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Painful reforms for building a super power India


Painful reforms for building a super power India


Mr. Modi needs to initiate three important reforms: governance reforms, reforms for massive infrastructure investments, and reforms in government spending in the immediate run for making India a super power. First, administrative reforms have been long overdue. A young and new India cannot be governed by age-old pre-independence era mindsets and archaic rules. Mr. Modi’s mantra of minimum government and maximum governance has to be implemented with full vigor in all earnest. Present day youth believe in action not in mere dreams. Job creation can happen through privatization and moving out the government from many of uncalled for areas of activity. Second, reforms in the infrastructure can bring in more and more jobs. Rationalization of rules in the real estate sector in cooperation with the state governments has a great potential for job creation. Further, government spending should dive into creating large time bound infra projects like the Ganga-Kaveri link canal project that has the potential to irrigate huge areas in several states. Industrial corridors such as Mumbai-Bangalore, Delhi-Mumbai, Chennai-Bangalore, Kolkata-Patna could lead to overcome jobless growth by giving a big push for manufacturing sector.
Third, government spending needs a thorough relook. This is where Mr. Modi would face a lot of criticism. Indeed very painful it is for a political leader. Our age-old philosophy of subsidies is on a wrong footing influenced by Nehruvian idea that poor need support. Unfortunately, this leads to view point that poor should always be under the aegis of the government or someone else – which is completely wrong. Poor of India want jobs, not alms. They are not beggars. In the name of social spending, much of our financial resources have gone into the drain. As in the words of the late Prime Minister Rajiv Gandhi, only 17 paisa in a rupee could reach the poor. In such a scenario, why should a country pursue such wasteful programs? What the poor in India need is a job with respect. If the poor get jobs, they know very well how to spend their money and where to spend. The government need not worry about such micro issues. Ideally, the government should look at macro issues that can aid efficient micro management. Doing away with subsidies and creating ease of access for all without discrimination would herald a new era of building a unifying society, which indeed would be great cohesive force for a mighty India in the near future.


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