Get Indian Economy Back on Track

India a land of billion people is a wonderful country in the world. Very few countries in the globe has absolute democracy and India being one among them. Though as a country it resembled some of western countries in politics but India has its own culture and history dating back to per-historic ages. Consumerism was an unheard term in India till 1990.  The current Prime Minister who was then the Finance Minister of the Country liberalized the Indian economy. This according to many is golden age and good time for India. But to me this is the starting of downfall of this mighty country which was unconquerable even by the Alexander the Great. I feel this is a modern way of imperialism.

Looking back 20 years since opening up of Indian Market the out come is no different than it was prior to 1990. There are still same amount of poor and at places it is even more. Similarly there is more crime now than in 1990. I cannot cite a resource here because back in 1990 there was no record keeping of crime in India but I can quote Wikipedia which kind of put the crime comparison between 1953 and 2006

http://en.wikipedia.org/wiki/Crime_in_India

In this article if you see only burglary is the only crime that has gone down rest every thing has gone up and especially murder, and riots have gone up 100 folds. Does it not alarm a bell in you mind. I am not here to say all these crimes are because of liberalization but I am trying to stress here is liberalization is one of the reason. How do i say this? Because when India was opened up for foreign companies the home grown companies and industries are not well developed to compete the global corporations both monetarily and technologically. This had led to huge destruction of wealth at lower end of the spectrum. Some could argue that there was and is a huge amount of job creation in this period. 

Next Big Thing India can do

The economy in the US has started turning around. There are still problems that needs to be addressed before US can fully stand on there legs. Europe is reeling under pressure except for few nations like Germany, and the Scandinavian countries. There a huge negativity exists in the US which we can see in the news daily about China. People in the US wants manufacturing jobs back to their country, but what can we do about it. We can do many things around this.As a country we need to define our manufacturing policy. If you happen to read the new paper recently Philippines is taking over some of the IT and BPO jobs. We being young nation need to get out of this hangover on IT services and get on to Manufacturing which  will have lasting impact on our economy. We the People of this great nation should force our government to adopt a manufacturing friendly policy. Some of the things Govt can do in this Budget according to me are

1. Give tax break to manufacturing for 10 years
2. Raise Tax on IT services from 0 to 1 %
3. Invest on Infrastructure not just telecom but Road, Rail, Water etc
4. Root Corruption out (For this we need to change Govt. Congress is the problem)
5. Encourage small business
6. Break Big Business.
7. Develop internal economy before opening up (Air Lines, Retail etc)
8. Encourage Indian Companies to acquire more companies abroad (not just ONGC, but more banks, engineering etc)
9. Set up Sovereign wealth Fund and acquire or invest on companies that are strategic to country
10. Device a plan to start manufacturing our own Aircraft and Fighter jets and depend less on foreign procurement.

 If we as a country start implementing some of these enormous amount of permanent jobs will be added and huge up-lifting of society will happen. This will automatically enable India to become a permanent member of UNSC rather than seeking support from all other countries. I think UNSC member ship is more of privilege than right as it involves spending money around the world. Further with out a stable and sound economy and happier people in the country there is no point in securing or garnering support for UNSC. This just undermines the entire country.