Post-poll surveys have given a picture of the formation of a stable government at the center led by the National Democratic Alliance. It is almost sure that the nation would be administered by a leader with proven track record in the state of Gujarat. Covering lakhs of kilometers for campaigning and connecting with people is a past proposition. What await Mr. Narendra Modi are the aspirations of the unemployed, lack of prospects for entrepreneurs, high price-victim households, and paralyzed economy. Though tough circumstances have in the past as well tested the brain of this proficient leader; tacking the ambitions of millions of Indians would call in for elevated hard work and visionary capabilities. The new government must not forget that post five years of governance; it shall too be evaluated by the then voters.
Ranging from bringing in transparency with respect to auctioning of resources like coal and spectrum to advancing the legislative and technological domains, the nation expects enormous reforms from the new government. Vital to note, UPA inherited an exceptional GDP, which will not be the case with the NDA. The crying GDP of below 5 percent, ever-high fiscal deficit and balance of payments, and restricted earning prospects for the youth will be the key areas of consideration. Mr. Modi has demonstrated in Gujarat that out of box measures deliver expected outcomes if planned and executed in a well-defined manner. Thus, rearrangement of the complete fiscal and economic domain with a view to exploit the opportunities and curb the limitations will be the need of the hour.
Overseas Direct Investment and Foreign Direct Investment can be encouraged, leaving aside the areas wherein such investments can cause troubles. It is to be noted that FDI can bring in the much-awaited prospects of enhanced production means as well as employment. The new government can rethink the duties payable by importers with a view to infusing healthy competition in the domestic market and helping Indian consumers attaining superior-grade goods and services at comparatively low prices. Unorganized employment too is an area of concern. Though such employment trims down the count of unemployed residents; standard of living never boosts up. For instance, youth unable to fetch a salaried job, opts to earn via labor work, which can never uplift the status of living of the Indians.
Another area of concern is the elevating share of the service sector in our GDP. Though India has been the most preferred outsourcing partner of multinational companies since past many years, the more than tolerable share of this sector can mutilate the pillars of the economy. A lesson here has to be learnt from China which has been a hub of manufacturing and is now competing developed nations with hostile outlook. The solution is not to curb the service sector, rather workable and quick reforms have to be instigated for the furtherance of the manufacturing sector. Import of technical know-how, machines, and new techniques of producing must be encouraged with a view to extending competitive edge to domestic producers. Herein, rethinking of the FDI policy can play a vital role.
The pros and cons of the globalization aspect have to be reworked. The new government shall allow extensive bringing in of technology, however imports in sectors like garments can be limited to help domestic producers reap the advantage of available resources. Import of distinctive goods and services has to be reevaluated in light of the detriment caused to domestic producers and workforce. A preferred model can be an assessment in terms of loss of earning prospects for the domestic workforce, and advances in the cost and manner of production. Rather than baselessly following the regulations forced by the WTO, India will have to open new doors and shut those which are prejudicial to the economy. Surely, Mr. Modi and his men will prove talented enough, and will comprehend state of affairs prudently.
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