As we enter yet another year, its time to take a step back and take a holistic view of the achievements and lessons of 2011. As far as the UPA is concerned, there is no denying the fact that the year had brought some significant challenges. But then, as they say, there is a great opportunity in every big challenge. Still, year 2011 will be remembered for several progressive measures.
The government cleared a new manufacturing policy, which envisages setting up seven national investment and manufacturing zones with single-window clearance and flexible labour laws. The new draft telecom policy was formulated, which aims to achieve 100% rural teledensity by 2020 from the present 35%. The policy further mandates that 80% of telecom equipment be domestically manufactured by 2020. The government released a strategy paper in May to double exports to $500 billion by 2103-14 and formed a comprehensive economic partnership with Japan in August. All these are significant from a medium- to long-term perspective.
Much more could have been achieved, had it not been for the widespread pessimism created by a handful of vested interest groups.
In 2011, the government and policy stakeholders made steady efforts to take growth to the common man. The challenges faced in 2011 could well be paving the way for opportunities for the Indian economy to tap in 2012. Led by the services sector, states like Haryana have been able to post growth higher than the national average since 2004-05. The state?s industrial policy and infrastructure focus are expected to help Haryana emerge as one of the leading investment destinations in the country.
A lot more remains to be done in 2012, focused on regaining the confidence of investors. The myopic vision of the irresponsible Opposition was one of the major factors for the dip in the growth of the economy. In 2012, we hope it plays a more constructive role in the economic reforms needed by the country.
The key sectors economic reforms the government should focus for 2012 are FDI in retail, telecom and IT& ITes , urban and rural infrastructure, power, food processing, national manufacturing policy and civil aviation.
One of the most aggressive policy reforms that UPA will have to undertake is on the retail front. The ill-conceived fears spread by intermediaries ? and unfortunately, also by a large section of the political class ? must be allayed. It is extremely important for the sustained growth of the Indian economy. At a time when disposable incomes are rising, there is no alternative to investing in world-class technologies in the retail sector. This is the only way the perennial problem of inflation can be addressed. When global chains like Walmart are competing to offer cheaper foods every day, why should we let our common men fight ever-rising food prices? Organised players also bring more stable and higher income streams for farmers. There cannot be a better win-win situation for consumers and farmers. Fears that FDI will kill common kiranas is also misleading. If kirana shops can co-exist with home-grown corporate retail like Big Bazaar and Reliance, they can also co-exist with global chains. It is highly unfortunate that a move like this was scuttled just because one political party is heavily dependent on the support of these intermediaries, who cause speculation and hoarding in food commodities.
Let?s hope that 2012 will be a year of rational thinking, that will lead to constructive all-round development of the economy.