When India got it's independence in 1947, lot of things were in dis-array. For instance the low literacy rate (less than 25%), low life expectancy (22 years ! yes that's right) and many other disappointing socio-economic factors. While the population growth during the first 50 years of 20th century has been between 0.5-1%, it has been around 3% in the subsequent 50 years, leaving independent India to manage newer challenges than what British have left us with. 400 years of slavery under disguised merchants (The East India Co.) has made us extremely skeptical about business and capitalism. And of course the soft corner for Russia and the socialist overtunes of independent India's new leadership led to choosing a closed & controlled (by government) economy. It is relevant to mention that the gap between haves and have nots was vast during 1947. Market led economy would NOT have been appropriate for this context, as social resources were not distributed equitably. However, we continued with this model of economy for 45 years before liberalization. The conditioning was so strong that even talking business or investment made us feel guilty and shy. The Hindu rate of growth at 3.5%(GDP growth) was not surprising.
In the backdrop of this context, the progress India made cannot be dismissed as sub-optimal, for sure. Although, we could have done better without the Indian crab syndrome (pulling each other down) and politically motivated unproductive energies in issues like reservations. The vision of our forefathers was legendary, when we are reminded of creations such as Bhakra Nangal dam(Punjab continues to be the most the productive agricultural state), the IITs, IIMs and IISc. Thus, the wealth created in silicon valley owes some of it's allegiance to founding father's of Indian Economy ;) Many other investments in public infrastructure turned out to be world class, although we often discuss the failed stories.
1981 is a year of significant departures for Indian economy. The blueprints for change in policy has taken its zenith. In the subsequent 25 years, India has achieved more than what it had achieved in the previous 40 years, on any parameter such as GDP growth, literacy rate, infant mortality, female empowerment etc.
The imperatives for now, as pronounced by the Economic survey 2006-07, are sustained & inclusive growth and controlled inflation. I have mentioned (in one of my posts on this blog) about contract farming and PPP in infra structure. In the infra structure area, in addition to ports, airports, mass transport systems there is an urgent need to address issues in Energy sector. The Energy Act, 2003 has been a dis-appointment in failing to make an impact in 4 years of it's existence. I have a feeling that the center has been too lax in letting the states get away with delays in framing the rules. Why does even a progressive state like Gujarat move slow in coming up with rules to pave way for wind mill projects in a state having the longest coast line in the country? While Nuclear energy pact with US hangs in suspense, the biggest issues remain- of leakages and of line losses that need to be addressed on priority. Perhaps, dis-investing Transco companies and giving out management control to reputed private sector companies is a good way forward. These bold decisions need political will and unfortunately, the existence of a coalition government and its politics does help our cause.
As, we struggle to put a cap on inflation even as the rupee gains and IT industry sulks, action in novel approaches like large scale contract farming, PPP in infrastructure, Privatizing transcos is the need of the hour. There seems to be a trend or should we still call it a coincidence that the Finance minister, Prime minister and President are all professionals / respected personalities first and politicians next. Directionally we cannot go wrong as long as this continues even as the pace continues to be sluggish.
In the backdrop of this context, the progress India made cannot be dismissed as sub-optimal, for sure. Although, we could have done better without the Indian crab syndrome (pulling each other down) and politically motivated unproductive energies in issues like reservations. The vision of our forefathers was legendary, when we are reminded of creations such as Bhakra Nangal dam(Punjab continues to be the most the productive agricultural state), the IITs, IIMs and IISc. Thus, the wealth created in silicon valley owes some of it's allegiance to founding father's of Indian Economy ;) Many other investments in public infrastructure turned out to be world class, although we often discuss the failed stories.
1981 is a year of significant departures for Indian economy. The blueprints for change in policy has taken its zenith. In the subsequent 25 years, India has achieved more than what it had achieved in the previous 40 years, on any parameter such as GDP growth, literacy rate, infant mortality, female empowerment etc.
The imperatives for now, as pronounced by the Economic survey 2006-07, are sustained & inclusive growth and controlled inflation. I have mentioned (in one of my posts on this blog) about contract farming and PPP in infra structure. In the infra structure area, in addition to ports, airports, mass transport systems there is an urgent need to address issues in Energy sector. The Energy Act, 2003 has been a dis-appointment in failing to make an impact in 4 years of it's existence. I have a feeling that the center has been too lax in letting the states get away with delays in framing the rules. Why does even a progressive state like Gujarat move slow in coming up with rules to pave way for wind mill projects in a state having the longest coast line in the country? While Nuclear energy pact with US hangs in suspense, the biggest issues remain- of leakages and of line losses that need to be addressed on priority. Perhaps, dis-investing Transco companies and giving out management control to reputed private sector companies is a good way forward. These bold decisions need political will and unfortunately, the existence of a coalition government and its politics does help our cause.
As, we struggle to put a cap on inflation even as the rupee gains and IT industry sulks, action in novel approaches like large scale contract farming, PPP in infrastructure, Privatizing transcos is the need of the hour. There seems to be a trend or should we still call it a coincidence that the Finance minister, Prime minister and President are all professionals / respected personalities first and politicians next. Directionally we cannot go wrong as long as this continues even as the pace continues to be sluggish.
