corruption —Better implementation of laws, Policies to be implemented in a time-bound manner; Transparent decision making and implementing them. This can improve India’s ranking on the World Bank’s Ease of Doing Business Index to 50 from an abysmal 142.
13., Black money–Issue of black money is quite complex in India due to presence of heavy informal sector ,booming real estate which is heaven for black money and lack of cooperation between international agencies and countries over sharing of information
Actions to stop black money and money laundering like–Benami transaction prohibition act , Double tax avodiance acts with foreign countries; ratification of United Nations Convention against Transnational Organized Crime; whistle blowers act are some of the steps taken in this regard.
14. Improving agricultural sector according to needs with more focus on schemes like: Soil health card scheme, Krishi Sinchayi Yojana, promote organic farming, improving the soil health, more subsidies aids and grant schemes for farmers. organic farming includes the following–crop rotation, green manure, compost, biological pest control, and mechanical cultivation to maintain soil productivity and control pests.
15. Industrial rejuvenation and FDI inflow–Foreign Direct Investment (FDI) is a direct measure of the confidence that foreign investors have in India’s economy. For their part, the government has already raised the foreign investment limit in the defense manufacturing industry, eased restrictions in the construction industry, and raised the FDI cap on insurance in an effort to make it more effective. With the Make in India scheme, India has already marked its presence as one of the fastest growing economies of the world. It has been ranked among the top 3 attractive destinations for inbound investments.
The recent policy measures in FDI are as follows–
- 100% FDI allowed in medical devices
- FDI cap increased in insurance & sub-activities from 26% to 49%
- 100% FDI allowed in the telecom sector.
- 100% FDI in single-brand retail.
- FDI in commodity exchanges, stock exchanges & depositories, power exchanges, petroleum refining by PSUs, courier services under the government route has now been brought under the automatic route.
- Removal of restriction in tea plantation sector.
- FDI limit raised to 74% in credit information & 100% in asset reconstruction companies.
- FDI limit of 26% in defence sector raised to 49% under Government approval route. Foreign Portfolio Investment up to 24% permitted under automatic route. FDI beyond 49% is also allowed on a case to case basis with the approval of Cabinet Committee on Security.
- Construction, operation and maintenance of specified activities of Railway sector opened to 100% foreign direct investment under automatic route.
- Note–Citizen or entity from Bangladesh & Pakistan can invest only under the government route also investor from Pakistan cannot invest in defence, space, atomic energy and sectors prohibited for foreign investment.
16. International-Few are some important priorities India needs to deal with
- Infuse more life and vivacity into the India-USA relationship;
- Reviving the Sino–china relationship as far as possible (The way to do it is to push Chinese investment in India and develop a genuine economic partnership with it.)
- India’ s Look East policy has petered out into a “Glance East” Policy. India’s economic and strategic moorings are in Asia, therefore MEA will have to look at advancing Indian interests in Asia, including countries like Vietnam, Indonesia, Singapore
- Good start by Modi when he invited the heads of the Nation states in hi swear-in ceremony.
- Infusing more life and importance to the SAARC relationship– genuine appreciation of the requirements of our neighbours as well as their political sensitivities. As a regional bloc, South Asia is the least integrated in the world. Injecting faith and trust by opening up trade and business would change the situation.
- Build trade missions in key embassies to facilitate Indian economic interests.
17. Judiciary and police-–Modernize the Police force, make it independent of political interference including strict penal laws, Fast track courts, adequate law enforcement and proper training. India has too few courts and judges. Added with archaic laws and processes, we have a dysfunctional judicial system. When the judiciary is dysfunctional, society cannot progress. Enable legal reforms to simplify the processes. Hence both Police and the judiciary needs a revamp.
18. Military development--Without a strong military presence, terrorists and other enemies could take out the Indian economy anytime they wanted to. That’s certainly not the sign of an economic superpower! Millitary budgets needs to be improved and increased as a whole, with better penetration facilities in this sector. India, embarrassingly, still imports 65% of its military hardware and software. Some of the measures that can be takne in this sector–
- Boost indigenous defence R&D and production. Revamp DRDO and its 50 labs, five defence PSUs, four shipyards and 39 ordnance factories
- Encourage the private sector to enter arms manufacturing in a major way.
- Streamline cumbersome arms procurement procedures to fast-track acquisitions and reduce corruption
- Reform the country’s higher defence management
- Ensure faster build-up of both the new mountain strike corps as well as military infrastructure like the long-identified 73 strategic roads and 14 railway lines, helipads and advance landing grounds, along the Line of Actual Control to counter China.
- Boost force-levels and infrastructure at Andaman and Nicobar Command, apart from creating three new tri-Service commands for space, cyber and special operations.
- Hike budgeted defence expenditure to at least 2.5% of GDP, instead of letting it wallow around just 1.7 to 1.9%, for adequate military modernization and requisite deterrence against both China and Pakistan
- faster induction of nuclear submarine INS Arihant and its follow-on sister ships with long-range missiles.
18. Usage of Biofuels–This can als be an effective way to solve the energy crisis. Bio fuels are liquid fuels obtained directly from plants and animal matters(any organic matter) in a short period of time (weeks, days, months) due to carbon fixation of geological past.
Biofuels contrasts with fossil fuels, which take millions of years to form and with other types of fuel which are not based on hydrocarbons (nuclear fission, for instance).
(a) First generation–While we had to depend directly on food crops–like wheat and sugar for ethanol and oil seeds for bio diesel by conventional method of fermentation.: Green House Emission was more
(b) Second generation came with Here non- food crops/feed crops used instead of food crops in first generation ….like grass, wood, seed crops (like Jatropa) ;organic waste, municipal waste etc: Positive in Net Energy gain measure.
(c) Third generation–used specially engineered algae and its bio mass used to convert into bio fuels;; here greenhouse emission will be low compared to others; This can also effectively terminate the food security threats that we had with the usage in First generation. Here the algae can be cultured low case, vast potential of production due to the large coastline of India, entirely renewable feedstock; potential to produce more energy per acre than conventional crops.
19. Make India;s culture reach out to the world/Tourism revamp--India’s tourism industry is experiencing a strong period of growth, driven by the burgeoning Indian middle class, growth in high spending foreign tourists, and coordinated government campaigns to promote ‘Incredible India’.
The tourism industry of India is based on certain core nationalistic ideals and standards which are: Swaagat or welcome, Sahyog or cooperation,Soochanaa or information, Sanrachanaa or infrastructure, Suvidha or facilitation, Safaai or cleanliness and Surakshaa or security.
The latest involvments of the Buddhist circuits; the Adarsh Smarak tags, greater independence and involvement of the ASI, and most importantly the VISA refomrs are some of the good measures that can drive India to have a 7.5% revamp in the Tourism sector. In 2014, the industry contributed Rs7.64 trillion and 36.7 million jobs to the Indian economy. –and hence is one of the top in the priority list for India.
(a) In November, India expanded the visa-on-arrival scheme to 43 nationalities from 12 countries earlier. It is in process of rolling out a similar facility for 150 countries
(b) India also needs to recast and relaunch its the Incredible India campaign to “maximize India’s new visa regime”
(c) Boom in the foreign tourists visits due to the blooming IT industry outsourcing industry a growing number of business trips are made by foreigners to India, who will often add a weekend break or longer holiday to their trip
(d) A new growth sector is medical tourism. It is currently growing at around 30% per annum. Medical tourist arrivals are expected to reach one million soon.
The economic statistics are shared
20. Health facilities--The Union Ministry of Health and Family Welfare has suggested making health a fundamental right, similar to education. This key proposal in the draft National Health Policy, 2015, suggests making denial of health an offence. This should be taken better care of.