Prime Minister Narendra Modi has set the stage for ‘congenial’ growth of Indian economy, keeping in mind the current ‘global’ market conditions and existing political surroundings in the globe. I appreciate this as a right timely and wonderful foresight!
At the same time, he has set a high benchmark by projecting himself as a trans-formative leader. Note, he has the equivalent opportunity to do what the US President Barack Obama has achieved by turning around the US economy after its ‘near collapse’ in the the year 2008. The ‘Make In India’ initiative and the proposed digital platform will help and so will his ‘foreign visits’ to Japan, China and United States of America within first four months of assuming PM’s office. His speed is remarkable and exemplary. He has not wasted much time by any means or standards. He has displayed astute planning and inspiring leadership skills during this short period. He has retained his image as a progressive detail oriented business savvy national leader of a developing country. No wonder many have designated him as the ‘Chief Marketing Officer of India Inc.’
There are some thorny issues like that of retrospective tax legislation in India as a result of altering of Income Tax act. Possibly, India is perceived to be the most taxed nation – because no one can understand why the tax amount collected is not properly used. There are no visible benefits seen viz. in terms of required infrastructure, or provision of exact basic utilities such as water and electricity supply in most of the villages. In fact, there is a dearth of sufficient supply of electricity and water in many metros too. So, in effect, no one wants to actually pay the tax amount in India .. like it is done in the developed countries. There is a parallel economy which consists of un-accounted money besides what is earned through improper or illegal means. This parallel economy is huge and much larger than that of accounted money.
Political stability and effective governance will be the main drivers to take Indian economy to an enviable position of regional or even world leader in the 21st century. The 3-D (democracy, demographic dividend and demand) advantage will be realized only if these two drivers are put to action. Mass education and skill development are going to be the other enablers to en-cash the inherent 3-D advantage of India. Just highlighting or talking about this 3-D advantage will not be enough.
I hope the Prime Minister will set our economy in order since that is the need of the hour. Any more foreign visits will not help if we are not ‘internally’ ready to realize the 3-D advantage.