Bold Reforms Needed to Change the Orbit of India’s Growth for the Future

Context: Recently, India witnessed its steepest decline in gross domestic product (GDP) growth for Q1 FY21 due to the COVID-19 pandemic.

Suggested Reforms:

• Support our entrepreneur(abhimanyus) to overcome competitiveness(chakravyuh):
  • Lower logistics cost by removing subsidy of passenger fare from freight charges various.
  • Lower power cost by removing subsidy of free agriculture power from industrial power
• Encourage global companies shifting out of China:
  • For, E.g. Rolling out the red carpet model of Sanand where Tata Motors could set up a plant at a record pace to attract companies.
  • Leverage preferential access to the domestic market of 1.36 billion consumers to lure them to India.
  • Benchmarks should be competitive: like in Vietnam, where Samsung contributes to over 28% of its Gross Domestic Product (GDP).
  • Learn for the successes of the Information Technology (IT) and Business Process Outsourcing (BPO) industry to propel us towards the manufacturing base of the world.
• Mobilisation of Resources:
  • Raise non-tax resources by :
• Divesting custodian of enemy property assets.
• Bringing an attractive gold amnesty scheme.
• Pursuing strategic divestment rather than market divestment.
  • Privatization and cross-cutting: as practised by Margaret Thatcher in the United Kingdom during the 1970s, to turn around the economy.
• Create a separate judicial infrastructure: for faster resolution of commercial disputes.
• Replicate Amul model in Agriculture sector:
  • Become food suppliers to the world: Our benchmark should be the Netherlands, which, despite half the country below sea level, exports over $80 billion in agricultural produce.

Conclusion: Covid-19 is a major crisis, which we must overcome with such bold reforms to change the orbit of India’s growth for years to come.