ECONOMIC HIGHLIGHTS
New Delhi, 17 January 2008
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INFRASTRUCTURE
By Dr. Vinod Mehta
(Former Director,
Research ICSSR)
For almost five decades India
was content to be known as a “developing” or a “Third World”
country. Then in the last decade of the 20th
century economic reforms happened and the growth rate doubled from around 4 per
cent to 8 per cent and India
came to be known as the “emerging” economy, one of the fastest growing
economies in the world after China.
The developments of the past one and a half decade have
brought a sea change in the thinking of some of our leaders. They all want that
India
should become a developed country in the next few years. It was the former
President of India, A.P.J.
Abdul Kalam, who in his book “Vision 2020” shared his vision of India as a
developed nation.
This change in the mindset of some of our leaders is very
important and gives the necessary confidence to the nation to achieve that
milestone. The acquisition of foreign companies by Indian companies, the
confidence shown by multinational companies in Indian managers, the enhancement
of Indian engineering skills as witnessed with the introduction of the Tata's
small car Nano etc. provides the necessary psychological prop to think of
ourselves as a developed nation in a few years from now.
The average citizen has also started thinking in those
terms. The date 2020 is not sacrosanct in the sense that on 1 January 2020 we
would become a developed nation like Japan
or Germany.
The important thing is that we should start working in that direction and
endeavour to achieve that goal say in the next 20 to 25 years. The timing is
correct, what we need is a clear road-map to achieve that status. The Eleventh
Five Year Plan could be termed as a beginning point for our journey towards a
developed country.
Some people may think of it as a cynical idea. Even after 60
years of Independence we have not been able to
ensure safe drinking water to every person or achieve 100% literacy so why talk
about India
as developed nation? Well this is a brute fact and should be recognized so, and
efforts doubled to solve these issues on an urgent basis.
However, it is the vision which is very important. Nehru had
a vision of India
as a developed country over a period of time. This vision led him to set up
institutions like the IITs, IIMs, Centre for Scientific & Industrial Research,
Indian Space Research Organisation, Atomic Energy Commission. Defence Research
& Development Organisation, Agricultural universities, AIIMS and even
research in the field of social sciences and humanities.
People had at that time also laughed at him but today after
60 years the achievements by Indian scientists, engineers, doctors, managers,
social scientists are known the world over. We are at a stage now where we can
talk about and think about achieving
the status of a developed country in the coming years.
The eyes of many countries are focused on India. The
events and developments are being closely watched by them. There are some
powers which would not like India
to become a developed nation and so are engaged in pinpricking. It could take
the form of denial of certain technologies or ill-treatment of software
personnel, medical doctors etc. Therefore, keeping in mind that other countries
would like to stall or delay our march towards a developed nation, we must have
a clearly defined path to achieve the goal of becoming a developed nation.
As a first step, problems like illiteracy, lack of safe
drinking water which have been with us since Independence need to be tackled on a war
footing. Most of the diseases are water borne. If we can ensure safe drinking
water to everyone the health of the population will generally improve and there
will be less pressure on our hospitals.
As far as education is concerned it is simply not enough to
have literate people but people with a qualification up to a minimum school
level say 10th standard. If the country is going to use computers in almost
every aspect of life, it is essential that the population is educated enough to
handle and work on these gadgets. The Knowledge Commission has rightly
emphasized the quality aspect of our elementary and higher education.
Having said that, let’s now try to build on our strengths.
As we know, the process of economic reforms is on for the past 15 years. In the
past one and a half decade many new first time entrepreneurs have emerged in
the country such as Infosys, Wipro and many others. The process of economic
reforms needs to be accelerated further so that we are able to complete this
process in the next five years.
If the economy is competitive in the international market it
will automatically become a strong over a period of time. Without a strong
economy and a strong financial system we will not be able to keep abreast with
the developed nations. The results of economic reforms are now for everyone to
see; Indian firms are becoming lean and cost effective now.
After the reforms in the industrial sector we should now
complete the economic reforms in the financial sector also. Steps have already
been taken like the establishment of private sector banks, private insurance
companies, setting up of Pension Funds, relaxation in foreign currency
regulations and so on. But we must speed up the reforms in this sector and get
rid of Non Performing Assets at the earliest.
However, we have yet to start reforms in the agricultural
sector. This is an area which has a very big potential to make us a developed
country. Till date, we do not have any agricultural policy worth the name. Our
productivity of agricultural crops per hectare is much lower than the
productivity in other countries. Though we are number one in milk production today
it is due to the fact that we have a large number of milch cattle and not
because the productivity of our milch cattle is high as in other developed
countries.
The market for agricultural products is still
under-developed in terms of infrastructure and access to international markets.
Countries like Holland and Germany grow more grains per hectare than India and get
more milk from limited number of cattle stock. Therefore, to make India a
developed country we will have to bring the agricultural sector on par with the
agricultural sector in the developed countries.
Technologies play an important role in making a country
developed or not so developed. Why America is on the top today is
because of the fact that it has the best technologies in the world. Indian
scientists have also done well to develop technologies which can put India at par
with other developed countries. In fact,
many of our scientists and technologists working outside India have
contributed to scientific research in those countries. If we can get our act
together and consolidate our position in the technological sphere then we can
claim to become a developed country.
There is also a need to change the mindsets of the people to
bring them in tune with the one in developed countries. For instance, over a
period time we should start reducing our dependence on concessional loans from
various countries and instead start giving concessional loans to other
developing countries.
When collaborating with foreign countries on research we
should always insist of becoming an equal partner instead of a junior partner.
For participation in international conferences we should stop taking any
assistance from developed countries for our travel and stay by arguing that we
belong to a Third World country. We should be
able to pay from our own resources for participation of our academics in
international conferences and symposia.
Finally, we also need to have a world-class infrastructure
ready in the next 15 years. We need to set up a world-class communication
system, transport system including good road and rail network. All these are minimum requirements for the
emergence of a developed nation, which India aspires to be. ---- INFA
(Copyright India News & Feature Alliance)
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