Thursday, December 10, 2015

How to open path of Development?

How to open path of Development?

Make in India is a tiger leap of our present Prime Minister. If succeeds, it will transform the economy and will resolve many problems of India.

How could our entrepreneurs sustain with high production cost at home and against the dumping of cheap goods and machines by the Chinese and other countries?

People's expectations from governments are increasing. Govt spending is increasing, putting pressure to generate more revenue through taxing or borrowing. The stress of the governments mostly passed on to the tax payers.

Gross NPA of our banks will reach to 6% and the assets under stress will be around 12%. How could the banks take risk of landing? Informal sector is dying without funding and organised sector is drying up resources through NPA.

Some entrepreneurs instead of focusing on competitiveness by quality improvement and cost cutting, spend more wisdom on doing irregularities.

I remember one discussion on startup companies, the entrepreneur boy was questioning the space and money utilized by government functionaries. Not only the salary, but the per capita cost of building, furniture, transportation, communications, perks and facilities, etc, is very very high, compared to their output.

Corruption in the system add on to the cost of the products and services.The Elections are getting expensive. Party funds!

All put together make the products and services expensive that can't compete with the international competitors.

We can't become "make in India" through the "western style life in India".

India lives in villages and in urban slums. Unless we make all our BPL and little above BPL houses the centres for making goods and services of the local needs through informal sector development, our problem of poverty and unemployment will continue.

Rightly mentioned by one of the seniors that Agriculture sector needs focus through technological innovations, and making it attractive profession for the youngsters.

We copy more and innovate less. Our R&D spending is very low. Our machines are costlier than the machines of China. China under the stress of depression may dump loads in India. I have witnessed less attendance of Chamber representatives in Guangdong business delegation visit because they were afraid of the entry of Chinese companies in the products they manufacture.

Our electronics, electrical appliances, cosmetics and other goods are flooded with the make in foreign companies. It is ok till they are produced in India and the profit is reinvested in India. Otherwise, they are new forms for East India Companies, not political but will bring Economic Slavery to us. FDI for gambling in share market is not a good investment.

We need investments, need technology, but not the goods and services made by the foreigners. When shall we use all goods and services made in India? Made in by our demographic dividend, the young India. Just for 10 years, the whole economy will be transformed. Swadeshi has big power.

29 November 2015 

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