Necessary Implementations To Develop Indian Economy

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The Indian economy has had the distinction of being one of the fastest  growing economies in the world over the last three decades. Yet today, there is a sense of economic malaise in the air.  The young are feeling frustrated as there are too few god jobs on the horizon for them.  

About half of the households of Indian population are living in rural areas and more than 70% of the household does not have means of assured income, work as agricultural laborers as they do not own any land and are poor. The Govt. of states and Union should stop pampering the employees employed by them for massive pay increases by periodic pay commissions and direct the money accrued out of austerity into capital infrastructure to provide viable employment like dairy, farming machinery and provide means of poverty alleviation by Aadhaar based direct transfer of funds and scrap the corrupt public distribution system. 

As the Govt. run on public money, they have no mandate in running loss making industries for that matter any industry, PSUs should be disbanded and sold to entrepreneurs who can run these PSUs efficiently and profitably. 

Implement Digital platforms for various multiple clearances, simplifying them and facilitate transparency for all the existing and the new ones, employ third Auditors of every discipline party to enforce such rules are complied with. 

As also allow the lowest rungs of democracy like village Panchayats free of political party affiliations so that true democracy is practiced by Honest individuals at every aspect of local self Governments like village panchayats, towns and corporations. 

India must change its economic thinking and adopt Keynesian theory. This theory states that increased Govt. expenditure along with lower taxes shall stimulate demand and pull the global economy out of depression. This theory envisages that, prices are somewhat rigid, fluctuations in any component of spending - consumption, investment or Government expenditure - cause output to change. For example, if Government spending increases and all other spending components remain constant, then output will increase. This theory served as the standard economic model in the developed nations during the later part of Great Depression, World war II, and the post-war economic expansion (1945-1973). It has lost some influence following the Nixon shock, oil shock and resulting in stagflation of the 1970s i.e. economy experiencing increase in Inflation and stagnation of economic output and relatively high unemployment. If India increases its debt to 90% of GDP , then everything will change. 

Last but not the least address the issue of the creamy layer among the Reserved class reservation to poor people to access best of health, education and welfare irrespective of cast, creed and religion. The only thing that the Govt. needs to do immediately do is to educate the people, rest people will take care of themselves.    

In the absence of structural reforms for transformative growth, a rural led growth strategy is the only option for economic revival at this point of time. Growth may be slower but it will be sustained. Supply- side measures like Corporate cuts will not help.

Once the system becomes transparent the business and infrastructure grow, automatically the economy will grow at faster rates.      


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