Posted in Finance Articles, Total Reads: 2920
, Published on 08 August 2011
India has been one of the most astonishing growth stories in the world of business. At the turn of the 21st century, India has gradually made its presence felt on the world map with increasing trade. India has become the face of emerging economies and has grown in leaps and bounces in every field. However, India now has to revise its policies so as to adapt to the newer strategies to make sure that it not only continues its progress but also reduces the gap between the poor and rich. Some of the policies which need to be implemented are discussed below :
1. Agricultural reforms
If India needs to become a super power, it needs to ensure that the grass root level is strong. This can be achieved only if agricultural reforms are done which help curb price inflation, reduce food prices and also boost the declining agricultural economy. Improvement in logistics, between storage and warehousing, proper implementation of Public Distribution System (PDS) schemes etc should be the priority of the government.
2. Public Private Partnership PPP
India is such a diverse and huge economy that it would be difficult for the government to observe total control over all the things happening in the corporate world. The government should promote PPP which would not only reduce the financial burden on the government but would also ensure strict implementation and transparent processes in the business world.
3. Foreign Investment in the retail sector
Another major policy would be to allow major foreign players in the retail industry. The entry of retail chains would help in eliminating the intermediaries between the farmer and the consumer in the supply chain. This would not only help curb the rising prices but also yield a good price for the farmer.
4. Reduce bureaucratic hierarchy and red tape
Policies need to make sure that pending projects need to finished and implemented as soon as possible. Reduction in the bureaucratic hierarchy and red tape would ensure speedy completion of projects like highway roads, nuclear energy plants, rehabilitation etc.
5. Accountability of expenditure
The most important policy would to make sure that all the money which is being used for implementation of projects like NREGA, Sarvashiksha abhiyaan, Aam aadmi etc are accounted for. Strict and heavy punishment should be given to people responsible for illegal accumulation of wealth, be it a private businessman or a government employee. Black money should also be reduced and steps should be strictly implemented in bringing back the black money.
6. Investments in manufacturing to generate employment
Policies should ensure that corporates invest in the manufacturing sector as this would help create a job for millions of people, who despite being qualified are unemployed.
There is never a simple and straight path for success. India is at a crossroads where a part of its population rules the world and the remaining population struggles for survival. The story of the Indian economy can become a fairytale if certain new strategies are adopted to further boost the growing economy.
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