Dis-Invest our past

Arvind Panagariya blames the socialist educated elites, from leading Indian Institutions of higher learning, sprung up during the previous regime, for India’s current shrunken GDP. He cites “the government attempts to privatise a large number of public sector enterprises, which have remained stalled despite Prime Minister Narendra Modi’s push, to get cabinet approval for the list of companies drawn up by the NITI Aayog”. He goes on to further state that,


“Remarkably, in India even business leaders have played an insignificant role in pushing for market-friendly reforms. In most countries, businesses try to use an economic crisis as an opportunity to seek removal of regulations that impede their progress. But in India, they use a crisis as the opportunity to seek subsidies and protection from imports,” he says.

Why do we have so many different Ministries in a nation of good governance. The list is alarmingly long, so I won’t print its entirety, but suffice to say that a huge 80% reduction, would not hurt as you could still effectively lead as in Germany. There should be fewer ministries, but effective ministries. The Indian Government needs to Dis-invest on a large scale, from current Investments in such sub Ministries which prevent them from being privatized. The clear answer is to reduce the Government, and to let private industry develop, to fill the gap. It is time to finally step away from the ‘Nationalist” era of Indira Gandhi, which followed Nehru’s Socialist and Non-Aligned Era.

Huge land and other resources from these closed enterprises, can then be re purposed to build the new cities, airports, transportation hubs, Universities, Hospitals of tomorrow. The money from the spin off, of majors like LIC, IOC, SBI, or the top 50, would make a sensible approach, to build India’s tomorrow.  Banks, Insurance, Healthcare, Education should be largely dis-invested to form large Private service industries. The focus should be to provide the most jobs, on a massive scale, to let the Indian entrepreneurship, and native intelligence, combine with modern markets, and interfaces, to develop. The people will find their own way of life, as this is India after all that we are talking about, once they are provided the tools. We can enjoy all the bonus, of India’s young and growing population, for the coming decades, Will have to take the right steps now and change direction, to a more direct approach.

Our Government has no business being in Business.,and should free itself from this burden with the right precautions. For too long has the Indian Bureaucracy caused a pause, in India’s growth story. They hold on to it’s colonial and socialist past, while the nation needs to move ahead; into modern markets and modern industrial\service areas.  The left often gets in the way of the right’s implementation, causing good recommendations, to flounder in red tape. It is time to cut this red tape once and for all. Mr Modi should allow the Indian people, to decide their own economic future, and not ministers, enclosed near him on Raisaina Hill.

It is time indeed for a new Era, for the young and newly educated Indian youth; to become the service providers, to the modern world of the future. We need to fund them with all the States resources at its command, to make the future digital India.  This only means massive dis-investment from the old businesses of yesteryear’s. Now we have to make the most important investment for our future, into the youth of this nation. All our public enterprises, rightfully belong to them, and should be used for their greatest good. Get rid of Syssypuse’s burden of running large economic enterprises, and rise to build the superhighway of the future, with energy and hope. I hope, with a slight change in direction; our path ahead, becomes clearer, and brighter!

This entry was posted in Economics, Hope, Life is valuable, Technology by Rajiv Kapoor. Bookmark the permalink.

About Rajiv Kapoor

Rajiv Kapoor was born in New Delhi. He was educated by the Jesuits at St Xavier’s, and graduated with Honors, from The University of Delhi. Rajiv Kapoor did his MBA in International Business from Penn State and is now settled in the US. He has traveled across most states of India, when he was working on modernization of Rice Mills, and understands their diverse culture and history. This book is a historical fiction, dedicated to his city of birth. His extensive research dives deep into a critical moment, in India’s long history, for his latest Historical Thriller “The Peacock Throne Wars”..

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