Economic Highlights
New
Delhi, 16 January 2015
Progress Impeded
PEOPLE-CENTRIC PLAN VITAL
By Shivaji Sarkar
Indian economy is going through a crisis. Despite
fall in global oil prices, some moderation in inflation – not fall, small 2.2
per cent increase in industrial production during the past eight months, even
interest rate cut, there remain too many impediments. It needs course
correction.
For instance, the dreams of a digital India are being
hampered by none other than the biggest Government entities such as Bharat
Sanchar Nigam Limited (BSNL) and the postal department. The BSNL unfortunately
rarely connects even in the National Capital Region (NCR) areas of Ghaziabad, Noida, Gurgaon and Faridabad. For weeks and months, broadband
connections and telephones remain out of order despite innumerable complaints.
Postal department does not deliver important letters, documents, magazines sent
through the ordinary post. Sadly, these are belying Prime Minister Narendra
Modi’s efforts, as it seems their aim is to “disconnect” India. Even
private service providers are no better.
Tax on bank deposits, another major impediment, hits
the poorest the most. It erodes his income and must be done way. Prices in real
terms have not come down. The benefit of oil price cut is yet to be transferred
to the people by the corporate and government manufacturers or service
providers. The statistics of inflation and market conditions are different.
Prices of food items, including vegetables, mutton, chicken, eggs, milk as also
textiles, medicines, health continue to soar.
Highway tolls linked to wholesale price index,
despite its fall to zero level, have not been reduced. It leads to high fares
and travel cost. People travel less and help grow disconnect. Railways fares
were linked to FCA – fuel component adjustment. It meant as prices go up fares
would be increased and also as it comes down these would scale down. The first
was affected because the Railways were “losing” but the second has not been so because
as Railway Minister Suresh Prabhu says the Railways need money. So the poor
passengers have to satiate and suffer cut in facilities and services. Poor
people’s trains have taken the biggest hit for the rich man’s fast trains. The Railways,
once the leveller, is ensuring the increase in the rich-poor gap!
The UPA Government has left the poor man’s LPG in a
mess. Every family whether having an unwanted “aadhaar” or not needs fuel to cook its food. The dual pricing –
subsidised and non-subsidised – has virtually led to a thriving black market.
Direct benefit transfer (DBT) needs a study as to who is it actually benefitting.
The market gets convoluted with a dual mechanism. It is accumulating commotion.
So are the issues of electricity and many other
services. People want to know why they should have to pay fixed charges when
they are paying a high tariff. Are the service providers specialising in evolving
ways to create maximum discomfort for their profits?
Government entities, be it a transport corporation,
electricity boards or municipal corporations were created by for the people to
care for their needs at affordable prices. Somehow during the years of
Manmohanomics it changed to profiteering. People do not grudge small profits
but the way they are being fleeced makes them truly uncomfortable. The concept
of a Welfare State has been sadly given a go by. It has to change now.
Every aspect cannot be left to the corporate. Even
the most corporate savvy US does not do that. Various laws and anti-trust
mechanism force the corporate to serve the people. India also needs that. They cannot
have profits and more profits despite fall in input costs. The US takes care
to keep consumer prices at the affordable lowest. That is the strength of its economy.
And, that is the secret of the strength of its dollar.
Investment is necessary. But it also requires a
climate. It comes with the people’s capacity to pay. During the past ten years
it has got eroded at a fast pace. People still recall the days of former Prime Minister
Atal Behari Vajpayee’s NDA for this reason. That period had given the economy a
push. Later, it was brazenly eroded by an extreme pro-corporate, less
people-friendly UPA government. People want those dreamy days back.
Once again, the people remember Vajpayee for easy
availability and removal of controls. It was an easy era indeed. But the UPA
representing vested interests brought the worst dreams of the age of controls
back. Now people want the NDA II to trudge on Vajpayee’s footsteps.
Agriculture has taken a back seat during the UPA
regime. Prime arable lands were transformed into SEZ, factories and real
estate. It has led to loss of over 25 million hectare area of farm land into
non-producing profit generating entities. Food security is at stake because
land is becoming scarce even in prime farm areas such as Kannauj, the
constituency of Uttar Pradesh Chief Minister Akhilesh Yadav and his Member of
Parliament wife Dimple.
The smaller farmer is being edged out. It is
benefitting the corporate farm bodies and not bigger farmers as is often being
touted. Without the farms and independent farmers, food security would merely
remain on paper. Over 70 crore (700 million) or 54 to 58 per cent people
subsist on farms and farm-related activities, according to Government
statistics, on a small GDP contribution of 14 per cent. No corporate or any
amount of monetary investment has the capacity to employ so many people.
Agriculture remains the base of the Indian economy.
It is an undeniable fact. The perspective has to change to empower agriculture
so that the entire rural hinterland’s economy grows at the pace of the biggest
metropolis such as Delhi.
Higher GDP growth at the behest of farmers and their families would transform India. The past
decades of negligence has created the divide and slowdown. Remember, elimination
of small farmers has affected the European economy. India has to learn from it. Can we
expect a red carpet for the farmers in the Union Budget?
The NDA II has to sit with its many adjunct groups of
farmers, workers and other think tanks for course correction. A vibrant economy
needs to come with a low affordable cost. It requires a holistic look. Niti
Ayog – the new decentralised planning body needs to do just that. The country’s
needs have to be enumerated for an overall development. The people, the work
force, the last man, as per vision of Deen Dayal Upadhyay need succour. Planning
has to be people centric. That would be the first step to stave off the crisis
as also the problem of Government’s fiscal deficit. --- INFA
(Copyright,
India News and Feature Alliance)
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