Startup India and Bharat
The start-up action plan unveiled recently by prime minister Narendra Modi comes at a time when India’s economic growth is slowing perceptibly for a host of domestic and global reasons. Any measure to generate employment, create wealth and improve the economy is welcome. But the launch of “Start-up India” looks like a hurried act to increase industrial production at any cost. The announcement of the slew of incentives to boost start-up businesses seems to have sprung from the government’s need to give the impression that there is no ‘policy paralysis’. The decision to do away with labour inspections goes to overvalue wealth and undervalue labour. A corpus of R10,000 crore is hardly sufficient to meet the fund requirements of potential entrepreneurs. Obviously, many people are so impoverished that they do not have a stake in what the government proposes to do to infuse new energy into the economy. Occasional high-sounding schemes do not enable the masses to cope with economic woes, especially persistent rising food inflation. The sort of growth sought to be propelled is so lopsided that the vast majority of people remain mere spectators of the ‘growth story’. For transforming their lives, a new, people-centric model of economy commensurate with the political philosophy of radical humanism is imperative.
G David Milton, Maruthancode (TN)
Getting it right on reforms
Apropos of the reports surrounding Modi’s cabinet rejig, China, after a long and sustained growth of around 10% till 2010, set in motion incisive rebalancing entailing a drop to 7-8% growth in 2012-2014, and the figure is now dipping further. This is the price it has chosen to pay, a set-off from its enviable growth numbers, to mould a more stable and robust future. We too registered a steady 8%-plus growth up to 2005-06. Major reforms as the land Bill and GST were then introduced, only to lose precious and opportune time in a political kerfuffle.We have needlessly ceded momentum. Fortuitously, the Chinese economy is on a shift from manufacturing, towards services even as we are attempting the reverse. We could well fill up the vacated space to our advantage. For an economic rejuvenation, the PM needs to have a grip and foresight on the very misty global economic scene and yet be politically-savvy at home to pilot reforms with tact and fiscal prudence. That should challenge even the best of talent.