The Government has to deliver – Rajendra Pratap Gupta


Manifesto 2009 -2014

Government must Pledge the nation to fulfill the promise of REAL Development.
YES – That’s the only way …
Empowered women – Vibrant India
Cheerful farmers – Progressive India
Educated & Financially strong youth – Strong India
Well Equipped Soldiers – Safe & Secure India

Rajendra Pratap Gupta

Contents
Preface
Every nation has the government it deserves:
Congress Scorecard 2004-2009.
India Today :
Time has come : It is the worst crisis ever !
Y-our agenda
Priority areas. (YES) Youth, Economy & Security
(REAL) Development – Rural , Education , Agriculture & Livelihood
Food , Clothing , Clean water and Healthcare for the Common Man
Economic Development
Key issues
Solution :
Youth and Women empowerment
Employment Generation from Different initiatives
Organised -Unorganised Sector
Urbanization of rural areas
Retail trade & Shopkeepers community-
E-Governance
SME
Police reforms , National Security & Terrorism
Education and vocational training
Cultivation & Agriculture (IEC- Irrigation, Electricity & Credit) –
Transport
Banking & Finance
Judiciary.
Poverty Alleviation
New thrust areas for bold actions
Economy of the people, by the people and for the people of this country:
Village Republic Scheme (VRS) & BOARD
Healthcare
Adopt a child, senior citizen, Village, School & PHC scheme
Administrative & Governance reforms
Special abilities – disabled, BPL, Beggars & Destitute
Urban infrastructure
Tourism
Energy & Environment
Loans & Housing
Goods & Services Tax (GST )
Yoga , Mediation & Sports (YMS )
Labour laws
Population Control
Constitutional & Electoral reforms
Defence forces
R&D
Income & taxes
Defence technology SEZ
Export Oriented SEZ for wine
North East Region
National Task force for Animal husbandry, Milk processing, Food processing and fisheries
Post & Telegraph
Private Public Partnership
Cooperative Movement –
Consumer protection movement
Media & Sting Operations –
Disaster Management
Common Civil Code.
Backward – BIMARU States
Tribal Development
Wool Production
Good Governance
Foreign Policy

Preface
Having reaching here to read, i believe you are concerned about this nation with this, i must take you through my journey of how i wrote this Manifesto 2009-14, and why it is important for each and every concerned citizen of this country.
Sometime in 2003 i wrote a book ‘Truth Alone Triumphs’ which was not published for public, but was sent across to all leading decision makers, politicians, influential people and Journalists. Most of them acknowledged and sent me their best wishes. Sam Pitroda wrote back ‘ You must enter politics to change the system from within’, Similarly , many people including the Prime Minister , Speaker of Lok Sabha , leader of the opposition appreciated the content ‘ as good for the nation to follow’ ,and sent me the note ‘to spread the message’. Over the last couple of years, i have written a number of open letters to our Prime Ministers right from Shri Atal Behari Vajpayee to Dr. Manmohan Singh. Outcome, as you all know, a formal acknowledgment follows with appreciation.
Sam Pitroda , whom i have always considered as an architect of modern India through his revolutionary PCO booths earlier , and now as the chairman of the National Knowledge Commission. The PCO’s, i believe, had reduced the distance between geographies, created a rural & urban connect, empowered a lot of entrepreneurs. With his PCO movement, suddenly people used to days of travelling to talk to people or communicate through our lethargic postal system suddenly started talking whenever they wanted, Indians got a new high and India was now a connected nation. I my view, his innovative leadership catapulted India and sowed the seeds of the current IT revolution which has put India ahead on the IT & BPO map. Even today, his recommendations as Chairman of the National Knowledge Commission, if properly implemented, can bring an enormous benefit to this nation.
Besides Sam’s comment on my earlier book, three people came out to meet or associate or help. Dr.A.P.J.Abdul Kalam met me, sent me the details of Viksit Bharat Foundation, where he has invested his entire earnings. His office has been in touch for all the years he was the President, and still is reachable at a call. Through Dr.Kalam’s office, i was able to get one important change done – ‘Bilingual labelling of medicines ‘. When only 5 % of the people in India know English, why medicines sold in India should carry the name in English? Dr.Kalam moved this through his office and got it implemented. The other important change i was working was ‘None of the above found suitable’ in the ballot papers. This was sent to the Chief Election Commissioner, J.M.Lyngdoh and Dr.Kalam. I wish he had a second stint; this change could also have been done.
Second person who came out to connect, is a top politician, a former Union cabinet minister, founder of BJP & honoured with the best parliamentarian award, Dr.Murli Manohar Joshi, He has always been available to meet me whenever i wanted, and kept boosting my morale for making a

positive contribution to the nation. Last year, Dr.Joshi summoned me to write the manifesto for BJP. This could have been a great opportunity to contribute to the nation. Moreover, for the first time, i was being asked to write the ‘Vision document – the Manifesto’ for a leading political party. I wrote from a ‘common man’s’ point of view. Off course, all was not accepted by BJP’s parliamentary board .But still, they took a major portion from my original draft. Also, i must say that Dr.Joshi is rare politician, who practices highest standards of ethics, which is difficult in today’s political environment. I am left to wonder sometimes, how he has survived politics in today’s tough and highly corrupt and institutionalised system. Third personality who has been like a God send gift is a world renowned business guru and acclaimed author, Shiv Khera .Who shares the same passion for the betterment of this nation. He appointed me national President of the organization he founded, Countryfirst. Despite his busy schedule & sessions, he is always reachable and hopefully, one day, he will see the nation changing during his lifetime.
All these people have been a real boost to my activities, and gave me ample opportunities to speak & share my ideas with a whole lot of people.
Back to the manifesto: While the manifesto written for BJP was shared with the parliamentary board of BJP and they decided to pick and choose what was politically helpful and could add to the to the vote bank. Since a lot of research and hard work was done for writing this document of national importance , i thought , it would be good to publish it for a common man to see how the common man’s vision and party’s vision could be aligned . I had a chance to go through the earlier manifestos of both the parties (Congress & BJP); it is shameful that most of the promises are not kept by any of the parties after taking the reins of power. I sincerely hope that the government in power will go through this, and use whatever it considers useful. I am sure that this time, the party will try and implement most of the points mentioned in its manifesto. Though, it is not possible for any government to implement all that is promised in the election manifesto. But still, if 80 % of the promises are delivered upon, it is not doubt, great performance for any government. I also wish that the common man takes the responsibility for change to ‘himself’.
My view is that, the government’s agenda should not be election oriented. It should be drawn from the requirements of the grass root level public. We all saw that Manmohan Singh’s government sacrificed the support from the Left front to get the nuclear deal through; it was at the cost of the government. Finally, we have seen that he is back with a thumping majority, and Left is reduced by its humiliating defeat. This in itself proves that good work cannot go unrecognized. So, the current government must pay more attention to the steps that lead to employment and income generation. The government cannot clap with rising Sensex, as rising Sensex does not raise the GDP of the nation. We also cannot build a lasting economy on dollars only. We need an economy that focuses ‘value creation’ of about 80 % from domestic sectors and for the majority of the population. Exports must never exceed 20 % of the GDP, if we want to create an economy that can grow 10 % for the next 10-15 years.
Sadly, in the last 60 years, 60 % of the population still lives below a dollar a day. Think how they can survive when rice is above Rs.20 a KG, Pulses above Rs 60 a kg, Ginger Rs. 80 a kg? We need to

Convert these people into earning and spending class by imparting them basic skills. We need basic skills at the base of the population, higher & specialised skills at the top level in the population for taking this nation ahead on a faster growth curve. Every year, India must aim to lift 5 % people above the poverty line, and then India can truly become a developed nation in the next ten years. We need to create new income streams; NAREGA is not a solution for such a massive population, the only way these people can grow is by hard work. India has the best of brains but lacks the generation of leaders and will power to shape an actionable road map to harness the potential of the people. We have seen wrong policies being implemented; only Delhi and Mumbai get the most focus and funds. No wonder we are facing migration from smaller towns to these two cities. I have always heard people talking of making Mumbai as Shanghai. Why do we not convert ten smaller Indian towns into Mumbai rather than just looking at already over burdened towns like Mumbai becoming Shanghai? I would also like to see some paradigm change in the tax structures, why do we have an income tax for individuals at all? Tax expenditure! Let people pay taxes only when they buy goods and services and not on their income. Why can we not have such a system?
Now to recession: What everyone is calling a global recession is not a recession. The world has pressed the ‘Reset’ button. With this, a new multi polar world is going to emerge; it will end the uni & bi polar world. Now we cannot dream of independent economies but a truly connected and an interdependent world, full of surprises and opportunities .It is a fact that America has lost all its innovation and it is coming to India and China. Every recession has shifted the power. Earliest recession shifted the position of global power from U.K. to USA & USSR. This recession will finally shift the power from USA. It may be quite unfortunate, if we cannot use this opportunity. Indian Economy is like a sleeping giant, the day it gets up and starts running, no one can stop it. It is a force of a billion brains, and we know what ‘charged’ billion brains can deliver. The current government has to wake up this giant and charge it. Here is the key:
Youth , economy and security are the three key issues before the nation and that is why the acronym ‘ YES’ , and the action of the government need to be towards REAL Development .i.e. Rural , Education , Agriculture and Livelihood . So this acronym REAL. We cannot afford to lose time and focus. Also, the current leaders need to include more common people from the public and a younger generation to lead the nation for the next 25 years.
Our scientists and youth have struggled a lot to reach where we are today. Those who can struggle to survive are the best people to innovate. We have so many opportunities to create jobs, money for the people that we cannot just count our success on increasing FDI or WPI based inflation control to pump the economy or the NAREGA scheme. People are losing jobs & hope with every hour passing by. We need to set our own limits and set out achieve them. It is time for the current government to deliver on the economy by focussing on SME’s and Agriculture. This can lift the economy into to a new orbit.
Foreign money is never free, it comes with its own riders and when it exits, it causes unbearable pain. It might be prudent to divest some of the PSU’s or all and deploy the money into the development schemes. Black money economy is a parallel economy, and is more than our real GDP.

This must be checked and brought back into the system for development. It is time to re-look at our policies, priorities and politics, and do an introspection to evolve out a new growth paradigm. Fire
Fighting and re-construction are two set of activities on the same place and need to be handled by separate teams.
So far, election manifestos have always remained for the media and not for the public. I wish the concerned citizens to review this manifesto , work out their local manifestos based on the local agenda, for each district and approach their local representatives to adopt that and work for the constituency . Politicians have to work for us and they are just public servants and not our masters! We must take India ahead of the world. I will call it ‘India Ahead’ campaign.
We have to come out of our shells and become assertive individuals not only for ourselves but also for our nation. Today, we should not talk about ruling party and the opposition, but of ruling party and the watchdog party but work constructively. Together, positive changes can take place not by criticising, boycotting, opposing and disposing but by participating proactively. I am sharing my vision for what the current government needs to do. We all need to wake up and participate then only, we can change the nation for the better. India has always addressed problems that are non-existent. For examples, we are finding out what is wrong, what is missing in a nation of a billion minds? Trust me; India has all that can make it a strongest, progressive and a powerful nation in the world. Just two things are missing; Honesty and courage. If we all decided to be assertive with our honesty and courage and don’t have dual lives, no one can stop this nation. We talk about corruption but we are active partners. I have always seen that people blame our system of administration. With my personal experience, i can assure you that, we have the best administrative system, no one follows. Today, if you complain against a government employee, an action is certainly taken, but how many of you complain?
The key for the success of the government lies in its active citizens. We have a passive electorate so we have outdated leaders, the moment we participate and start questioning the politicians about our rights and money and how it is used; we will never have to read this book again! Inefficiency cannot tackle inefficiency!

Best wishes,

Rajendra Pratap Gupta
E-mail: rajendra.india@gmail.com
mail@rajendragupta.org

Every nation has the government it deserves:
Congress has ruled this nation for more than fifty years and other governments have ruled for around 8 years let’s examine what they did to this nation?
In the last sixty years, the leaders have contributed immensely to deteriorating the economy and suppressing the rights of the common man, by denying him the right education and running the economy on the ‘Self serving’ license raj. It was only in the 1990’s that the policies led India towards Bankruptcy, and the economy had to be liberalised on the directions of the World Bank. We should not forget that, a single party running the nation for more than 50 years, it did not let the common man to get proper education, as ‘The Common Man’ would have protested for change. The self serving leaders never wanted. A huge Population under the misrule has just remained a mere statistics and a vote bank to be used during elections and abused thereafter. Respect for talent and merit has never been a norm in the any political party. No party practices democracy at home, how can they practice democracy in the nation? Respect for democracy and talent is still to emerge with the politics of this nation maturing.
We are still talking of Indo-US nuclear deal forgetting that, with or without the Indo-US nuclear deal, India should have become a self sufficient state – A Self Reliant India by now.
Leaders have in the last few years built an economy aimed at serving the developed world only, and reduced India to a body shopping country. People have always talked of strong fundamentals in Indian economy. If at all, the Indian economy is strong, then why it is sliding day by day as the developed world sinks deeper into recession? It was never built on strong fundamentals. On the contrary, fundamentals were never addressed. The moment the foreign economies got into trouble, we got into a deeper trouble. This proves the shallowness of the economic principles and that Indian economy was not build it was sold to foreign economies and now that these economies are in trouble, we are in a deeper trouble. None of the political leaders understood what India needs to have to build a robust economy. Today, we are saddled with the burden created with myopic policies of the leaders, and the whole world is adopting protectionist policies and we are going to head for a painful 2009-11. USA will be saddled with trillions of dollars of deficit and will find it difficult to come out. India must avoid that path.
Inflation hurt the common man by taking the prices of daily needs sky high. Though, leaders have manipulated the numbers, it is hard to believe the cooked inflation numbers, as the prices still remain high

At the time of budget, Congress talked of constitutional propriety and refused any stimulus in this financial year. Suddenly, Congress let loose everything throwing the economic principles to the winds. Such Adhocism is only a sure shot recipe for disaster and conveys that Congress knows how to capture power and not how to empower India. Even senior congress leaders like Mani Shankar Aiyar have written, that economic reforms have led to lopsided development outcomes- 836 million Indians haven’t felt the benefits. It remains a big challenge to see how the same people can deliver different result.
Below is an ‘Eye Opener’ on what political parties have contributed to this nation: Key democratic institutions have been used as weapons of vendetta or denigrated. Credibility of the institutions is eroded beyond imagination.
A Failed Judiciary:

On Feb 6, 2009, the Supreme court said that , the Criminal justice system has collapsed – Making the chilling observation, which too many only confirmed the widely held perception of the erosion of the system, a Bench comprising Justices B N Agrawal, G S Singhvi and Aftab Alam also said that the lower judiciary had decayed. “The courts of magistrate and munsif have ceased to be an option for the common man,” the Bench said and compared the lower courts to ill-equipped and ill-staffed public health centres (PHCs) in rural areas.
Only those people go there who have no other option,” said the Bench as an apparent indicator of the low measure of public faith in these courts, which are the first points of dispute settlement for the masses.
While the last Election manifesto of congress in 2004 quoted ‘Immediate measures should be taken to drastically cut the delays in courts, particularly in the high court’s and in lower levels of the judiciary’.

Central Bureau of Investigations: “Only God can save the situation”.

On Tuesday 11th Feb, 2009, the Supreme Court said the CBI was acting at the behest of the law ministry while investigating the disproportionate assets case against SP chief Mulayam Singh Yadav and his family members. An exasperated Bench said, “Only God can save the situation”.

“You are acting at the behest of the law ministry. You are not acting on your own,” said the bench comprising Justice Altamas Kabir and Justice Cyriac Joseph ‘

Ironically, the last election manifesto of congress quoted ‘An administrative reforms commission should be established to prepare a detailed blueprint for revamping the public

Administration system completely so as to make it more performance oriented and accountable’.

Divided Election Commission: Fading hopes!!

The Chief Election Commissioner’s recommendation for removal of Election Commissioner , Navin Chawla ahead of the general elections brings to the fore the differences among the three-member body which has often been marred by clashes over crucial decisions. This is the second pillar after the Judiciary that safe guards the democracy. Under the current s rule, The Election commission’s decisions cannot be trusted anymore. Apparently, looks like, that the system has lost its credibility. Whereas, the Election Manifesto of Congress quoted ‘Congress is deeply committed to electoral reforms’. I do not understand how come the last election commissioner became a union minister for youth and sports affairs? Same happens to most of the people occupying the posts of judges and officers who get elevated to Rajya Sabha or as diplomats or get nominated in different government bodies.

Congress is not in favour of Aam Aadmi??? Poor accountability on spending:

The CAG (Comptroller and auditor general) report released on 20th February 2009 said that the centre’s Aam Aadmi Bill was highly inflated. According to CAG, the funds meant for social and infrastructure development were diverted to celebrations and giving aid to NGO’s and other expenditure rather than creating infrastructure.

Remember Rajiv Gandhi saying, out of every rupee meant for the poor only fifteen paisa reaches the common man. This is what the leader of party said, whose family ruled this nation as its fiefdom since the very independence! On 26th April 2009, at Gangtok, Rahul Gandhi went a step further to say now on 15 paisa reaches out of Rs.100. If so is the case, what have the successive governments done!!

We are living at the mercy of the terrorists.

The less we talk the better. This government has failed utterly against terror. We had all kinds of attacks at all the places – Air, Land & Sea. It is not just Kashmir, it is all across. We are totally at the mercy of the terrorists. Successive governments have let the nation down badly. Congress accepted its failure to act against terrorist in the form of sacking the Union Home Minister, Shivraj Patil. If politicians don’t act fast and decisively on terror, we are readying India for another partition.

Financially, our economy is at its worst:

The fiscal deficit for 2009 would be in around 11 %. The Fiscal deficit budgeted at 2.5 % of the GDP this year, Should end up at 6 %, to which should be added another 1.5 % of the GDP for the off-budget items like dues on oil and fertilizers companies. Throw in another 3.5 % of

GDP of state government deficits and India Should have a consolidated fiscal deficit of 11 % in 2008-9. Remember, during the CITIZENS led NDA, Revenue deficit never crossed 4.5 %. Congress took over an Indian Economy growing at 8 % every year and after five years; we are just a step away from being rated as a ‘Junk status’ under the current policies and misrule with growth numbers less than half of what we had in 2004.

Current policies led to unchecked inflation. Even we are not sure, whether the low inflation numbers we see today are correct or cooked up. Economy is sliding day by day. Companies are getting into voluntary shut downs, expected job losses till March 09 have crossed two crore. Last Election manifesto of Congress reiterated “its firm commitment to eliminating the revenue deficit of the central government in five years time” & actually gave India the worst ever revenue deficit since its independence . According to S&P’s ( Standard & Poor’s ratings ) , India’s fiscal position is unsustainable in the middle term, reduced the outlook on long term debt from stable to negative for four government entities , and , in turn, the UPA government . In the 3rd Week of Feb’ 09, even Fitch ratings had called India’s finances in to question.

Urban Poverty:

According to the ‘India: Urban Poverty Report, 2009’,The poverty in cities is not an overflow of the poverty in villages but has happened because of the faulty nature of urbanization in India, says the country’s first report on Urban Poverty released in Feb,09. According to the study, an estimated 23.7 per cent of the urban population was living in slums amid squalor, crime, disease and tension, but not all slum dwellers exist below the poverty line.
They have been marginalised because of the poor city planning and poorer urban land management and legislation.
The urban poverty was not about only nutritional deficiency but deficiencies in the basic needs of housing, water, sanitation, medical care, education, and opportunity for income generation. As many 81 million or 25.7 per cent people (2004-05) subsist in urban areas on incomes that are below the poverty line. Eighty per cent of their meagre income goes towards paying for food and energy, leaving very little for meeting the cost of living in an increasingly monetised society
Congress Election Manifesto of 2004 quoted ‘The Congress is conscious of the havoc that corruption at all levels ads to the harassment of the common man’.
In fact, sixty years of misrule is a naked, sordid & ruthless saga of Gareebi, Bhrashtachaar and Aantakwaad and not the Roti, Kapda aur Makaan that has just remained a slogan after 60 years of rule.
Overall, the governments have failed on all fronts. What all we see as growth is incremental growth that happens on its own. . We have totally forgotten the sacrifices of our freedom fighters. We are at loss of words to express our anguish to forget Bhagat Singh

, Neta ji and Sardar Patel, Lal Bahadur Shastri, Maulana Azad and others as well who contributed to India’s freedom struggle.
Sixty years of misrule has certainly achieved one thing; ethics has been eroded in politics and no one trusts a politician. Citizens should be committed to change this by participating actively in bringing about this change and creating an India for the common man. Criticism alone does not work; we need a solution oriented approach even from the opposition. We must support the current government. Though, in the current elections and the new government, we don’t have the actual representation of the common man. All that we see as next generation leaders are the second generation leaders of the existing politicians. Though, there have been some bold statements by Rahul Gandhi for reorganising the congress. Which has been unheard of from the Gandhi clan till now, but still we need to see watch closely what Rahul does going forward. It should not remain just rhetoric. I hope that the congress does not repeat the score card that it had in 2004-2009. The good part is that congress has a clear majority to implement the key plans. Following is Congress scorecard based on the last manifesto.
Congress Scorecard 2004-2009.
This is taken from the congress manifesto for 2004-2009. Reality is shocking.
No. Key Result areas What Congress promised in the last Manifesto What it did
1 Agriculture Annual growth of less than 4-4.5 % is unacceptable Agriculture Growth in Q3 2008-09 is Negative -2.2 %
2 Intensive agricultural development program Should be started in 100 districts ???
3 Farmers insurance Farm insurance schemes for both crops and cattle Should be implemented ???
4 Employment Accelerate employment Generation More than 2 Crores jobs lost till March 2009
5 Fiscal Policy Committed to eliminating the revenue deficit of central govt. By 2009 In Feb 09, the revenue deficit reached at 11.4 % , highest ever since Independence
6 Growth Growth of below 10 % in industry is simply unacceptable Growth figures in Q3 2008-09 was around 5.3 %
7 Education To spend 6 % of GDP and set up Education Development Finance Corporation ???
8 Khadi & Village Industries to be modernised ???
9 Block level Establish at least one industrial training institute in each development block of the country ???
10 Annual Rozgar report To be released every 1st May ???
11 A great thrust on Exports of textiles , handicrafts , Gems & Jewellery , leather , software & engineering Painful slowdown in all this sectors and the government is clueless on what to do? Units are shutting down and much more than one crore people are expected to be out of Job by March end in these sectors
12 Farm labour Ensure the fullest implementation of wage laws for farm labour ???
13 Landless Congress to Redouble its efforts to distribute surplus productive land to the landless ???
14 Women Congress pledges to press for the constitutional amendment to reserve one third of seats in Lok Sabha and in Vidhan Sabha’s for Women ???
15 Healthcare Congress Should raise public spending on healthcare to at least 2-3 % of GDP ???
16 Reservation Congress pledges to extend reservations for the economically deprived persons belonging to communities that are at present not entitled to such reservations ???
17 Weavers & artisans New middle level technical institutions Should be started in places where for example weavers and artisans are concentrated ???
18 Food scarce areas Grain Banks in chronically food scarce areas Should be started ???
19 Girl Child Nutrition program for the girl child particularly Should be expanded on a significant scale ???
20 Organised , Informal & Unorganised sector
Urban Poor Every initiative Should must and Should be taken to expand the proportion of employment in the organised sector, congress Should ensure the well being and welfare of all workers in unorganized sector Only job losses have been reported in the last few years in all these sectors and Congress has remained a silent spectator
21 Congress to establish a National Commission to examine problems facing enterprises operating in the unorganised sector ???

22 A national fund Should be created ???
23 A single , simplified law Should be enacted to set out the obligations of these enterprises to labour and for safety ???
24 Congress Should create legal space in towns and cities for hawkers , vendors , food sellers etc……so that they are spared the risk of extortion , eviction, confiscation and harassment ???
25 Social housing schemes Should be launched to meet the needs of the urban poor ???
26 Security of the nation Congress Should strengthen the intelligence network Most gruesome 19 attacks. A record of 63 blasts in 35 days. Assam, Oct 30, 2008 – 63 people killed, Imphal , Oct 21, 2008 – 17 people killed , New Delhi, Sept 13 , 2008- 26 people killed, New Delhi, Sept 27, 2008 – Three people Killed , Ahmedabad , July 26, 2008 – 57 people killed after 20 bombs went off in two hours, Bangalore , July 25, 2008 – One person killed, Jaipur, May 13, 2008 – 68 people killed in serial bombings, Faizabad , November 23, 2007- 15 people killed in Court bombings, Hyderabad , August 25,2007- 42 people killed in two blasts, Samjhauta Express , Feb 19, 2007- 66 people killed , Malegaon , Sept 8, 2006- 40 people killed in two blasts, Mumbai , July 11, 2006 – 209 people killed in seven blasts on sub-urban trains – the lifeline of Mumbai , Varanasi , March 7, 2006- 21 people killed in three blasts including one at the temple and another at the crowded railway station, New Delhi, Oct 29, 2005- 61 people killed in three blasts on the eve of Diwali

27 Judiciary Immediate measures Should be taken to drastically cut delays in courts , particularly in the high court’s and in lower levels of judiciary On Feb 6, 2009, the Supreme court said that, the Criminal justice system has collapsed… A Bench comprising Justices B N Agrawal, G S Singhvi and Aftab Alam also said that the lower judiciary had decayed. “The courts of magistrate and munsif have ceased to be an option for the common man,” the Bench said and compared the lower courts to ill-equipped and ill-staffed public health centres (PHCs) in rural areas
28 Manufacturing Sector Congress Should establish a National Manufacturing Competitiveness Council ???
29 Yearly report card – Jan Dastavejh Every year on October 2nd , the congress pledges to present to the people of India a Jan Dastavejh on the progress of the implementation of the manifesto ???
India Today:
India is a land of a billion talented brains. Over the last 62 years, we have proven to the world of our people’s strong determination and capabilities. We are blessed with a rich cultural heritage, natural resources, intellectual capital; world’s best human resources and our ability endure everything & still reach the moon! No wonder, the world looks upon us for the best people. There has been a lack of direction and right atmosphere at home. This has led to brutal crushing of our talent and enormous wastage of our resources. We have contributed to the whole world. But at home, we remain a frustrated population & a struggling nation. Today, we stand at the cross roads to take stock of what did we achieve in the last 62 years of freedom from the foreign rule? Why we were never allowed to flourish and how we can end this?
Time has come: It is the worst crisis ever!
Friends, we can keep hoping things should change and sit back. But honestly, we cannot afford to lose time. We either participate and change or let it go. Time and again, it has been proven that, common man has not participated in nation building via elections. How can 1.03 billion people not wake up when 500+ people are taking them for a ride? Don’t frustrate yourself. Till undemocratic politicians remain at the helm of affairs, nothing can be expected. This is not about an election but our determination to participate and change the nation; it is the question of changing the destiny of this nation going forward. It is not just an appeal to politicians, but to all who wish to see a different India, an India which stands tall above all.
Y-our agenda
All have equally been suffers to the same atrocities and misrule of the political class. Let’s pledge for a better India, a country where a common man has a say, and it addresses the issues that you want to be addressed. This is how we can transform this Nation. All of you are hoping that things will change on their own. But the fact remains, that hope is not a

Strategy. The ruling government will look into this .We say our agenda is nothing but your agenda. Our priority and path is summed up below in YES, REAL Development
Priority areas. (YES) Youth, Economy & Security
(REAL) Development – Rural , Education , Agriculture & Livelihood
Food , Clothing , Clean water and Healthcare for the Common Man
Government needs to immediately attend on our national plan of action to bring about a reform process that starts with addressing the urgent and important issues related to youth, as youth is a ‘Golden Demographic advantage’, with a special focus on empowering women . Women power alone have the strength to change the nation !Putting overall economic development mechanism leading to creating an equitable allocation of resources aimed at creation & distribution of wealth in both rural and urban India , agriculture & non-agriculture , manual & Hi-tech, small scale and large scale industries and aim at security -social , Economic and military ,with the base focus of ensuring Food , Clothing and Healthcare to the common man. The government must earmark 60 % of the plan funds for and effect public investments in REAL development – Rural , Education Agriculture and Livelihood generation .

Economic Development – There is a difference in Economic growth and economic development. Economic growth is purely GDP but economic development is a broader concept that includes not just GDP but also indicators like social justice , income distribution, political freedom, pollution , Equality of income …………GDP captures average national income , but do not reflect how that income is spent.. Even increase in aids and cancer incidences in the country Should add to the GDP expenditure on health services , Also, calamity Should lead to the increase in GDP due to increase in reconstruction activities. Moreover, GDP growth rate is inadequate measure of growth as it is calculated largely on the basis of rate of growth of income of the upper 20-30 % of the population who receive disproportionately large share of income. It calculates only money transactions and leaves many important activities and social measures and conditions like adult literacy rate, life expectancy and HDI rank. The government must move towards transforming the Ministry of finance to economic development so that the real effect of the economic measures can be validated against the goals. There are three sources of growth for an economy, increase in capital, and increase in labour force, and improvement in productivity, Government should impact all the three in its pursuit to make India a stronger nation
Key issues
1. An Equitable, sustainable and stable growth environment needs to be created. The current policies of the government have brought the economy back to its knees.

2. Jobs need to be retained and a massive push is required for employment generation in retail, education, agriculture, Healthcare, infrastructure, Education, technology and tourism sectors on a war footing.
3. IT & BPO sector is under stress , and the current government must create opportunities within the nation to keep up the growth in the sector
4. Vocational training and re-skilling needs to be taken up on war footing to keep the momentum in job generation and growth at all levels in the job hierarchies
5. Agriculture needs new impetus as more than 65 % of our population is dependent on agriculture. More value has to be added to agriculture to increase the productivity and profitability
6. Communication is the key to growth and the government should strive to reduce the tele-communication cost by 90 %.
7. Security of the nation needs a total re-look with a action oriented approach and need to make this system more result oriented and accountable & more freedom be provided to operate without any political interference . A zero-tolerance policy on terrorism should be enacted. Defence forces need a booster.
8. SME sector needs a fresh vigour to make India a developed country. The current government must take all necessary steps to achieve this goal with priority and equal thrust
9. Rural India needs a completely new focus. Despite all tall claims in the last six decades, rural India still remains underserved, underfunded and an outdated system.
10. Judiciary needs to be ramped up to restore faith in the law and order
11. Innovation , entrepreneurship and new emerging opportunities Should be attended in a focussed manner
Solution:
We have failed as a nation. Today the country is facing a severe crisis. People are losing jobs by every hour, faith every kilometre and hope every day. Rising stock market does not raise the GDP of a nation, and this, the leaders must understand. We must do a quick fix for this economy but work out a short term and a long term solution for the economy and society. The mistake every government has done is to address the economic issues without including the social perspective

The detailed road map and action areas are as follows.
Youth and Women empowerment:
• There are 34.8 crore youth in the age group of 15-34 years. Of these, about 10 crore are in the 15-19 years of age. Of these, 7 crore are rural and 3 crore are urban. Of the urban youth, more than one crore are living in large cosmopolitan towns and the more than one crore are living in small town’s less than one lakh. Of the 3 crore urban youths, only 1.3 crore youths have completed their matriculation or higher secondary. These youth need to be guided & incentivised to study and undergo compulsory vocational and on the job learning. They should be a priority area for forming the policy on ‘Earn while you learn’ program.
• Another 24.8 Crore youth are in the economically active age group of 20-34 years. Amongst these 7.6 crore are in urban areas, more than a third of them in small towns of less than one lakh. Only 3.6 crore of the 7.6 crore have studied till matriculation or above. And there are only 1.3 crore graduates. If we count total number of young graduates (Urban & Rural). It should add up to 2 crore.
• These youth of this country are talented and responsible but lack the right guidance, skills and opportunities to tap their potential. The current government must immediately address the issue and how to channelize the power of youth by providing them suitable employment opportunities. Education today is lacking monetary value and the goal would be to ensure that educated people don’t sit idle. Special schemes for women education and empowerment should be launched within six months. Special scholarships aimed at promoting higher education and entrepreneurship in women should be introduced. The government must make the conditions conducive and bring up laws to introduce ‘Earn while you learn’ scheme for employing students to do part time government jobs in shifts.
• The government must work out a policy to allot government tenders wherever feasible, to only unemployed / employed youths limited to running or operating different facilities or housekeeping in government establishments thereby, throwing open 10, 00000 of jobs across to the first timers.
• The hawking zones must be set up with vendors getting legal status to ensure that they have a source of livelihood on prominent public places where the foot falls are high and can create income for people and also serve the public. This should once and for all end corruption and harassment of small business owners. This should create at least 1 crore vendors who can legally earn their livelihood by servicing the needs of the common man in urban and semi urban areas.
• Government must do its best to start reservation in jobs for people from economically weaker sections of the society, eunuchs and especially for orphans. If one is born handicapped or becomes an orphan ,does it mean that government leaves them at the

Mercy of the creator? It is a matter of real shame for the all the governments whether BJP or Congress that no one has taken any steps to give reservation for such children
• Academic and research institutes must also act as incubation centres for meritorious students and , as a norm , Government must make the framework to absorb 1 % of the best brains to be absorbed in the mentoring at the incubation centres. These incubation centres must be funded by the ‘National Innovation & Incubation Bank program’ which should be set up
• Gross enrolment ratio in higher education stands at 11 %. World average is 23 %. Government must put in all efforts to reach the world average in the next four years.
• SHG – Self help groups (Swabhimaan Plan) must be launched in the next six months at the taluka level. Government must form a frame work to organize women self help groups at block level for making them financially independent, and at the same time serve the society by different tie ups from corporates and government. The group must offer services exclusively and not through other channels to ensure success and self sufficiency. The government must create 50,000 SHG’s every year. This should create employment for 1-2 crore women across the country. Same should be applicable to unemployed youth. Government must give a formal legal frame work to SHG’s. A suitable law enabling micro-credit operations and nurturing them to be scaled up must be enacted.
• The government must also encourage & impress upon various corporates and government offices to give special lower rates to students for different products and services which should be 30-50 % lower than the normal market rates like telecom ,hard ware , travel etc.
• Special girls hostels and working women hostels should be established in every town
• Youth hostels should be set up on railway premises which should make cheap accommodation available to students travelling to various towns at actual costs. This Should create employment for 100000 people in the next five years
• 40 Technical institutes especially for women should be set up. 10 in each zone.
• NSS & NCC should be made more broad based & integral part of curricula for people to get involved on a compulsory basis during schooling, understand the rural set up, and also contribute to the development of the same via the NSS / NCC.

Employment Generation from Different initiatives
No. Initiative Total number of jobs generated
1 House-keeping and in house service tenders for youth 10 Lac
2 Legalization of Vendors 1 Crore
3 Self Help Groups for Women 1-2 Crore
4 Youth Hostels 1 Lac
5 Khadi & Village Industries –KVIC
For weavers, Handloom workers etc. 10 Lac direct
50 lac indirect
6 E-Governance , SMART Districts 50 Lac direct
25 Lac indirect
7 SME 2 Crore
8 Government jobs like Police force , Judiciary etc 6 Lac
9 Vocational Training Institutions 1 Lac
10 SOFZ –Special Organic farming & Food processing 10 Lac
11 Local manufacturing units of Global tender suppliers 1 Crore
12 Healthcare 30 Lac Direct
20 Lac Indirect
13 New Townships 25 Lac
15 Tourism 1 crore
16 Energy Sector 10 Lac
17 Yoga , Meditation and Sports centres 1 Lac
18 N.E. Region 5 Lac
19 Cooperative organizations 10 Lac
20 Electricity Meters 10 Lac
21 Post & Telegraph 10 Lac

Organised -Unorganised Sector: According to Sen Gupta report, in 2005, the total employment in Indian economy was 45.7 Crore. Of which, the unorganized sector accounted for 39.5 crore, or 86 percent. This unorganised sector has reduced the poverty by lifting people above the poverty line. The report also mentioned about the socio economic plight of workers from unorganised sectors. Low level of education and poor access to land denies workers access to good jobs in organised sectors.
Commission also found that 40-50 % of the men and 81-87 % of women get wages below the standard minimum wages
The government must commit to radical changes in the handling of this sector that is crucial as we not only need to create more employment opportunities but also create fair payment systems to these 45.7 crore population .
Urbanization of rural areas: This must aim not just to connect rural hinterlands to the urban belts but to provide the basics of urban India all across the country. The goal should be that in the next 10 years, there should be one India and rural world should cease to exist. PURA (Providing Urban Amenities in Rural areas) would be the thrust area of government
• Education, healthcare and infrastructure should be available within every five kilometres across the nation. Clean water and electricity in rural areas should be a top priority. Clean water is a must for rural areas as it causes 80 % of all diseases and ailments.
• Sanitation: 67 % of the rural population and 22 % of urban population has no access to toilets. This should be addressed in the next five years
• Help should be just a call away. The government should set up toll free numbers for connecting with the rural brethren in the times of need. Government must set up Private public partnerships to make this viable model giving the PPP a matchless opportunity in urban and rural India together. Government must evolve a framework so that no urban PPP contract should be allotted without a rural service clause. So urban and rural India should grow together.
• Further, the Golden Corridor project should be completed quickly. Now we need to add a new dimension by identifying and starting townships or economic hubs along the entire corridor

• Khadi and Village Industries Commission (KVIC) movement should be upgraded with better technology and the product portfolio should be extended to increase employment in rural areas. Weaver community, Power loom, hand loom, handicrafts and other untapped opportunities must be added to KVIC that is passing through hard times. Government may issue guidelines to the government staff to buy a quota of the official dresses from Khadi and Gram Udhyog to ensure the profitability of the sector. KVIC must be franchised to educated youth across the country in small and medium formats financed by the National Youth Bank .Handloom exports should be increased from today’s Rs.3000 Cr+ to Rs.10, 000 crore in the next five years. India’s strength in being the largest yarn producer should be innovatively harnessed. ‘Khadi’ as a brand should be globally positioned. All this is likely create employment for 100,0000 youth
Retail trade & Shopkeepers community- Retail is a big employer. According to RAI – Retailer Association of India, the Retail sector is estimated to be Rs.130000000000000.00 (Rs. 13 Lac Crore). There are 12 million retailers in the country. Every 200 Sq.feet of retail space employs one person, Specialty retail employs four people per 100 sq.ft and Hypermarkets employs one person per 300 Sq.ft. and these twelve million retailers actually support at least 8 times the same number in the associated industries like marketing , advertising ,logistics , house-keeping , packaging etc…

• Government must look at giving industry status to retail
• The entire thrust should be to get the best practices from all over the world for making the domestic retailers globally competitive and protect the domestic retailers
• The government must promote modern trade and set up a single window for clearance to ensure smoother functioning of retail. According to a 2003 study, a new shop needed, on average, 15 licenses from 11 government bodies and securing them took an average of six months and cost up to 500,000 rupees.
• Incentives Should be in place to set up world class supply chain infrastructure

In the matter of consumer articles of daily necessity, it is observed that despite adequate supplies available in the States, movement of goods from one state to another is still restricted. This policy, apart from creating artificial scarcity in some States also leads to rise in prices prejudicial to the interest of consumer. Harassment is also caused to traders on account of setup of Check Posts and barriers besides technical formalities of Road Permit and entry forms etc. The government must ensure that there is no barrier to the free movement of goods. System of entry forms & check post should be abolished. Time has come to withdraw, amend or drastically restructure all laws to facilitate smooth inter-state and intra-state trade, which is a prerequisite for a strong domestic market. Formation of ‘Trade Review Commission’ to look into, review and suggest measures to help make the environment conducive to traders and consumers

E-Governance – Today the world over, the public is becoming literate. Mobile phones are becoming the first computer. The mobile connections in India are close to 400 million. The density of mobiles has reached almost 40 %. It is high time that E-governance now converge to the next level in E-Governance. With 3G becoming a reality, the government should move closer to the public.
I believe more the number of offices to visit; more are the opportunity for corruption and bribes. SMART District program should eliminate the harassment of the common man. He / she would not require at all visiting multiple government offices but having a single window nearer to his home
• By issuing digital ID cards and also enable futuristic technologies that can be used to connect to the government departments via mobile and get the basic work done. Why should a citizen visit a government office unless necessary! If at all one needs to, the SMART District kiosks should be the first point to procure all forms, government records etc.
• Government must launch ‘SMART Districts’ program and set up government service kiosks across till the block level. People should go through these kiosks and not to offices to get the work done, so that they don’t even meet the officers, forget paying bribes to get a small certificate.
• These kiosks should only be awarded to economically weaker sections of all societies & unemployed youth. The government must plan to open about 10,000,00 Kiosks in the next 3 years employing at least 50 Lac youths who can read and write . Besides, the setting of the Kiosks should throw open another opportunities for at least 25 lac jobs. IT sector that is passing under a painful period should be used for domestic requirement. So that we can counter global slowdown with inward looking policy. Some of the services like government forms & collection of bills, Photo copy, and fax, STD / ISD should be serviced through these kiosks to ensure relevance and viability. Half of these Kiosks should be exclusively reserved for women. Who might find it convenient to work nearer to their homes?
• E-governance should also make government records digitalised and accessible to citizens without hassles today, people fear treading into a police station or a government office. Mechanism should be set in place to ensure accessibility nearer to the community. All government related permissions and works must become time bound, so that people should not have to wait indefinitely for a petty job to be done in the government office.
SME: Globally SME’s contribute more than 90 % to the manufacturing output in the developed world. In India, it is just 39 % and employ 1.3 crore people.
• The guidelines for units should be re-considered. Eligibility for SME’s should be revised upwards and re-worked to a limit of Rs. 5 Crore or more
• Government must pass strict guidelines to PSU’s to clear the payment due to SME’s within 30 days of the work being done or levy the market interest rates as penalty

• Government must seriously consider that a portion of the store purchases in defence and railways be reserved exclusively for SME’s
• Government must check the feasibility of exemption of earnest money and deposit security for SME when applying for government tenders
• The Government must revisit the criteria to be considered for audit limit as set up in 1984 from Rs.40 lac to Rs. 1 Crore.
• TDS process for SME’s should be revisited and re-looked
• More incentives should be granted for the SME with the goal to make SME sector contribute to more than 75 % of the total manufacturing output in the next 5 years.
• SSI Bases SEZ’s should be considered for every state. More so, near to the ports.
• A separate bank dedicated to serve the needs of SME (National SME Bank) should be considered. Besides introducing a national level institute that should special in SSI education leading to a BBA / MBA in SME.
• The Government must strive to create SME’s employing only women. There should be 25 SME’s in each zone ( North , East , West & South India ) fully funded by the ‘Progressive India venture fund’ set up to promote Women and youth empowerment . . All these efforts from the government Should lead to creation of atleast two crore jobs in the next five years
Police reforms, National Security & Terrorism: Lapses in National security has cost countless lives & we are at the mercy of terrorists today. Lawlessness is a norm and ordinary people to high and mighty are the victims in one form or another. Years ago, Shri Atal Bihari Vajpayee had spoke about the fact, that Terrorism is not limited to geographies. We are under the evil shadow of lawlessness and terrorism and we should have to fight it out and finish it off. I have met up with people personally in North Eastern part of the country. If we fail to take immediate steps, country should be partitioned again soon. Assam is becoming a hot bed of Bangladeshi immigrants. AUDF is getting stronger only banking on Muslim votes of immigrant Bangladeshi’s. This has to end with a stern hand from the center.
It is glaring to note that;
• Last five years witnessed the most gruesome 19 attacks. A record of 63 blasts in 35 days. Assam, Oct 30, 2008 – 63 people killed, Imphal , Oct 21, 2008 – 17 people killed , New Delhi, Sept 13 , 2008- 26 people killed, New Delhi, Sept 27, 2008 – Three people Killed , Ahmedabad , July 26, 2008 – 57 people killed after 20 bombs went off in two hours, Bangalore , July 25, 2008 – One person killed, Jaipur, May 13, 2008 – 68 people killed in serial bombings, Faizabad , November 23, 2007- 15 people killed in Court bombings, Hyderabad , August 25,2007- 42 people killed in two blasts, Samjhauta Express , Feb 19, 2007- 66 people killed , Malegaon , Sept 8, 2006- 40 people killed in two blasts, Mumbai ,

July 11, 2006 – 209 people killed in seven blasts on sub-urban trains – the lifeline of Mumbai, Varanasi, March 7, 2006- 21 people killed in three blasts including one at the temple and another at the crowded railway station, New Delhi, Oct 29, 2005- 61 people killed in three blasts on the eve of Diwali
• The tribunal reviewing the ban on SIMI threw out the Government’s case because of the shoddy preparations and argued half heartedly. This is despite the fact , that SIMI activists have been behind the blasts in India
• Speedy trail of parliament attack was a deterrent to terrorists. There has been a failure of the government in its ability to understand and tackle terrorism.
• Today, India faces multiple threats to internal security from separatists in North East, Jammu & Kashmir; Maoists in 156 districts in 13 states; and Jehadis and terrorist sleeper cells all across the country.
• Prime Minister defined Maoists as the ‘Single largest threat to India’s internal security’. But did nothing beyond that. We need to take them heads on and throw them out.
• There is a strategically planned infiltration of Bangladeshis and Pakistan’s from Bangladesh’s borders.
• There has been no successful prosecution of terrorists in the last five years under the existing laws. On the contrary, Prime Minister equated Pakistan as a victim of terrorism. Whereas, Pakistan is the considered the most notorious nation and the cause and creator of global terrorism. We must declare Pakistan as a terrorist nation. Why wait for USA or UN to do that. We don’t need any proof.
The government must work on the possibility of the half yearly defence review to ensure the security, territorial integrity and unity of India. I mean it, when I say; we must take all necessary steps and exercise all available options in the interest of the nation.
• National security establishment should be well equipped with latest intelligence gathering techniques
• Super surveillance should be set up for checking ‘porous borders’ to avoid infiltration. Fencing of Bangladesh and Pakistan borders or equivalent measures should be taken
• NSG should be stationed in four zones in the country with their own fleet to reach any spot within 3 hours across the nation
• Special toll free number 2611 should be dedicated for complaints and information relation to terrorist activities. 2611 is in the memory of attacks that happened at Mumbai on 26 /11/08

• Special courts should be set up to try cases related to terrorism. Parliament attack convict should be hanged immediately
• The government must pledge to enact stringent legislation to combat terrorism. The New anti-terrorism act must incorporate measures recommended by the recent Administrative Reforms Commission and U.N. Resolution no.1373 on the subject
• The government must take effective steps for scrutiny, detection and repatriation of all illegal migrants from the country
• Defence must be re-looked and reinvigorated with a new vision. The goal should be to make India develop its own defence R&D and manufacturing capabilities and reduce the dependence on foreign procurement.
• By 2030, India should not procure rather supply arms and ammunitions to the world at cheapest prices. The automatic surveillance systems would be installed on all borders. India Should start the R&D center at Futuristic Weapon technology institute
The government must take all measures to ensure a better functioning of the police force & National security. Today, India has one police personnel for every 10,000 population this needs to be attended as it is crucial for a safe society and prerequisite to economic development.
• Police and armed forces should be equipped with latest ammunitions
• IT enabled, citizen centric police system should be put in place in the next two years. One of the ways it can change your experience is, that you can register a complaint anywhere and get it transferred online to the area of its jurisdiction automatically – Why should the victim run from pillar to post to lodge an FIR just to figure out the area of jurisdiction for registering an FIR? Functional and infrastructure reforms should be done ASAP
• National biometric Identity cards should l be issued to avoid infiltration and check extremists
• Watch your community program should be initiated at every community level to check any suspicious activities and people.
Education and vocational training. Educational goals should start with the basic premise that every child should go to school, every school must impart meaningful education, and everyone who is educated gets employment. One of the systemic failures has been the collapse of the education system. Once we had the Nalanda’s and Vikramshila’s of the world. Australia has 400,000 foreign students, Dubai has 50,000 and India has 27000! Today, people are going abroad to study. We need to reverse back this trend and start centres on the lines of Nalanda’s and Vikramshila’s again. I believe that six decades after independence is a time gap sufficient to review the educational system. We must re-look and envision the new education system keeping in mind that ‘Education and training is the fundamental right that should not just create employment & income for Indians, but also shape their character’. It is glaring to note that 2/3rd of our universities

And ninety percent of the colleges are said to be functioning at a ‘Below average level’. Further, with regard to the higher education, the National Knowledge Commission in 2006 stated that the participation rate of the population in the age group 18-23 is only around 7 percent. It is far below the developed countries and is only one-half of the average for Asia
• The government must strive its best to raise the level of the education system & appoint a National Commission of Education to formulate the new national policy for Education. Capacity building should be one of its major responsibilities .Today, degrees are being scattered and there is not much value attached to this, the same must be addressed. The Sarva Shiksha Abhiyaan must be strengthened and the Mid-day meal scheme be improvised
• The government must operationalise the constitutional amendment of Education as Fundamental right. The promised allocation of the GDP percentage should be strictly adhered to
• Capacity building should be one major thrust area
• There are 2800 diverse trades in India; each requires sound domain knowledge and good skills. Vocational course loans must be started for students undergoing a vocational training without any guarantee.
• In the next five years, we must set up and upgrade at least 25 world class universities across India. This Should transform our AIIMS to IIMS ( International Institute of Medical Sciences ) , IIM’s to ( International Institute of Management) , IIT’s to IIT’S ( International Institute of Technology ) to raise the bar and position them as Global institutes of excellence and research. We must upgrade the REC’s , RMC’s and Regional Management Institutions to the level of IIT’s , IIM’s & AIIMS to ensure that people don’t have to wait & forego education despite talent due to lack of seats
• The focus should also go beyond IIT / IIM’s. The government must set up four International Institutes of Nano Technology (IINT) one in each zone (north, east, west, and south).
• More importantly, government must set up 100,000 vocational training institutes across the nation and this itself should generate employment opportunities for 1 crore people directly as staff of these training institutes. Provision must be made for certification of skills acquired traditionally or through private initiatives.
• The government must set up National Skills Development Authority to oversee the requirements for various skills in different regions from time to time
• The government must dedicate four International centres of excellence and innovation for low cost technologies in all four zones across the nation.

• Scientists working in all R&D labs must co-own the patents so as to reap the monetary benefits of commercialization of such patents. This Should be a big incentive for getting the scientists back to India
Cultivation & Agriculture (IEC- Irrigation, Electricity & Credit) –
Everything else can wait but not agriculture – Jawaharlal Lal Nehru
Food is an important weapon in our arsenal. We can use it for bargaining – U.S. Under Secretary
I believe that this Nation is a nation of ‘Rishi’ and ‘Krishi’.
Agriculture must remain the basic fundamental of our economic strength and core focus of our plans. More than 80 % of the farms are smaller than 5 acres. Moreover, between 1971 -96 the average size of the farms have reduced from 2.3 to 1.4 acres. The input costs have risen dramatically and the cost of living in rural areas have gone up substantially adding to this, are the high cost of loans thus making agriculture unviable for most the farmers . Agriculture needs to grow at 4 % for the economy to grow at 9 %. Currently, it is under negative growth as per the Q3 2008-09 estimated at – 2 %. I believe that there are four prerequisites for a good yield, profitable prices, availability of Irrigation, Electricity and timely credit besides,
• Currently, Governments investment in agriculture is miniscule 0.5 % of GDP. This must be increased to 5 % over the next five years.
• Agriculture must be supplemented by Seri-Culture, Animal husbandry & Poultry, Fisheries, horticulture, Floriculture, Diary and cattle breeding to enhance the income of farmers. There should be special attention in framing the micro policies for the rural sector empowerment and growth.
• Agricultural profitability needs to be addressed by providing newer techniques, higher yield varieties and new farm practices like organic farming.
• Setting of SOFZ – Special Organic Farming zones on the lines of SEZ. At present only 8000 Organic farming exists in India employing 30000 farmers. World over, the use of organic foods is on the rise. Countries like Europe, North and South America, Finland, Canada, Denmark and Sweden have a great demand for organic food. It is expected, that the world market for Organic food would be between 35-40 Billion US Dollars (175000 -200000 Crore rupees). The Organic farming revolution has to spread swiftly and the government must set up a special Task force to oversee the growth of organic farming. The processed organic foods , Should provide employment to atleast 100,0000 people
• MSP- Minimum Support Price for agriculture produce must be fixed on as recommended by the National Farmer’s Commission .i.e. 50 % profit over the cost of production. But this

Should not be the right approach, unless the correct parameters for fixing the cost of production are arrived at like the notional cost of land, labour, opportunity loss.
• Direct Selling direct to customers to get better price for their yield
• Food processing of the agriculture produce. Today food processing is below 3 % of the value of our agriculture produce. The action plan must be set up in place to increase this to 10 percent within 5 years. This should lead to the creation of another 25 lac jobs. The foremost task of food processing in India is to reduce the distance between production and processing points.
• Farm credit based on average yield for five years need to be worked out and rolled out at the earliest.
• Focussed steps must be taken to better irrigation facilities and promote rain water harvesting at every Panchayat level.
• Nationwide irrigation program ‘varsha’ must be launched
• A “National Farmers and Micro credit bank” must be established to cater to the needs of Agriculture sector should be set up.
• A technology up gradation team should be set up with concrete time bound goals to bring modern farming and food processing techniques to India and spread them all across for increasing the output and decrease loss of crops.
• Agriculture and food processing ministry must be merged into one.
• A case study approach should be the responsibility of the government to improve the conditions in the sector.
• The union government must set up a National Agriculture Improvement Centre with branches in all five zones to cater to the farmers for their specific issues.
• The farmer’s development council must be set up in each state with set goals for improvement and implementation of plans.
• Farmers must be connected to technology & cold storage hubs for easy access of information
• Plan would be in place to give credit to farmers based on the credit rating based on the last five years produce. This should be simple and transparent process.
• The small farmers should be entitled to interest free credit for one year.

• For irrigation the government must launch ‘More crops per drop’ campaign to encourage drip irrigation to increase the yield per hectare.
• SHG should be extended to the female members of the farmer’s family to increase the income of the family.
• Each district should have a Chief Agriculture & Irrigation officer to oversee and proactively support the farmers in the district.
• Agriculture focus should be micro managed with special departments under the ministry to oversee , vegetable production, cash crops, Wheat and rice, Pulses, organic farming , Agro food processing
• Agriculture labourers need to be paid on hourly basis
• The government must create in four regions special zones for manufacturing Agriculture implements. For implements not manufactured in India , they can be imported without duty
• Coconut, Palm, Coir and rubber boards should be established in Tamilnadu and Assam.
• Namakkal is the main center in Tamilnadu for supply of Eggs to other states and foreign markets. A central Poultry research center should be established in Namakkal.
• National River interlinking project can only address the issue of floods and draught and the government must implement it without fail so that the dependence on weather Gods becomes a little less.
Transport: India needs cheaper, faster and safer connectivity to smaller towns and between smaller towns to bigger towns. Students, women cannot be travelling with the office goers and vice versa.
• Government must ensure that women, students & office goers have separate buses and trains in towns where and when they need most. The same must apply for handicapped category. The life becomes mechanical spending hours of daily travel in jam packed and suffocating environment. Government must try addressing this issue on priority basis. An average Indian suffers most of the health problems not because of work but because of the poor conditions to travel to work. Government should seriously address this issue to make life and India better. Mumbai locals should be started for students and more ladies special trains should be started. Same should be applicable to other towns
• Government should also work with the state governments on a plan to upgrade the hand cart rickshaws to peddle rickshaws, peddle rickshaws to electric or fuel driven tempos
• Those with old taxis should be given tax breaks and low interest loans to upgrade to fuel efficient cars as taxis. Most of the towns have yellow and black taxis. The government must

Take all possible steps to modernise them for better earning opportunities and comfort of the travellers.
• India needs also needs better airports. But despite newer airports, the congestion has gone up and so have the congestion tax and other taxes and also the risk associated with air accidents. Government must work out better conditions and value for people who spend a lot of money on air travel.
Banking & Finance: is the core to India’s growth story. Government must look to start a few innovative banking initiatives besides strengthening the existing banking and finance sector.
• Government must look at a National Students Bank. Which should be managed majorly by the student’s community and work for providing new opportunities to unleash the creative power of the educated youth and harness the entrepreneurial instincts of students? This bank should work closely with the incubation centres established in various educational and research institutes
• The role of development banks and financial institutions should be enlarged to provide necessary funds for the projects critical to the achieve 8- 10 % growth rate.
• The following new banks Should be set up
No. Bank Sector
1 National Innovation & Incubation Bank Researchers & Entrepreneurs out of Universities and colleges
2 National SME Bank SME
3 National Farmers & Micro Credit Bank Farmers and farm related heads
4 National Students Bank Managed & run by students for their needs

Judiciary. The United Nations Development Program says some 20 million legal cases are pending in India. The High Court in New Delhi is so behind in its work that it could take up to 466 years to clear the enormous backlog, the court’s chief justice said in a damning report that illustrates the decrepitude of India’s judicial system. Chief Justice A.P. Shah of Delhi high court said in the report that “it would take the court approximately 466 years” to clear the pending 2,300 criminal appeals cases alone. Independence of judiciary does not mean that it is not accountable to the people, the ultimate sovereign
• Government should take this as a top priority to enable speedy judicial system by filling all vacant posts within two years of taking over the government.
• The criteria and system of recruitment of judges needs to be changed
• Also, it should attempt its best to ensure the system is overhauled at the earliest possible.
• Digitalization of records should be taken up
• Witness protection plan should be worked out
• Whistleblower bills Should be introduced
• Cases related to political and bureaucratic corruption should be tried on a out of turn basis or special courts should be set up for the same
• Civil and Criminal procedure codes which are over hundred years old should be suitably amended for speedy justice
• Family courts and fast track courts to be increased.
• Alternative dispute redressal mechanisms though Lok Adalats and tribunals must be expanded and strengthened
• Government must ensure that a corpus is created to an amount of Rs.5000 Crores to modernise the infrastructure of court rooms with proper seating arrangement for attendees and lawyers.
• Judicial data should be published every year. This should not only help in reducing delays, but also make the legal system more transparent and accountable to the people, and enhance the image of judiciary in the public eye.
• Government must take all steps to work out a system so that the criminal cases can be disposed within two years and judgement pronounced within two weeks of completion of arguments
• Punishment of economic offence should be made more stringent with imprisonment and exemplary fine
• Jail System should be worked out on ‘top priority’ to prevent over-crowding of Jails
• Judiciary discretion wastes a lot of time. Government should look at introducing guidelines for use of judicial discretion
• For serious offences, the government should work towards speedy justice to restore the faith in the system.
Poverty Alleviation. According to the World Banks release mid 2008, there were 421 million poor below USD 1.25 a day in 1981. Now that number has increased to 456 million in 2005. This clearly shows that the programs of the government have failed to deliver on the socio economic growth. According to several reports, almost 600 million plus people survive on a dollar a day. This is

After 61 years of freedom. The true and sustainable economic development of India is possible when these people become the earning and spending class. No one can stop India that day from becoming an economic super power. I have not seen any government giving a correct solution to create an earning and a spending class out of the 600 million Indians. We can really become a super power if we just focus on this class of people. We need to address the basics
• Government must start programs at the lowest ladder in the society to create self employment opportunities to them and push them out of poverty by providing them FOOD, CLOTHING AND HEALTHCARE. Urban poverty is worse and this is not just an inconvenience to the urban infrastructure but also is a menace to the society, as all evils spring from these slums.
• The government should come out with a time bound policy to phase out slums across India by 2015.
• This must include construction of low cost housing facilities. The government should make laws to make renting easier by providing a strong, simple and easily enforceable legal frame work to protect the interest of both the tenants and the land lords.
New thrust areas for bold actions
Economy of the people, by the people and for the people of this country:
Model envisioned by government must
• Make Indians proud of their products
• Make Indian brands internationally acceptable
• Make India politically and Economically strong so that it can never be ignored in international arena
• Provide adequate levels of consumption
All the programs undertaken by Government Should be guided by one goal,
To provide Food, clean water, Clothing & healthcare for all.
• The Public distribution system must be strengthened to ensure that the people don’t go to bed empty stomach. No matter in which part of the country they stay , they must have access to clean and hygienic drinking water ,
• The khadi and Gram village must be integrated with PDS to provide cheaper garments for all seasons

• Government must work for making primary & secondary healthcare be available within 5 & 10 Kilometres maximum to all across the nation We must be proud of our technology , scientists , competent work force & the Quality of products.
• Government must work towards making this an integral part of all Global tendering processes. Anyone, who qualifies for a tender above 1000 crore needs to have a manufacturing unit in India or set up the plant in India as a precondition to apply for the tender, This is one sure shot way of making India a hub for manufacturing . Also, why we should not derive value locally for the work done for domestic requirements? This Should be passed with taking necessary approvals .This has the potential to create one crore jobs for skilled and educated professionals
Village Republic Scheme (VRS) & BOARD. Till the villages become self sufficient, India can never dream to be a developed nation. This is fundamental to government’s vision. The BOARD (Base organisation for agriculture and rural development) should work alongside Panchayats for making each of the six lac Indian villages self sufficient. The composition of the BOARD Should be of the two local Panchayat members ( One male ,one female ), MLA’s representative , BDO, ASHA, Patwari and two – five members from NSS / NCC / NGO’s / Local Police representative . The BOARD should set the vision and target to make each village self sufficient in every manner in the next three years.
Healthcare – India is sitting on a ticking time bomb when it comes to healthcare. It is now fact the India is infamously moving towards becoming the ‘Diabetic’ and ‘Cardiac’ capital of the world due the highest prevalence of these chronic diseases. Currently ,There is an average of one urban primary health facility for about 150000 urban population, with only 2-4 health workers, There are a total of 22,370 primary health centres functioning across the country, and the shortfall is of 4,833 PHCs, there is a shortage of 2,525 CHCs across the country, 1.5 Lac people get ESRD failure per year. Only 3500 undergo kidney transplants, about 6000 get dialysis, rest die. 2 people die of TB every minute; 1000 every day, 4 million children die due to pneumonia on an annual basis in India, 6 % have access to Ambulance service, and the bed to population ratio is 0.70. Per 1000 population, to reach a 3 bed: 1000 population, India needs 3 lac beds. An average rural Indian walks two Km’s to reach a chemist , 6 Km’s for a blood test and 20 Km’s for a hospital, almost 25 % of all the drugs sold in India are fake or sub standard.

• The GDP spend on healthcare should be doubled by 2014
• Government must take all the necessary steps within its frame work to logically develop the industry with thrust into reduction of duties / levies on medical equipment
• Bringing pharmaceuticals within the health ministry to ensure proper co-ordination
• Focus on preventive diagnostics and chronic care management & geriatric care. This has the potential to save billions of rupees and millions of lives.
• The focus must be on tele-medicine and tele-diagnostics

• Increase rebate on preventive care and not just on health insurance to really benefit the stake holders in the continuum of care. All working class people are entitled to rebate of Rs.15000 for expenses towards medical insurance. The same should be increased to Rs.10, 000 for preventive check-ups and Rs.15000 for medical insurance. This is one major incentive for healthcare sector to grow at a faster rate, and will make it worthwhile for people to invest in the healthcare sector
• I believe that one of the critical areas that need attention is saving lives by Organ transplants. We intend to set up 100 organ transplant centers across the country and start a national registry for donors with proper incentives. 78000 people die on road accidents every year. Even if 25 % donated the organs. It would be a death leading to birth of someone; means adding a new life to someone who needs an eye, liver, heart, kidney transplant. This should be covered under ‘Rebirth’ program started by Government with a lot of incentive to donors
• Healthcare along the roadways and air ambulance services should start for rural India where tertiary and emergency care services are not easily accessible.
• Clean water is one of the pre-requisites for good health and the government should implement a time bound scheme to implement clean water scheme in all Panchayats areas.
• India has to have a world class healthcare infrastructure. Government should work towards making primary healthcare at your doorsteps a reality and emergency care at your call.
• In Next five years, government must ensure that people will not have to travel more than 50 KMS for serious illnesses.
• Government should start 100 institutes of nursing across India. There is a shortage of 32 lac nurses and we should strive to fill this gap.
• Government must work for recruiting 100,0000 health workers to spread information about various chronic diseases and help people to keep fit through information , education and communication.
• The government must enter into PPP to set up 100,000 day care centers across India for minor procedures and immunization. All these should be the nodal centers to issue the Electronic health records and for basic preventive checkups.
• Government should also set up 100,000 chronic care centers across the nation to address the issue of chronic care.
• These initiatives should create about 31 Lac direct jobs & 20 lacs jobs associated indirectly for setting the infrastructure in the healthcare sector in the next three to five years.
• Government should enter into PPP for low cost healthcare model to drive healthcare nearer to the people and diseases away from people without compromising on the quality of care.
• FSI – for hospitals, the FSI should be doubled or trebled compared to the commercial property. PPP hospitals must be allowed to build residential and commercial space within its ‘zone’, and appropriate FSI should be allocated for the same

Adopt a child, senior citizen, Village, School & PHC scheme – The society cannot be happy if the senior citizens just depend on government schemes and lead lonely & isolated lives. They also need to spend time and mix with people and contribute to the society with their experience.
• The government should open senior citizens home in every town.
• “Adopt a senior citizen scheme” should give certain relief to the family who adopts a senior citizen. Hopefully, it should bring smile to a senior citizen.
• The same should follow for a child. Government should also set similar schemes for adoption of villages, schools and PHC’s by professionals , industrialists and NGO’s to bring about a revolution at the ground level in the society
Administrative & Governance reforms – Government must initiate a review of the outdated systems and implement the best practices in governance and administration to ensure speed and efficiency of the system and eliminate unnecessary procedures and simplify others. Efficiency, accountability and pro-common man attitude should be hall mark of the administrative system in the years to come.
• The recommendations of the joint consultative group should be implemented without delay & in total
• Civil service system Should be reformed
• New cadre system and modern service code should be adopted to enable professionalism at all levels in the administration. Senior officers Should be suitably empowered to take timely and bold decisions
• Responsibility and accountability Should be fixed for the fulfilment of goals and targets
• Officers should be allowed to work in private sectors. Similarly, lateral entry of talented professionals from private sector at senior levels Should be encouraged
• Objective criteria Should be laid down for use of discretionary powers
• Planning commission Should be reformed and re-organized in light of the changing developmental needs of the country
• Post the Satyam Scam, it has become imperative to strengthen the entire supervisory and regulatory mechanism including SEBI, MCA etc to ensure best practices and fair return to investors. This is also important to keep the faith in the system and for attractive image of the corporate world. , Government should revisit and revise some of the laws related to corporate governance in companies (Both Private and Public) to ensure that the facts are placed before and acted upon. Unless, private companies become more transparent in their

Internal processes and external dealings, scams will keep happening and people will continue losing money, faith and this will adversely impact the image of the corporate world. Needless, to mention that all private companies only become public at one stage. Government should address this issue seriously.
• Government should undertake a review of all the laws and regulations relating to industry so as to free it from bureaucratic control; institute a system that ensures compliance with the law including speedy redressal of the grievances
• Government must abolish the rules providing protection to bureaucracy from enquiry and prosecution for corruption.
• Revamping the municipal system Should be one of the thrust areas for a citizen centric approach

Special abilities – disabled, BPL, Beggars & Destitute – Disabled people constitute 5 % of the country’s population. Destitute and beggars are never a part of any government schemes nor are they covered by the census properly. In an all inclusive growth, all these categories have to be taken care of as the total responsibility of the government
• Government must work out a ‘Real India Plan’ that should take of the special needs of the disabled, BPL, Beggars & Destitute. We understand the plight of these people. Their needs are small but they have tremendous ability & potential to work hard and contribute to their upliftment and growth of this nation’s economy.
• The needs of these special classes of people like transport – food, clothing and healthcare Should be taken care of by the ‘Real India plan’ that Should not only provide them the basics, but also train them to become self sustaining community. When they earn, they would be provided with peddle cycle, carts etc at government subsidized rates. Travel via general class rail would be free for all these card holders.
• Special provision would be made to relocate and train them to places where they can get employed and earn respectfully without relooking into their past or special abilities
Urban infrastructure: I believe that the faulty policies of the ruling governments have created 2-3 towns with best infrastructure and all most all towns do not have even decent roads. Migration is encouraged as the entire focus is towards two or three towns only. Everyone wants to transform Mumbai into Shanghai but no one talks about converting Shahjahnpur , Hardoi , Nampalli or Ballia into Mumbai !!
• On one side we Should create more towns and allow new units to be set up there with long term incentives and

• On the other side, work towards decongestion of over populated downs through well planned measures.
• Government must set the pace for at least 25 new world class towns in India in the next five years so that our next generation does not have to struggle for the daily chores and the job related travel.
• This has the potential to create 25 lac jobs
Tourism – India should achieve the status of being the spiritual capital of the world
• Government must promote this tourism– Cultural or spiritual tourism in addition to medical tourism. This has the potential be the third largest employment & revenue generator after retail and the government should make the best of it.
• Regional centres of tourism should be started in five zones across the country along with institutes to impart specialised education in these sectors. The goal would be, to become a global center for tourism both medical and non-medical. Government should ensure that all hurdles are removed in achieving the goal within the next five years
• Tourism has the potential to create 1 crore jobs in the next five years
Energy & Environment – The Global warming is a Global warning for all of us to get serious about the future of our next generation. We all love our children but we are not blessing them by leaving a healthy environment. Government must take all Steps including drafting of stringent legislation to protect the environment, save it from pollution, degradation and ensure a greener earth. Also, the future of entire economy depends upon the clean and green energy. Government must acknowledge the importance of both and should leave no stone unturned to make Energy and Environment an ‘Urgent & Important’ issues to be addressed
• Advanced institute of green technology should be started
• Afforestation, social forestry and agro- forestry should be started all over India
• Re-cycled product industries should be enjoying special concessions in tax structure.
• Same should apply to solar energy and alternative fuels.
• Electric vehicles should be made tax free and the government should use the best of resources to provide them incentives for growth and profits.
• Ethanol production should be incentivised
• New towers more than 2 storeys should have to be green buildings. Green buildings should be given the necessary fast track clearances within 30 days on priority.

• All the government buildings that can be converted to green buildings should be converted within the next three years. A special Green fund should be set aside for this.
• New buildings should have wind mill or solar panels for passage lights
Energy: With a focus to provide uninterrupted electricity to all parts of the country in the next 10 years. Government should lay an action plan that encompasses the use of nuclear power, wind energy, solar energy, Hydro power, enhanced exploration & Bio fuels to make India self sufficient to meet its power & fuel needs.
• If need be, PPP route should be taken to achieve the goals.
• Smaller dams , Hydro electric plants Should be one of the principles in shaping the vision for power sufficiency
• Government should work within the framework and help formulate a policy to replace all the electricity meters across the country to digital meters starting with Metros. The electricity bills should be visual with photo to avoid tempering with the bills. Only youths should be employed to take the meter readings. This Should throw open opportunities for at least 10 lac jobs
Loans & Housing – This sector needs serious actions from the government in terms of more number of houses to be built. This sector has a cascading affect on growth because a whole lot of sectors are associated with its growth like this sector employs 25 million people, and associated industries like cement, iron and steel, finance etc taken together employ much more
• Government should pursue the agenda of affordable housing at affordable interest rates that are fixed for the entire duration of the loan tenure to ensure that the common man’s budget does not get hit due to frequent changes in the interest rates
• The government must build a large number of houses for rental purpose only and not for sale to drive the cost of the flats down for the common man
• The government should appoint a housing regulator within one year to protect the interest of the home buyers on the lines of IRDA, TRAI.
• For two wheelers and small cars, the loan rates would be lesser than medium and sedans or SUV’s.
• Corporate loans should be at a reduced rates for SME’s and start ups below 5 years in operations

Goods & Services Tax (GST ) – I believe that the government should ensure that GST is designed and implemented flawlessly, it would ensure that a substantially common , yet cumulatively much bigger tax base for the center and state, so that the center and states Should benefit from a much bigger tax base. I believe in the Ability of the GST – enabled unified pan-India market to reduce burden and produce huge macro-economic dividends – It is estimated that the economic value of GST would be half trillion dollars or half of India’s GDP. This would enhance the buoyancy of the states revenues as well. Today 40 % of the government tax collections in the country go to the states even as centre and states share annual development expenditure in the ratio of 2:3.
• The government Should remove tax and duties on by cycles , peddle rickshaws to enable economically weaker sections to use this as an incentive to grow faster
Yoga , Mediation & Sports (YMS ) – A national YMS promotion task force with a dedicated fund of Rs. 1000 crore Should be set up to promote the same across India in a systematic manner . This has the potential to create one lac jobs & drastically improve the well being of its citizens
Labour laws – According to the Sen Gupta report , ninety one percent of the total work force of around 39 crore is in the unorganised sector .Government s should make labour , both organised and unorganised , an equal and proud partner in the production of the nation’s wealth and in its progress . Laws relating to equal pay for equal work for men and women shall be strictly implemented.
Population Control – The real issue for corruption, lack of good governance and poor economic growth is its huge and ever increasing population. We need to address this issue ASAP. None of the government has focussed on the issue seriously due to vote bank politics. A suitable and judicious mix of incentives and disincentives for population control should be presented early so that national commitment on this critical issue is obtained
• A people’s movement should be launched to realise the goals and targets set in the National Population policy. States lagging behind should be focussed more.
• The Government should introduce a set of non-coercive disincentives for a two child norm, and incentives for a girl child. Two child norm Should be made a qualification , on a prospective basis , for contesting any election
Constitutional & Electoral reforms: The Government should set up a Constitutional reforms commission to review the constitution of India in light of the experience in the past 60 years and to make suitable recommendations
• Government Should introduce necessary electoral reforms on the basis of the recommendation of the Goswami committee so as to deal with glaring issues that might reform the politics and ultimately , the governance of the nation

• Consensus Should be evolved to prevent entry of criminal elements into politics
• Government should seek to work towards raising the standards of parliament and state legislature
• Government should work towards holding the Union & State elections together
• A national institute for training elected representatives Should be established
• Currently, we have the M.P.’s and other representatives based on the census of 1970’s. We must realise that the population has grown tremendously, and we need to increase the number of public representatives based on the 2001 census. Every ten years, we must match the number of representatives to the population ratio. Today each M.P. represents a population of 1.9 million. It is humanly impossible to reach out to such a huge number of residents. So there is a complete disconnect between the representatives and the populace. No wonder, the voters are not enthused to come out and vote. It is not about not being serious about voting, but an average voter does not know his M.P.’s very well. If it is not so, how can you expect one to vote? If need be , we must build a new parliament house to seat the increased number of representatives and same in states for legislative assemblies or use teleconference to do the proceedings . Anyways, both the parties have talked of taking the broad band to villages.
• The salaries of the public representatives should be enhanced as they have a big responsibility on their shoulders. Why should a President, Prime Minister, Ministers and other public representatives not draw salaries better than the corporate world? When they draw 8 figure salaries , then only we will have the best of people drawn to it and people will also question their contribution
• I had raised in 2003 an issue of giving an option ‘None of the above found suitable ‘in the ballot paper. This way, we will be able to incentivise the concerned citizens to come out and vote.
Defence forces: Dignity, status, Respect and attraction of the defence forces has reached the lowest level, with people returning the medals back to the government. Government must recognise the importance of Defence forces and should ensure that they not just treated as security men but the custodians responsible for the safety of the Nation.
• Removing bottle necks that lead to delays in decision making for defence establishment
• On priority, latest arms and ammunitions should be provided to the force.
• Parity in status with other services at appropriate level
• Betterment of career prospects and service conditions of all ranks

• Revamping and strengthening the existing mechanisms to resolve individual and collective problems specially of personnel below officer rank
• One Rank one pension as recommended by successive governments
• Government should commit to make the salaries of defence forces better by giving them additional tax incentives
R&D: The government should encourage and rewards innovation and R&D in all sectors should special incentive for milestones in each and every step. The government should incentivise the regional educational centres to be become the incubation hubs at the institute levels itself. A special fund of 1000 Cr should be set up for this purpose. Scientists should be able to co-own the patents with the institutes to monetise it in case of commercialization of the patent
Income & taxes: The slab for deduction for LTC, Children education and meal vouchers should get enhanced substantially based on the current spends level to give relief to the earning class. Today the meal vouchers and education allowance are not comparable to what the citizens actually pay. Though the government is charging taxes comparable to the United States, but the public services are not even 1/1000 part of what US does for its citizens
Defence technology SEZ: the government should work towards making India as worldwide supplier of defence uniforms, parachutes, small arms, night vision devices and bullet proof material. India already has capabilities for the same
Export Oriented SEZ for wine – India produces world class grapes and wine Industry can be a good revenue earner as there is a great demand for good quality wine worldwide. This can bring in good income for wine orchards, farmers and processing units
North East Region – the problem with the North eastern states is, that the government has failed to understand and act on the needs of these regions. The biggest issue there is that there is no source of employment created for the youth of those states.
• The Government should take all measures within its framework to dedicate special infrastructure and employment plan that can be implemented within the next three years. All this is likely to raise the earning potential of the region many fold and take the region to heights of prosperity.
• Development of communication infrastructure to overcome the constraints of physical distance
• The plan should encompass setting up a North Eastern tourist grid

• Settings up industries which are based on the natural resources of north east like the herbal medicines and bamboo based industries.
• Further IT industry should be given impetus as that can ideally work in hilly areas.
• Setting up small Hydro Electric plants in North East region
• North East has popular traditional folks culture, if marketed well, can drive in a lot of new opportunities. Government is expected to make it happen.
• These efforts Should create 5 lac jobs in North East
National Task force for Animal husbandry, Milk processing, Food processing and fisheries Should be set up with time bound goals to make India amongst the top three producers in the world. The frame work to achieve the goal should be in place within the next three years. This is the best way to increase the earning ability of the rural & coastal India.
Post & Telegraph – Post and Telegraph have a matchless network covering all the pin codes in the country. I believe that post offices present a matchless opportunity to increase services to every nook and corner of the country and to create at least 10 lac jobs via PPP with Telegraphs and posts network. The government should use this opportunity to not only modernise the post offices but also create value for the public and the government with a special focus on rural India
Private Public Partnership – So far, most of the private public partnerships have not done much over a long period of time, we understand that government has limitations but also has the responsibility to deliver on the expectations of people. Government must appoint a PPP Regulator. An autonomous body to identify implement & monitor the PPP. This should ensure a smooth roll out in all sectors
Cooperative Movement – Cooperative movement is crucial for the success of rural economy. I believe that cooperative movement must be radically reformed to make it more relevant at the taluka level to India’s growth story. This has a high employment potential. If property reformed, this can create fresh 10,000.00 jobs across the nation. The cooperative movement is not just limited to milk production, but also to oil and Beedi production
Consumer protection movement Should be strengthened and proactive steps should be taken to protect the interest of consumers. Also, that the consumer protection is not just about products and services
Media & Sting Operations –
Media should be given more teeth. Sting operations must be made legal and a special court should be set up to look into the exposes made out of such operations. The journalists should be given security for ‘high level’ expose

Disaster Management apparatus should be reviewed and strengthened
Common Civil Code. All the parties should be taken into confidence and a common civil code should be adopted.
Backward – BIMARU States: Government must focus on special projects to take the economy & employment to the next level. Though, in the last five years most of the Bimaru states have notched good growth, still a lot needs to be done,
Tribal Development – 7 % of the Indian population is tribal. This needs to be attended with sensitivity and a planned needs to be evolved for their development and getting them into mainstream. Which includes?
• SSI for tribal’s
• Industry based on local natural resources
• Promote tribal and traditional folk
• Special quota in police and armed forces
Wool Production – India is the world’s second largest wool producer. However, the wool industry is by and large at a low level of quality and value realization. An action based time bound plan should be placed in the first year to modernise and expand the wool production
Good Governance:
• The government should review all its commitments and progress every six months and review the same at the public vigilance committees (PVC) appointed at every district / taluka level.
• The public vigilance committees should consist of citizens from all walks of life. This should ensure that we stay committed and on track when it comes to fulfilling in our commitments. The PVC Should serve as a watch dog on our time bound action plan that we Should release on all Priority issues within 30 days of coming to power
Foreign Policy: Government should pay the highest attention, to not only enhance Indian role in international affairs, but should, also, ensure that India’s vital national and security interests are fully projected and protected, so that it can contribute meaningfully to the global community and deal with the challenges of the future and boldly assert its position on key issues. Few contours of the Foreign policy:

• UN- India Should support all efforts at a further democratisation of the UN structure and system and Should pursue to Secure a permanent seat in the UN security council
• Out a more Work closely with G-8 , to bring about a more balanced economic order which would seek to ensure that the current global disorder is overcome at the earliest so that the developing countries in particular , are not disadvantaged any further
• Strengthening the SAARC Process
• China. While the normalising relations with China Should retain and eminent position in foreign policy, it is , at the same time, expected that China too , Should display sensitivity to India’s position on various issues which have plagued our relations over the last 50 years. India also expects China to avoid any future violations of NPT.
• Pakistan: Peace is the precondition to the development of both the countries. Somehow, Pakistan has not been able to convince India on its track record to ensure peace in the region. Government should be supportive of a widening of contacts and ensuring peace and stability in the region, working with Pakistan on resolving land standing and urgent issues in the interest and as per the will of the people of India
• Europe: The EU is a valuable source of technology and investments. Relations with EU should figure prominently in the foreign policy initiatives. We Should do everything possible to further strengthen our relationship , consistent with our national interest
• Strengthen our bond with USA nuclear and seek revision of certain clauses of the Indo-US nuclear deal which adversely impact on India’s nuclear program and profile
• Relations with Russia needs to be further consolidate
• West Asia and North Africa: Government should rejuvenate our old ties and traditional bonds of friendship with the Arab world, as well as intensify our cooperation with the GCC (Gulf Cooperation Council).
• Bangladesh: Government should convince the old neighbour that harbouring N.E. Insurgents and terrorists should be highly counterproductive. A positive response to India on cooperation in the economic filed, including transit, Should be beneficial to both countries. Bangladesh must also pay urgent heed to and extend full cooperation to India to check the illegal influx of Bangladeshis to India in case it is keen to have cordial relations with India

• Sri-Lanka. India supports a united Sri Lanka in which both the communities can realise their aspirations. The India –Sri Lanka agreement of 1987, provides an important & immediate starting point for the peaceful resolution of the problem. We note the successful implementation of FTA and favour an early conclusion of the CEPA ( Comprehensive Economic Partnership Agreement ), to the satisfaction of both the countries
• Nepal: Indo – Nepal relations are age-old and are based on ties of geography, history, culture & religion. These Should be maintained and further reinforced
• Japan and Korea. Both economic as well as political relations with the economic power houses of Asia, namely, Japan and Korea Should be further developed
• Afghanistan. Indio’s relation with Afghanistan has been traditionally close. We Should continue to firmly support the present government in that country , and at the same time , take all steps to further enhance the security around Indian projects and the Indian embassy and consulates in that country
• Iran. We value our strong economic ties so far. These Should be sustained with positive fallouts to the mutual benefit of both countries
• Africa and Latin America. Relations with Africa and Latin America should be enhanced with great vigour. Further groupings like IBSA (India, Brazil and South Africa) should be encouraged to the benefit of all countries concerned. Further cooperation Should also aim at energy self sufficiency
• NRI & PIO’s. The role of NRI’s and PIO’s in the qualitative enhancement of India’s image abroad and their investments in India are warmly acknowledged. They should continue to be accorded high priority.

Recession – Causes and solution – Rajendra Pratap Gupta


India & Recession – Why & When

It is more than one and a half year that we have heard and read about recession , slowing economy, reduction in industrial output , high inflation , negative agricultural growth , voluntary cut in production , lay-offs , reduction in wages , shutting down of companies etc . Prime Minister and other ministers kept assuring that we are a decoupled economy with very ‘strong fundamentals’, and that India will not be affected. In the interim budget they did not give anything as ‘Stimulus’. Suddenly, when Standard and Poor down-graded our economy ratings to one level above ‘Junk status’. Overnight, the government announced a stimulus for the economy, and still keeps saying that, the economy will grow around 7 %. Personally, I am compelled to be optimistic, as I can’t afford to see my colleagues losing jobs, factories shutting down, people dying of hunger. A country with a billion populations fights a blame game. Government will finally put it on the global crises. But India was supposed to be a self reliant economy? Right? So are we saying we are beggars to the world and when the world goes belly up we will be reduced to what we are? Shame on the politicians who are liars of the highest order and distorting facts

There are five big questions that need answers from all of us and not just the government whom we have voted to power. These questions are related to the so called recession

1. Why it happened
2. Who failed us or who let us down
3. Where are we today
4. What is the solution
5. What we can do to prevent the same

Why it happened?

Congress ruled India for around 50 years .They gave us the infamous license raj, where it was difficult to produce without a license, available only to a select few. Outcome , politicians became rich , corporate houses became richer and the masses in India remained poor. When it came to voting, it was easy to ‘Influence’ and ‘Buy’ votes by offering ‘Daaru’ and ‘Sarees and cycles’. 70 % of the population lives in villages and they are the people who count when it comes to voting, and not people like you and me who read these blogs are merely 40 million in a population of over 1000 million?

In the 1990’s, our economy’s balance of payments situation became worse and Manmohan devaluated the currency twice and opened the economy to the foreign sector. After that, there was no looking back. Our immediate problem was solved but long term problems started. We started measuring our economic strength in the foreign exchange reserves in the country. These foreign investors also got into the stock market. Over the years, we got a very high Sensex- 21000. WOW!

As a result, Mukesh Ambani became the richest man in the world (albeit for a few days!!).

Just a few Indians who left the Indian shores for abroad and made it big ( V.S.Naipaul, Amartya Sen , Indira Nooyi , Arun Sarin etc..) or Arcelor , Tetley, Land Rover & Jaguar , or Corus acquisitions . These were merely aberrations. In India, where 16 % of the world populations reside, why do we not have 16 % of the top executives and 16 % of the top class firms in every sector? So these achievements were not a part of the Indian government’s plan or strategy. Clearly, these were a few aberrations and we arrogated them to India coming of an age. If you are asked about five top Indian names in the global corporate sector, you would find it difficult to reach the number. If you were asked to name five Indian fortune 500 companies, you would start looking at the wall. Is this what a land of billion minds should have produced? So we went wrong in our human resources management

We measured India with how many contracts Infosys or Wipro’s signed in Europe and India, how many call centers started serving US and European clients, and how many dollars got invested into India.

On the other hand , Ambani’s , Birla’s & Tata’s were looking at these ‘News’ and assuming that the entire India is growing fast . The reports that Indian government churns out is nothing but a bunch of information that government wants the public to know ,so that the government remains in the good books of the public and makes it win the elections and give it another term.

While Manmohan had opened the economy, he did nothing for farmers or small scale industries or BPL people. The result, we created a huge disparity in the income generation and spread. This was the sowing of seeds for a long term economic failure that our economy is facing today. Ideally, 25 out of the 100 richest people should have been from India, 100 of the fortune 500 companies should have been from India and 50 % of all patents should have been from India. Our billion plus population is for a mere statistics. Actually, our effective population is not more than 150 million. Rest is mere numbers or rather they have been just treated as numbers. I recall a definition of a politician ‘One who promises to protect rich from the poor and poor from the rich on the pretext of extracting money from the rich and votes from both’

Who failed us ?

Government did not fail alone. Media, in my belief, which is the teacher of modern society failed by selling its ethics and focusing on yellow journalism. Most of the top journalists are known to enjoy privileges and selling their conscience to others and write what their ‘Actual employers’ pay.

Judiciary: I read a day before yesterday a judge having said that, they should not equate to politicians & judges should not be asked to disclose their assets. SHAME ON YOU MR. Judge. Hopeless is a charitable word to describe judiciary in India . All the pillars of democracy have failed as judiciary is corrupt to an extent of over 90 %. Can you imagine the rot when a judge issued the summons to the President of India, Dr.A.P.J.Abdul Kalam? What worse can you imagine? If the president can be a victim of this inefficient judiciary what can a common man expect? If the judges have any shame they must quit en masse! You are a bunch of corrupt and inefficient people on the tax payer’s money and you don’t want to disclose your assets? Why the hell you want to keep them secret? Tell me a reasonable cause

Could you not try cases related to political corruption on priority things would have been different. But these greedy judges are not worth trusting for any worthwhile things for a suo moto action. They just keep passing judgments that gives them publicity.

No one trusts the government; everyone fears the judiciary and enforcement agencies. In all, the system has failed to deliver. I am not commenting the education and healthcare system as they don’t exists in the country

In all, I believe that our education system & more importantly teachers, media and judiciary have failed and delivered a fatal blow to our democracy

Teachers should be blamed for not being able to inculcate values amongst the students

Where are we?

A country is as strong as its citizens. When more than 80 % of the people are struggling to earn a two meals a day even after 61 years of Independence, have we gone the right way?

We are today in midst of two serious crises. One is the economic crises and the other is political crises.

Economic crisis can further be divided into two.

First, the one that has resulted into wrong economic policies blindly focused on FDI inflow and on making India a body shopping country. Also that, Indian government did not focus on developing the agriculture, infrastructure, SME, Retail & research based education. This had created a ‘Big economic divide’. Our politicians did not realise that the capacity building that could have resulted on building these sectors could have catapulted India to a different growth trajectory in the last two decades.

Second is the one that has been due to FDI, stock markets and the so called retail revolution. This was limited to about 35 towns directly and indirectly this gave employment to a lot of rural migrants. Knowing well that, most of agricultural families also depend on the members that work in towns and send money back home. These people have been affected due to reality and retail sector that is slowing down. All these are having a cascading effect.

Most important : Every one , right from the Reserve Bank governor to PM says that the worst is yet to come but they don’t tell what is the worst and when it will come and what is the solution ? It is like an astrologer telling you that you will die. Everyone dies one day , so what big a deal to tell that ? One should be able to tell when and how will you die .

I believe that , We are actually nearing the mid of recession cycle, and we will come of it in another year and a half.

Political crises: For more than 50 years, our country has been ruled by Gandhi family – A family of Kashmiri Pandits. This is enough to understand their commitment.

Who took the Kashmir issue to UN? Jawaharlal Lal Nehru, and we blame Pakistan for internationalizing the issue? Learn history

Congress lead by Gandhi’s has created a vicious cycle. Even today, Sonia Gandhi is the Chairperson of UPA, constitutionally authorized to oversee the implementation of CMP. Why these dual centers of power? Ideally, the Prime Minister’s role should not have been decimated. Why in the first place this extra authority created? Gandhi’s love for power is not hidden and they will keep away anyone who comes in their way. Gandhi’s have never allowed anyone to be number one in the party or politics. Whether it was Sharad Pawar or anyone else. No matter what. Also, that they have paid the price for this? What the Gandhi family is doing is against the law of nature. Power is like sand being held in the fist. The more you tighten the fist, more the sand will flow out. I would not be shocked if the family suffers a few adversaries in the times to come. They have always paid the price for their misconduct and the country had paid more …………………..Till the country gets rid of this family in politics, nothing can change.

Also, every Indian citizen has failed by not being active in politics and just making politics a tea table and road side discussion item. It is such a serious issue and has been treated casually by the Indian population.

What is the solution?

Complex problems have simple solutions – Read my earlier blog – An open letter to the PM.

Economic crisis has a political solution and political crises have an Economic solution.

First thing that needs to be done is to cut interest and lending rates in one shot and not in installments. I have been telling our PM since last year that we don’t need ‘Baby steps’, we need firm and drastic measures

Secondly, we must announce massive investments in infrastructure, Education & Research and IT (Government should set at least 100,000 IT kiosks as Government’s touch points for public access). The work should be given to IT companies of small and medium scale to retain the young IT talent.

FDI In retail should be discouraged and stopped immediately. We need an Indian version of FDI – Finance from domestic institutions.

Agriculture should be given a big push with incentives for organic farming & cash crops. According to NSS (National sample survey), even if one works for a day in a field, he is a farmer!! Which inflates the number of farmers in the country?

Five sectors can relieve India of its miseries; Infrastructure, Agriculture, Education, Retail & IT. Fortunately, we are at a nascent stage in every major sector . Be it agriculture , SME, Retail , IT , Automobiles, industrial growth , urbanization etc . In the US , the problems are of plenty , saturation & wastage . We are just at the reverse . Whilst US might find it difficult to protect and grow , we can log on to a massive growth with the right initiatives . Infact, India and US are at the two extreme ends of the growth cycle. All sectors in India have a potential for phenomenal growth. The 800 million Indians have to be made earning class and a spending class, and this one thing will take India to a 10 % + growth for the next twenty five years . We have a long way to go . Right governance can help us . NREGA Is not the right solution for a long term growth

Where will money come from?

What do you do when your family gets into financial problems? You sell a part of your assets for temporary relief and buy them back or buy better things in the good times or when the financial condition improves

India needs to re-look at the ‘Navratnas’ and dilute the equity and follow a moderate privatization drive to raise money to invest in the five sectors mentioned above. This is the way India can come out of the recession faster and build an economy with 8-10 % GDP growth every year or more.

India’s parallel economy is much bigger than the economy of taxes ( Black money economy is for sure a lot bigger than our 1000 Bn USD economy ). This money needs to be brought back and invested . I am not at all mentioning the money hoarded in Swiss banks and other heavens. All this can solve India’s problems today evening. This is a must , if we want to build an economy based on solid Economic and social foundation.

Lay-offs are one part of the problem what about the fresher’s who are struggling for jobs. We need to create more job opportunities. No one seems to be addressing the issue knowing well that, we will have more 10 crore people who will get hunting for jobs in the next 5 -10 years

Defence spending should be cut and the same be invested in infrastructure. The defence strategy should be re-looked and reworked

All tenders for house-keeping, parking stands, vendors in public places and railways etc………should be reserved for both educated and uneducated youth irrespective of caste but on financial background

We must have guidelines where we build economy on 40 % services, 50 % manufacturing and 10 % on global trade. We must never exceed exports more than 10 % of our GDP

Need driven services never go slow or out of business? Indian economy must be ‘inward looking’ and should be build on essential services and these should not be imported. All the national demand should be met by domestic producers. Need driven sectors like agriculture , FMCG, Healthcare ,textiles , processed food , Education , Oil and natural gas should be country centric and needs more thrust for explosive growth .

Any tender worth 500 Crores or more should not be allotted to bidders who have a manufacturing outside India. This will increase capacity building within the country

Seeing that it is recession time, the EMI of housing and vehicle loans for people who have lost jobs should be adjusted for at least two years. If the loans of 65000 crore can be waived for an income class that does not pay income tax (farmers). Why not give a moratorium on payments for the income class that pays tax. The two years EMI that are deferred for payments should have the interest based on the PLR or at reduced rates.

Every Indian needs to spend 10 minutes a day for politics and community work – An hour a week. Go start a neighborhood-nation building programme to ensure good governance. Rest I will add in my next blog

There are three sources of growth for an economy, increase in capital, and increase in labour force, and improvement in productivity. We will have to address all three

There is a difference in Economic growth and economic development. Economic growth is purely GDP but economic development is a broader concept that includes not just GDP but also indicators like social justice , income distribution, political freedom, pollution , Equality of income …………GDP captures average national income , but do not reflect how that income is spent.. Even increase in aids and cancer incidences in the country will add to the GDP expenditure on health services , Also, calamity will lead to the increase in GDP due to increase in reconstruction activities.

Moreover, GDP growth rate is inadequate measure of growth as it is calculated largely on the basis of rate of growth of income of the upper 20-30 % of the population who receive disproportionately large share of income. It calculates only money transactions and leaves many important activities and social measures and conditions like adult literacy rate, life expectancy and HDI rank

We must change our economic measurement methods from Economic growth to economic development

India needs to re-look into the growth measurement model. We have a solution for economic crises. We need to act fast and grow faster. Rest in my next blog

Good luck

Rajendra Pratap Gupta
President
Country First
Mobile:
India + 91 9323109456
Email: President@countryfirst.org / mail@rajendragupta.org
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http://www.linkedin.com/in/rajendragupta

Third World War is on- Rajendra Pratap Gupta


Actual GDP growth around 4 % ? – Rajendra Pratap Gupta

According to the Ministry of Commerce & Industry provisional data released on 6th March 09.

Core growth shrinks to 1.4 % in Jan 09.

The growth of six infrastructure industries – crude , oil , refinery products, coal , power , cement and finished steel –slumped to 1.4 %. Reflecting India’s decline in consumption and getting deeper into recession. Sector had grown at 3.6 % last year. According to the provisional data released , the crude production & petroleum refinery output slipped into a negative growth in January, recording a fall of 8.1 % and 2.6 %.

Agriculture has already moved to negative growth at -2.2 %

Bad loans jumped by 60 % in the third quarter of 2009 for CANARA Bank . Almost similar is the case with other banks .

Had the sixth pay commission recommendations not been implemented , the growth would have been much lower than 5.3%. Growth would have been lower than 4.3 % for Q3 2008

With the rising unemployment as time passes, we are headed towards creating more NPA’s in the financial sectors. With banks becoming more risk averse , their profitability will suffer, as they wound not make money in lending , and give away interest on deposits and lose on increasing NPA’s via defaults .

Chinese economy is slowing down, and it will affect Indian economy in two ways. One , the exports to China will slow down . Second, the Chinese will dump the goods in India with the closing of Chinese factories

If you thought that the Third world war would be fought with weapons , you were fooling yourself. We are in midst of the third world war . Every part of the world is fighting . But as it would have been , the very definition has changed , we are all resorting to protectionism- Financial world war- This is nothing but the third world war in its new avatar.

We are headed towards a major crisis . Time to act fast ………..

Rajendra Pratap Gupta

E-mail : rajendra.india@gmail.com

Indian Government is clueless about the Economic Crisis – Rajendra Pratap Gupta


India is clueless about how to resolve the current economic crisis?
For over a year, the world has been sliding into the grip of recession. First it was America, then Europe and now Japan. It was naive of our Harvard and Oxford educated FM & PM to keep denying that India would not be affected from the crisis. They kept shouting that India was fundamentally strong and that the crisis would not impact the Indian economy. Even after issuing a ‘Token Bailout’ package the Congress government believed India was better compared to the rest of the crisis affected economies. But of late, congress has accepted the fact that 2009 would be worse.
The height of irresponsibility and lack of knowledge is evident from the fact that Indian Government also did what America was doing i.e. issue a bailout package. India should have acted differently. But why apply brains? Just copy what USA is doing – copying others is the biggest folly of our selfish and mindless politicians !! Way back in August 2008, i wrote for Financial Express supplement – SME World about the impending crisis. This article got published in November 08 issue of the magazine (download the original article from http://www.rajendra.collectivex.com ). But the contents were very much available on my blogs much earlier. I had clearly mentioned that the crisis in India started much earlier and the government was a silent spectator. It did nothing to correct it. Now it is acting posthumously. The moment banks started hiring recovery agents , the crisis has started. After all , banks don’t hire recovery agent for small NPA’s.
I see quite a few reasons for this illogical and irresponsible bailout step. Why should bailout be avoided and what did the current government to the economy. Listing a few view points
• Indian government and our foreign educated PM & FM are totally clueless about the crisis , so leave alone management of the crisis
• They quickly hired foreign experts in their advisory council. Irony is that these foreign experts have rarely stayed in India and know little about the realities on the ground. Adding to this , they had the so called Knowledge commission , P.M’s advisory council, Economic advisory council and many such sinecure posts to keep the sycophants and power hungry corrupt people on benches on our tax payers money
• Political compulsions & uncertainty keep the government & the public guessing for the future moves and the markets will never gather momentum
• Real issues have not been addressed so far, and i don’t see any signs of revival in the economy with such an irrelevant approach to this crisis which will worsen with time passing
Now let’s examine what the government is doing:
• Pumping more liquidity in the banking system
• Decreasing interest rates
• Announcing sops for exporters
• Announcing increase in NREGA scheme
• Making tall statements of strong fundamentals etc…..
Now let’s see what each of the above mentioned steps would lead to:
• Putting more liquidity in the system. But Indian financial system was never cash strapped, Banks were growing very well. We have enough of money available! Now, the bank and financial institutions are becoming risk averse. Who trusts these crooked politicians? If the banks dole out loans and they turn out to be NPA’s. Manmohan and PC Would be gone by then , and the poor branch manager or the M.D. of the bank will become the scapegoat. So in as much as these measures are announced with much fanfare, the implementation is poor. No one is trusting each other. It is a ‘crisis of lack of trust and transparency in our System’. PM can increase liquidity by repo rate cut, but he cannot force the local branch manager of State Bank of India to start lending tomorrow from 9.30 AM till 5.30 P.M. Imagine, even if this was a reality. Would you and i take this loan? For what & Why? We are concerned about the uncertainty of income and job. Liquidity in the system is not the remedy, right? So clearly, government is not taking the right step as it does not know or acknowledge the problem in reality. Today, even corporates like TATA are finding it difficult to raise money. Let’s see why? TATA’s went overboard, and brought big businesses abroad for billions of dollars, and mostly, in all cash deals!! Wrong strategy? When they brought these companies, the stock markets were racing around 20000. Their stocks were really valuable. Had they done a cash and stock deal for all its acquisitions, they would have been better off even when the markets tanked. Now for the price they brought Land Rover and Jaguar, they could have bargained to buy the entire company!!! Any ways, the companies that owned these brands are fast becoming history or getting bailouts and kind of getting nationalised or filing for bankruptcy. Same is the case with Arcelor Mittal. What a deal it was. Now the question is, was it structured in the right manner?? Wait for another quarter, Iconic Ambani’s are likely to tell a similar story. Indian systemic corruption has created mammoth business houses, and the future of this natural imbalance is a foregone conclusion. It was just a coincidence that Satyam got caught. No big corporate can exist without political patronage, and this political patronage comes at a price in cash and with moral flexibility . Satyam is just the tip of the Iceberg. Each and every corporate has shady spots somewhere or the other. Difference is that they have not been caught like Satyam.
• Lowering interest rates: Still the loan port folio of financial institutions is not increasing. Reason , people believe that companies due to drop in sales going forward, and increasing inventory pile up, will dole out better discounts and so are deferring the buying decisions, till the prices drop further. The recession has taught people that, cash in hand is better than ‘Notional money’ in real estate etc…. People are pretty sure that times ahead will not be easy. Assume for a while that, even if the corporates go for taking a loan and increasing the production. Who will bring the buyers? People are in no mood for discretionary spending. All in all, lowering interest rates is also not working in isolation. The problem is totally different and not getting addressed here at all. In today’s tour economy is akin to cycling, either we are peddling or we will fall!
• Announcing Sops for exporters: Suppose, i am an exporter and i am exporting to USA, Europe and Russia. My order books have dried up as the economy is headed for trouble in these countries. Will Sops help me bring orders? Is this not an eye wash for the public? Sops will only work when orders start pouring in. This is again a misfired weapon.
• Announcing increase of funds for NREGA (National rural employment guarantee Scheme) Schemes: This scheme was already in place. We have never been able to quantify the positive impact of this scheme on poverty alleviation. Albeit , our politicians have become richer ! We all know the fake musters made and the amount eaten by the babu’s and ministers. What poor need is not money, but training to earn money consistently. It is like if you feed fish to poor; you can feed him fish a few times, better teaching him how to fish and he can earn for himself every day. How long will NREGA spend our hard earned money on feeding people? This is a misguided and misplaced scheme. What we need is a NYVTS – National Youth Vocational Training Scheme & NRSS – National Re-Skilling scheme – to re-skill and retrain people in better earning vocations and not NREGA. We must create – SEZ’s – Skilled Entrepreneur Zone in every tehsil / district to empower the rural –real India. Still 68 % of the population lives outside urban India. Mind you, urban poor are worse off than rural poor. What schemes are meant for them?

Solution to the Crisis:

Essence of this is that printing & pushing ‘Notional money’ in the system is not the solution. It is an illusionary step. Creation of money by the hands of people is the right solution. How will that happen? I believe that government (Even the US Govt.) should not have resorted to bailouts. If Lehrman Brothers collapsed, it collapsed. So what? Let all the financial institutions and auto majors be left to meet within themselves and come out with a solution. They could have formed a practical consortium to deal with the problem, shared resources and planned a better crisis management. Now each of these corporates will get a bailout package, they will go out on the rampage with cut throat Competition and crisis will aggravate, a few of the bailed out companies will eventually cease to exit. We are just giving a palliative care through bailouts. Competition and collaboration are two ways to save the economy. We need collaboration now. Today the government is patronizing inefficiency and paying the price for poor regulation as bailouts and it will cost it dearly.
Even after the bailout, i fail to understand, how 16 or 25 billion dollars will save General Motors? About a year back , GM had about 30 billion dollar as cash and it was burning billions of dollars every month and finally they fell on the knees.People are not going to buy a Chevy due to the fact that the GM motors has a government bailout plan and package! History was a witness to Enron collapse, World Comm collapse, and IT Sector bust after the boom. Well that’s in a business cycle. All that goes up comes down. If the government wanted to do well. It could definitely take some practical steps like.
• Put a moratorium on corporate , housing and other loan EMI’s for the next 3 years or part payment instead of full EMI’s for the next 2-3 years a nominal interest be added, so that even banks do not suffer loss. But public should be relieved of the burden of payments substantially and immediately
Automobile industry should be happy as the crude oil is cheaper. What the government could do is to step in and make the cab drivers replace taxi’s older than 10 years by a bank loan for 10 years duration at reduced interest rates like 7.5 % for any duration i.e. fixed rate of interest for the entire term of the loan . The duties and other taxes should be cut by 50 % for all the taxi’s that are older than 10 years, by 75 % for vehicles that are more than 5 years to less than 10 year old. Would this not boost both the auto industry and the banks? Also, this would increase collection of the government as road tax. Which could be reduced by a good 50 % for all purchases made in the next three years? It would boost a whole lot of industries associated with Auto , fuel, Iron and steel , rubber , etc …….Make the small car ‘Nano’ and the ‘electric car & scooters’ totally duty free . Any ways, the government collections are down. At least, here it will not lose anything, but only gain as whatever taxes it can collect directly. But indirect collection of taxes will get a boost as a host of activities will increase with this push. It will lead to substantial increase in employment
Business and Real estate : Service tax on rental be abolished , Increase the tax slab for interest payments to Rs.2 lacs, issue home loans at fixed rate of interest from 7 % till 8.5 % for any amount of time . Appoint immediately a Housing regulator to check inflated real estate cost and check the cartelization to keep the prices low. One thing that government can do is that, all buildings under construction and not sold, in those buildings, 70% of the units can be sold and remaining 30 % have to be rented only. Government must construct flats & shops for poor and low income groups for rental occupancy only. This will not only boost the demand but also keep the real estate prices low. The stamp duty and other government charges should be reduced by about 50 %. Any ways, government is not making any money due to poor or nil demand in real estate sector. 50 % taxes would be good enough at this point in time. Even the biggest real estate company by market cap, DLF has reduced the prices of their projects due to poor sales and their prices have dropped by a good 32 % in one of the Bangalore projects. Most of the real estate co’s are abandoning the projects.
Alternative Energy: Wind power and solar power is to be immediately pursued in every house hold, town & district. This can be financed by banks and will lead to a cleaner and greener countryside and improve the economy and generation of power for households and communities
SME: this sector is contributing to just 39 % of the manufacturing output. In developed economies, this sector contributes about 90 % of the manufacturing output. Government needs to push this sector into growth mode by setting up nodal growth centres for SME’s manned by professionals from the corporate world. Setting up incubation centres in major national & regional institutes for providing technical support and professional guidance. For detail steps , read the article that i have recently written for The Financial Times supplement – SME World
Transport & Logistics: Approx 90 % of all the commercial vehicles sold in India is via loans. According to Deepak Sachdeva , President of the Delhi Goods Transport association , between April and December alone, close to 158000 commercial vehicles were repossessed or either surrendered due to loan defaults. This impacts the employment of drivers, helpers and host of other people who run the road side businesses dependent on the truck movements. We need to incentivise these set of people and relieve them from the loan burden with moratorium on EMI payments. Reduce tax on road permits , remove penalty for late payments of EMI for up to 2 years . Octoroi tax must be abolished immediately.
Agriculture: The government needs to push this sector with more reforms and technical innovations considering that more than 80 % of the farms are of small size holdings less than five acres. We need to bring a sigh of relief to these farmers by host of measures
These are just a few of the steps that government can start with. Rest later

Rajendra Pratap Gupta
President
Country First
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Economic forecast for 2009


If the Indian economy grew at 8 -9 % in 2007-8. I must believe that, about half of this came due to intrinsic or local market factors that is about 4 to 4.5 % . So we will continue with that growth with some downward slide in 2009, and also that the remaining half was due to foreign or extrinsic factors. Which i believe, will reduce by a good 50 % . So intrinsic or internal growth will contribute between 3.5 to 4.5 % and remaining 2- 2.5 % will come from the extrinsic factors . So in all , i guess the next year we will witness growth somewhere around 6.0 to 7.0 %. If the World economies shrink badly , which is expected. This might impact this growth a little more and bring it down under 6.0 %

Rajendra Pratap Gupta
President
Countryfirst
Cell : + 91- 9323109456
+ 91- 9867300045
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Indian Economy headed for a severe historic recession


Indian Economy – Getting into worst ever recession ??

It is high time , we acted fast by reducing fuel prices, drastically reducing loan rates and take all possible measures to ease out of a severe recession. Every where, there is a job loss, loss of contract, shrinking consumer spends , production cuts, halting growth plans, adding to this , the recent terror strikes have crippled our already bad travel and aviation sector. We need to convince the consumer that all these steps would be long term. Trust me, we are headed towards a severe recession that will blow out the India story. We don’t need a nuclear deal or a moon mission as a priority today, what We need is ,to keep our feet on our ground. India needs to be pragmatic. This road to recession can be a good turning point for the Indian Economy if used as an opportunity

Why is Indian economy in recession? Indian economy was known as the most intriguing economy for the last three years. There was a lot of hype and hoopla created around the same, everyone wanted to ride the booming India. Some called it the ‘rise of the east’ or ‘a billion under-served customers’. It was the country no one wanted to miss. What happened? What went wrong and why at all?

Firstly, a few things led to a sudden hype. Rise of Infosys and Wipro’s, TATA Tetley acquisition, Arcelor Mittal takeover, Indra Nooyi taking over PepsiCo as CEO, Arun Sarin took over Vodafone etc… This was backed by a lot of media coverage.

Secondly, the triumvirate of Manmohan Singh , P. Chidambaram & Montek Singh talking of a double digit growth excited a lot enthusiasm of politically connected ( and not so politically connected ) business groups to enter into ‘businesses of future’ like infrastructure , power, retail etc… This was based on ‘Big Talk’ of the triumvirate. We all know how many people pumped in money at unrealistic valuations and market was heated up beyond logic, banks were also enjoying the party, share market was expanding like a balloon, manpower was charging anything and still jumping for tempting offers, retail was spotting everywhere. Result: competition became suicidal. Money got pumped into real estate and supply increased and the prices soared. Brands started fighting for space and not profits. Finally, reality was surfacing; growth was not double digits; which the triumvirate shouted for three years. We saw profits were not as projected, corporates were missing numbers, shutting the outlets and man power layoffs. Just forcing Jet airways to take back air hostesses will not cover the reality…………how unfortunate!!!

Thirdly, the ‘Big consulting majors’ were talking in 2007 -8 about the multi-billion dollar markets suddenly growing three fold or four fold by 2012-15. How stupid of CEO’s who believed these news releases of these so called ‘big consulting majors’ and spent millions to buy their reports & finally presented their boards with these rosy projections and raised funds. Now they are shying about the current share prices and valuations (let’s not even talk about growth achievements versus plan or the crazy profits numbers!!!)

All the three factors basically did no good but just created a ‘sexy story’ about a nation like India, where more than 70 % people don’t have access to basic healthcare, only 3 % dabble in stock markets, only 10 towns can boast of a retail revolution, has 36 billionaires and more than 800 million living on about a dollar a day.

Let’s evaluate a little more ……..When people talked of India in 2007 they talked about big IT giants , call centre’s high paying jobs to teen agers, overseas acquisitions of TATA’s & Mittal’s, Mumbai becoming like Shanghai, Big malls coming , dollars flowing as FDI, Big brands coming to India , MNC’s coming to India, ballooning stock markets, BPO’s multi million outsourcing contracts & the great retail revolution. Now with US / Europe in recession and may be, with Barack taking over as the next US President. India will have to take a big hit. We just saw the first wave of negative effects of the US Financial market collapse. India’s stock market crashed almost to a third of its high. With India’s IT / BPO shying and taking to lay off’s, we know the real estate sector would be hit as the entire 2 BHK ( Two bed room , hall & Kitchen ) flat story was built on these young ‘Ripe aged’ employees buying flats at the age of 25-30. Splurging on mobiles and white goods by credit cards …………all this is over (believe me!!)

The hype was more of a story of 36 billionaires , Infosys, TATA, Arcelor, stock market manipulations , FDI and not the story of economic development & and the 800 million population. What we see happening was a foregone conclusion. It was not a ‘bubbling economy’ but an ‘economic bubble’. And it got burst

When the banks started hiring recovery agents, it was the start of the default / delinquency crises (credit card delinquency has gone up to as high as 14 %). Loan defaults would follow shortly and this will be a big blow to the banking / loan system. When the government has to get in to pump in money or the so called confidence, It’s a sure shot sign of crisis or recession or both.

I wish that congress leaders should have thought well before announcing a Rs.60000 crore write off for farmers. This has put a pressure on banks and it will manifest in banking / loan crises. Now imagine, I am a farmer with an Rs.10000 loan for my sister’s marriage or due to a crop failure (trust me, farmers crisis has come due to rise in social costs as much as crop failure). If my loan was waived off what it did to me? Firstly, it gave me nothing to raise a healthy crop and earn for the season so my problem would be standing as such on my head. Has it given me seeds or irrigation which i needed? I could have earned and paid for the loans in the next few years (a moratorium on payments & Interest was more than enough). Moreover, it has set a precedent for me not to pay my loans and hope for future waivers. When politics drives finance, chaos is the only outcome.

Take a cue from USA . They have pumped 700 billion dollars ( India cannot think of even a tenth of this amount in the case of a crises !!! ). This pumping of funds actually helped the banking system in the US and not the economy as people have been made to believe in !

We can knock off any crises if India develops an indigenous model for growth in which technology only becomes the enabler and not the key driver or determinant. What i am pointing is that, we need not depend on FDI totally. When FDI came in, we were roaming the whole world and shouting about it. Now that these economies are under crises, they will take care of their home first, and may even exit from our country as we have seen in the case of FII’s exiting the stock market and leading to a sudden crash. We must have started our economy with 75 % dependence on domestic and 25 % on foreign fund generation besides a host of infrastructure & ground level measures. We need a ‘self reliant India growth model’ and not a USA – Europe dependent-driven growth model. Hope the policy makers will learn from the crises & take steps to correct it.

Now a day’s the most talked about line from the ruling politicians is, that India is fundamentally strong economy. Which ‘Fundamentals’ are they referring to ? Our consumer sentiment is low, stock markets have crashed, industrial production is low , inflation is high, uncertainty is looming over every corporate , retrenchment is happening , rupee is weak against the dollar, farmers that constitute 65-70 % of the population are committing suicides , IT & BPO industry is hit hard due to US –Europe recession, terrorism and lawlessness is rampant. I am still trying to get which fundaments appear to be strong !!! Is it the large suffering population that is being referred to ?

Coming to the most happening sector – The great Indian retail story : I see some retailers having burnt their fingers in metros , now are planning of moving to class II & III towns for the next cycle of growth. Let me express boldly, that this will be a big loss making proposition. In towns like Mumbai and Gurgaon, retailers are having a tough time, how come they will survive in smaller towns with more ‘service class’ & ‘Small time traders’ people. At least , bigger towns have industries and other corporates to support higher spending opportunities. Some learned Advisors have informed these retailers that 70 % of India lives in rural areas so rural India is a bigger market than urban India (calculating that rural India with USD 530 income per capita is three times the population of urban India with the per capita income of USD 1200). What an ‘unintelligent logic’. The 530 USD that the rural India earns is not even enough to spend on basics, unlike urbanites who have the basics already and can afford to spend on the new class of products which supports the modern retail formats. It is analogous to three boys of seven years marrying a girl of eighteen years (3 boys x 7 years = 21 Years, marriageable age!!!). Intelligent logic isn’t!!! That’s what our great retailers are trying to do . Only smart ones are Pantaloon and Wal-mart. Rest all are smart looking idiots !!!

Retailers must realise that they are making investments for 2012-15 market projections. The figures of these projections are not even validated. But the cash burnout is happening now. Imagine this , rentals going up by 5 % every year , salaries by 20-30 % , cash burnout for new openings , increasing offering –SKU’s, reducing margins to attract customers or wash off old inventory. However can a retailer survive ? Adding to this , move to class II towns!!!

Just to make a note that if in towns like Panvel in Navi Mumbai, the two supermarkets owned by Foodland have closed within a year due to opening of ‘MORE’ supermarkets, D’mart & Reliance Fresh stores, how can small kirana stores survive? If i don’t go wrong, even ‘More’ & Reliance will have to shut down in the times to come in the area or make perpetual losses . So the retail story in its current form is not a lasting one. But the lessons are to be learnt . One thing that has happened in India which is totally wrong is that, we have tried to CCP (cut, copy and paste) foreign retailers. But we have missed to note the most important point , that foreign retailers were pretty slow in the first ten years in their country. Even Mukesh Ambani made a strategic mistake; he announced 5 billion dollar investment in retail only to face the back lash from local traders. No one expected seasoned businesses houses to make such tall claims ….This gives us a clear feeling that Indians are unaware and unprepared for the hype that has been created by the media and neither are they guided by the realities . I would call Wal-Mart the smartest retailer in India. They have just done a retail tie up in India without using its brand name . So that the Indian partner has the expense & experience and Wal-mart has the learning’s. Moreover, their growth plans are practical. Just 15 stores now compared to 600 + stores of Reliance and Birla’s. What if the Ambani’s & Birla’s want to change the strategy or make changes backwards because of their learning’s?? It is easier to correct and make changes in 15 stores of Wal-Mart then 600+ stores of Reliance or Birla’s.

We must note:

85 % of the rural India does not have the power to consume very much at the prices that currently prevail in the market.
30 % of urban India constitutes 75 % of the GDP.
70 % of the rural India constitutes 23 % of GDP
According to the Central Statistical organization, in 2001, 48 % of the rural GDP was agricultural.

In 2001, the NDP contributors were: agriculture 46 % , industry 21 % and services 33 %.

If India needs to grow sustainably, we need to make a prudent choice between education, vocational training and SSI. Needless to mention that, India’s growth will be driven by creating more jobs in lowest rungs of the society. They will build the real consumption led growth for a ‘Shining India’. The earlier, the better.

India today is in a recession and we must accept the fact. By closing our eyes the problems will still remain. We must build growth models not based on dollars , stock markets , urban India but go in for holistic models of growth that suit the local conditions and requirements , are broad based for all sections of society and industry , and just don’t reflect isolated figures .

Rajendra Pratap Gupta
President
Countryfirst
Cell : + 91- 9323109456
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E-Mail: mail@rajendragupta.org / rajendragupta@aol.in
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US economy, Recession , terrorism, Economic fundamentals, Barack Obama, Recession in Indian economy, Terrorism , Curruption.