JAN ANDOLAN (For Turning Around India)

Transcription

1

2 JAN ANDOLAN (For Turning Around India) R.P. Gupta MUMBAI NEW DELHI NAGPUR BENGALURU HYDERABAD CHENNAI PUNE LUCKNOW AHMEDABAD ERNAKULAM BHUBANESWAR INDORE KOLKATA GUWAHATI

3 Author No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording and/or otherwise without the prior written permission of the publisher. First Edition: 2015 Published by : Mrs. Meena Pandey for Himalaya Publishing House Pvt. Ltd., Ramdoot, Dr. Bhalerao Marg, Girgaon, Mumbai Phone: / , Fax: himpub@vsnl.com; Website: Branch Offices : New Delhi : Pooja Apartments, 4-B, Murari Lal Street, Ansari Road, Darya Ganj, New Delhi Phone: , ; Fax: Nagpur : Kundanlal Chandak Industrial Estate, Ghat Road, Nagpur Phone: , ; Telefax: Bengaluru : No. 16/1 (Old 12/1), 1st Floor, Next to Hotel Highlands, Madhava Nagar, Race Course Road, Bengaluru Phone: , , , Hyderabad : No , Lingampally, Besides Raghavendra Swamy Matham, Kachiguda, Hyderabad Phone: , Chennai : New-20, Old-59, Thirumalai Pillai Road, T. Nagar, Chennai Mobile: Pune : First Floor, "Laksha" Apartment, No. 527, Mehunpura, Shaniwarpeth (Near Prabhat Theatre), Pune Phone: / ; Mobile: Lucknow : House No 731, Shekhupura Colony, Near B.D. Convent School, Aliganj, Lucknow Phone: ; Mobile: Ahmedabad : 114, SHAIL, 1st Floor, Opp. Madhu Sudan House, C.G. Road, Navrang Pura, Ahmedabad Phone: ; Mobile: Ernakulam : 39/176 (New No: 60/251) 1 st Floor, Karikkamuri Road, Ernakulam, Kochi Phone: , ; Mobile: Bhubaneswar : 5 Station Square, Bhubaneswar (Odisha). Phone: , Mobile: Indore : Kesardeep Avenue Extension, 73, Narayan Bagh, Flat No. 302, IIIrd Floor, Near Humpty Dumpty School, Indore (M.P.). Mobile: Kolkata : 108/4, Beliaghata Main Road, Near ID Hospital, Opp. SBI Bank, Kolkata , Phone: , Mobile: Guwahati : House No. 15, Behind Pragjyotish College, Near Sharma Printing Press, P.O. Bharalumukh, Guwahati , (Assam). Mobile: , , DTP by : Sunanda Printed at : M/s Sri Sai Art Printer Hyderabad. On behalf of HPH.

4 R.P. Gupta The author of this book is a graduate engineer with brilliant academic record and having experience of over four decades in managing a small corporate. His articles on Indian Economy are seen quite often in different magazines and newspapers.

5

6 Sri Narendra Modi is inaugurating the first book Turn Around India (Through Inclusive Governance and Team Spirit) at Ahmedabad on 4 th April 2013

7

8 ACCOLADES Innovation par excellence has always been the driving force for the ways and means of improved environmental performance, energy efficiency and productivity. I have received the letter along with the magazine, which contains your article. Your efforts and concern regarding the nature and industries are appreciable. Dt.: 23/01/2014 Sri Narendra Modi Chief Minister, Government of Gujarat Thanks for sending the magazine highlighting your article on Green Laws. Dr. Kalam has seen the article and he conveys his thanks to you for sending the article and magazine for his reading. Dt.: 02/01/2014 Dr. APJ Kalam Former President of India The Minister is pleased to receive your articles published in the magazine Steel 360 and The Asian Age. The Hon ble Minister has also extended his greetings and wishing on success in your future endeavor. Dt.: 15/11/2014 Sri Nitin Gadkari Minister of Road Transport & Shipping, Government of India

9 Shri Jual Oram, Hon ble Minister of Tribal Affairs has directed me to convey his congratulations to you for publication of your articles in magazine Steel 360 and in newspaper The Asian Age. He hopes you will keep contributing to the society with the same devotion and dedication. Dt.: 12/11/2014 Shri Jual Oram, Hon ble Minister of Tribal Affairs has directed me to convey his congratulations to you for publication of your article on India must be Globally competitive to check Inflation & Trade Deficit in the magazine Steel 360. He hopes you will keep contributing to the society with the same devotion and dedication. Sri Jual Oram Minister of Tribal Affairs, Government of India Dt.: 02/01/2015 I acknowledge with thanks the receipt of the magazine. Thank you very much for your kind wishes on my assumption of the Office of Union Minister for Chemicals & Fertilizers. I hope to receive your continued support and coordination, which will go a long way in helping me to fulfill the aspirations of the people of our country. Dt.: 01/07/2014 Sri Ananth Kumar Minister for Chemicals & Fertilizers, Government of India I acknowledge receipt of your letter dtd. 17th July, 2014 and have gone through the contents of your article in the magazine and found it very insightful. We wish you the very best. Dt.: 19/08/2014 Sri Piyush Goyal Minister of State for Power & Coal, Government of India

10 Your article Regulatory Reforms An Urgent Need for Economy Revival vividly describes different topics addressing the economic activities of the nation covered in the Steel 360 magazine are very informative and analytical. The deficits in every area are to be curtailed for building the strong economy of the country. The present Government is formed with a lot of aspirations, hopes and expectations of the people and owes the faith of the people to fulfill them. I convey my congratulation for your meaningful magazine and my best wishes for all the success. Dt.: 08/07/2014 An article Road Map for the Adarsh Gram Yojana is published in this magazine which very well describes your ideas and thoughts on Sansad Adarsh Gram Yojana a scheme announced by our PM Shree Narendra Modiji. I congratulate you for your meaningful write-up in the magazine. Ms. Anandiben Patel Chief Minister, Government of Gujarat Dt.: 19/12/2014 Your article on mineral resources is indeed informative. Sectors like steel, cement, fertilizers and power play an important role in Indian economy. Boosting production, cutting transportation costs and reducing import dependency are vital for giving a fillip to the Nation s economy. I hope that you would continue to enrich the readers with your thought provoking articles in future as well. Dt.: 28/08/2014 Sri Akhilesh Yadav Chief Minister, Government of Uttar Pradesh

11 I am in receipt of your letter dtd. 19th June, 2014 enclosing therewith an article titled Regulatory Reforms An Urgent Need for Economy Revival in the magazine Steel 360. I have found the article interesting and informative. Dt.: 16/07/2014 Dr. Najma Heptulla Minister of Minority Affairs, Government of India I am thankful for a copy of the magazine containing an article written by you. The issues pertaining to change in economic laws, to attract more and more investment from entrepreneurs, will enhance the economic growth. Dt.: 15/04/2014 Sri Prithviraj Chavan Chief Minister, Government of Maharashtra I have received your letter dtd. 12/08/2014 forwarding me a copy of your article Mineral Shortage Converting India to a High Cost Economy as appeared in the journal and urging to redesign policies to address these problems. I am glad you are keeping an eye on the important issues. These matters are under active consideration of Government and appropriate measures are being to taken to redress these issues. Dt.: 15/09/2014 Sri Shripad Naik Minister of State for Culture & Tourism, Government of India

12 Many thanks for sending me your article published in Steel 360. I read the article with interest. Dt.: 23/08/2013 Sri Yashwant Sinha Member of Parliament, Chairman Parliamentary Standing Committee on Finance The article on Top Agenda for the New Government is useful and knowledgeable. On behalf of the Hon ble MOS (Agri & FPI) Dr. Sanjeev Kumar Balyan, I convey best wishes to you for the endeavour. Dt.: 11/06/2014 I am pleased to receive a copy of Magazine titled Steel 360 in which your article on India must be globally competitive to check Inflation and Trade deficit is published. The literature is very informative and enlightening. I wish you a grand success in all future endeavours. Dt.: 20/01/2015 Dr. Sanjeev Ku. Balyan Minister of State for Agriculture & FPI, Government of India I acknowledge the receipt of your article India Needs Innovative Tax Reforms published in the magazine Steel 360. The article is worthwhile and merits consideration. Dt.: 28/04/2014 Sri G.C. Murmu Principal Secretary, Government of Gujarat

13 I acknowledge the receipt of your article on Regulatory Reforms An Urgent Need for Economy Revival in the magazine Steel 360. Thanking you for sharing your views on Regulatory Reforms. Dt.: 22/07/2014 Sri Prabhat Kumar Sarangi Joint Secretary, Department of Land Resources, Ministry of Rural Development, Government of India Thank you very much for your article. I am sure your views are being read in the right places. Dt.: 04/07/2014 Sri M.J. Akbar The Sunday Guardian I am grateful to you for sending me a copy of your article on Railway Restructuring, published in the magazine Steel 360. I look forward to reading the same with interest. Dt.: 29/08/2013 Sri N.R. Narayana Murthy Executive Chairman, Infosys Limited

14 I thank you for your letter enclosing a copy of the magazine wherein your article has been published. I went through the article. I agree with your statement that we must adopt logical and productive use of land. Your concern for the environment and for the rural and tribal population deserves appreciation. Dt.: 28/11/2013 I appreciate the analytical viewpoint expressed in your column appearing in the magazine. I agree with you in your statement that we must act with positive attitude bringing our Nation to the heights of development. Dt.: 05/03/2014 I went through your article on inflation and am quite impressed by the depth of your knowledge in economics. It is generally accepted that interest rates alone cannot control inflation, because inflation is dependent on so many other factors. But interest rates is one tool available with RBI to moderate inflation and ensure growth at the same moment. I agree with your point that agri sector requires investment and technology. Banks, especially public sector banks, plays a key role in extending finance to agriculture sector. Dt.: 13/03/2014 Sri M. Narendra Chairman & MD, Indian Overseas Bank Browsing through your contributions in Steel 360 across many issues, I could observe the versatility and depth in your knowledge. In a world where people only grumble about the happenings, your essays listing out suggestions are very welcoming. I wish these suggestions reach the policymakers either through this magazine or some other forum, for their consideration. Converting personal income tax into expenditure tax and then merging it with indirect tax is an innovative suggestion. I also feel that there is a need for broad basing of tax and eliminate black money from our economy. Dt.: 13/05/2014

15 Thank you very much for sending me your article on Railway Restructuring. I have gone through it. In fact, you may be aware that some of the senior executives in the Indian Railways are also thinking in similar lines including potential of PPP in certain activities of the railways. I find this very interesting and look forward to discussing with some of my friends in Indian Railways. Dt.: 22/08/2013 I have gone through your article about the interest rate hike and inflation control in India. In my opinion, you are absolutely right and I also hold the same view that the inflation has to be controlled by increasing supply of goods and services and not by reducing liquidity or demand for money. The monetary policies are appropriate for developed economies where supply is not a major constraint. In a growing economy like ours, there would be increased purchasing power in the hands of consumers and they would demand superior quality life. Sri P.K. Choudhury Chairman & Group CEO, ICRA Limited Dt.: 27/01/2014 As always, I completely agree with your views. Let us hope that we would now get a more stable government which would relook at all the major policies and take the country forward towards higher GDP growth and overall economic prosperity. Dt.: 21/03/2014

16 I have gone through your article What Does India Need? A populist or Development Politics. It is a sincere attempt in analyzing the contemporary political, economic and administrative scenario of the country in the last decade or so. I suggest a talisman for eradicating corruption. If we maximize production, we generate more employment, better utilization of our resources, better balancing of pricing through logical competitiveness, larger clientele s satisfaction thus living small room for populist programmes and policies. However, we can t ignore the cardinal touchstone and there is no alternative to good governance. I appreciate your effort. Dt.: 13/03/2014 Sri Naveen Jindal Member of Parliament, Parliamentary Standing Committee on Home Affairs I have read your column India Needs Productive and Efficient Use of Land and wish to congratulate you for the extremely enlightening article. The sound statistical presentation on the subject is highly appreciated. I truly agree to your perspective that improper usage of land has really been a cause of hindrance to the economic development. The primary reason for artificial shortage of land needs to be discovered and effective steps to be taken to reclassify the land and further plan needs to be devised and implemented to achieve productive growth of land as highlighted in your column. I again wish to thank you for the superb article and look forward to more contribution of inscriptions from you. Sri Gaurav Atha Managing Director, Narbheram Power & Steel Ltd. Dt.: 05/08/2014

17

18 ACKNOWLEDGEMENT It was indeed a difficult task to spare time from my profession and write articles on regular basis. My both sons Akash and Vikash encouraged me to do so, by taking over part of my responsibilities. Without their support, it was not possible for me to present this book. Special thanks to my son-in-law Bharat, my friend S.S. Jangid and Dr. Ashok Panda; they provided me vital inputs for the value addition. My sincere regards to Sri Dilip Ray, Ex-Member of Parliament and Sri Jual Oram, Minister for Tribal Affairs, Govt. of India; they motivated me for this noble cause. This book is an outcome of all such support and encouragement by my friends and well-wishers. I express my sincere gratitude to all of them. My deep and sincere regards to Sri Narendra Modi and other Respected Dignitaries; who encouraged me through their inspiring messages, as mentioned in the beginning of this book. I am indeed obliged to all of them. I also like to express my appreciation to all officers and staff of Shiva Cement Ltd. and my personal secretariat for their immense assistance and cooperation without which, the book would not have seen the light of the day. I am also thankful to Mr. Kappil Jaswani, Managing Editor of the Magazine Steel-360. He was regularly publishing my articles. My thanks to Mr. Akshaya Kumar Sahoo; he helped me in publishing many articles in newspapers. Mr. P.K. Maitra and Mr. Bimbadhara Mishra aided in providing appropriate cartoons so as to make the reading interesting. Thanks to them. I express my gratitude to Mr. Anuj Pandey, Director of Himalaya Publishing House Pvt. Ltd., who extended all possible support for publishing and printing this book at a short notice. Rather he motivated me to compile up all the articles in shape of a book. May 25 th, 2015 R.P. Gupta

19

20 PROLOGUE My first book Turn Around India was launched by Sri Narendra Modi in April I have been writing articles on Indian Economy for quite some time and many of them were published in different magazines and newspapers. An overwhelming response from the readers encouraged me to present some of these articles in shape of a book. Most of these are on the theme; how to turn around Indian economy? I firmly hope that simple and practical suggestions therein will be appreciated by many of you. Since May 2014, new government led by Sri Narendra Modi took over the charge. For the first time, election was fought on the development agenda. Public supported him with enormous mandate. Discontent was prevailing among the public due to low growth, high inflation and poor infrastructure. Public is now looking for such a leader, who can develop and turn around India in a quick manner. For developing a Nation, good governance is the beginning and the present government is indeed capable of this. Good governance does not mean framing the regulations alone. Rather it should ensure true freedom and facilitate every Indian for carrying out the economic activities. Entrepreneurial spirit must be recaptured by all means. We must know that, they are the drivers of growth and development. Manufacturing sector in general and core sector in particular, must be taken out from the financial stress as those are the growth engines of economy. Infrastructure, in general, energy and transport in particular, must be boosted in terms of capacity and cost efficiency. Failing which, high growth will not be sustainable and inflation will continue to remain in the system. For this, participation of private capital is most crucial, since government can t take entire burden. Various government functionaries down the line prefer to regulate than to facilitate. Good economic policies are often superseded by the regressive laws and regulations. New interpretations of economic laws are invented through magnifying glass with a single motto to penalize the producers. Any noncompliance is equated with grave criminal offence. This is indeed a big disincentive. Even Modijee has described this as Kanoon ka Jungle. Laws and regulations must be simple and compliable. It should change with time and result into developmental outcome. For this, all the wings of government need to be growth-centric. They must also know about the economic needs of country. If needed, training programmes may be organized. Good governance essentially need team spirit without which the Ministry alone can t deliver the result. We should, therefore, bring everybody on board

21 including non-economic wings of the government, regulators, field officials and taxmen and team spirit be built. Even opposition benches must also be included in Team India. Failing which, good policy cannot be framed. If it is framed, it cannot be implemented smoothly. In absence of coordination between center and states, a Nation as a whole can t be developed. While framing the policy, state governments must be an integral part of the team. Good policies alone will not deliver the result, unless implemented with a team spirit. Growth target may be fixed for each state and district for enlarging the participation and creating team spirit among all the functionaries. Competition for growth may be crafted and achievers be rewarded. States must appreciate that, income disparity between the states is an outcome of non-congenial investment climate in the backward states. Blaming the center may attribute to political score; but it will never be useful for the growth, development and prosperity. Besides developing a team spirit among government functionaries, we also need public participation for achieving the goal. In the past six decades, we have created such an atmosphere; that will usually not be conducive for the economic activities. Pro-growth policies are termed as pro-rich policies. Decision makers are branded as corrupt. Entrepreneurs are equated with the criminals. On the other hand, activists are glorified. This has crafted a vitiating atmosphere. Most of the governments are opting for populist policies and delaying true economic reforms. Entrepreneurs are shying away from new investments. These will never lead to the desired growth. We have to run awareness campaign among public about the economic needs of country, so as to promote participation of every Indian in the development journey of the Nation. Every Indian must know that, public income will rise along with GDP growth and there is no substitute to this. Government subsidy can be an interim relief for survival that too, for the most deprived persons. It can never provide long-term solution for self-dependency. Rather in absence of GDP growth, government will lose its social spending capacity also. Growth will come from the production of goods and services only. Such productive activities are to be performed by the team of entrepreneurs only. For growth and development of the Nation, we need both private capital and a team of entrepreneurs. Government should enter into such areas, which are difficult for the private entrepreneurs due to low commercial viability, but essential for the country. We should remember the pre-1991 era; when there was restriction on the private capital. For which, we suffered due to low growth for nearly four decades. Infrastructure and human development couldn t take place. If this is true, why do we oppose pro-growth policies? We must know that, in a democracy, no government can frame a policy without the public support. Yes if there is any alternative model we must debate in a constructive manner.

22 Before criticizing the government, we must introspect. What did we contribute for the development of our Nation? Democracy has certainly given us a right for protesting. But such agitations should be led with responsibility and without damaging the democratic institutions. Whole world is watching our country; since we are the largest democracy. In the process of development, some side-effects might happen; but we should learn from our mistakes and rectify the same. Criticism and mud-slinging will only promote the conflicts and stop our growth and development. Empowerment without responsibility is never good for the country; that we must know. After realizing these facts, Sri Narendra Modi has rightly told that, JAN ANDOLAN for development journey must be participated by the public in a similar manner what Mahatma Gandhi did for the freedom movement. Good slogans and sympathy towards poor can fetch the votes, but cannot remove the poverty. It is only the economic growth, which can create income earning opportunity for the public. This has been well established in India and elsewhere also. We must, therefore, build a team of entrepreneurs; who can create such opportunities and eradicate poverty. All must extend whole hearted support through constructive participation. Media prefers promoting the conflicts among political parties. Misdeeds of government and productive sector are very much highlighted. But the positive happenings are rarely covered; as this suits to their viewership and readership. I believe media must play pro-active role in spreading awareness about economic needs of the Nation. They have prowess to influence public opinion in either direction, be it negative or positive. Frequent exposure of corruption and blame game can create a thrilling story, but it will certainly damage the investment climate; as we are in the process of rebuilding. Freedom of expression must be used with utmost responsibility. No doubt, there is overall improvement in the public sentiments. But it is also true that, no significant change is noticed at the ground level. Initial moratorium period for the new government is almost getting over and public is becoming desperate. At this critical juncture, we need bold reforms; that can turn around India in the true sense. Crony socialism a synonym of communism, must end since, that has not delivered the results in past six decades. Challenges are too many and time is short. We have a talented youth team full of energy and vigor. We must use their energy in the right direction. Current leadership is fully aware about all the strengths and weaknesses. I am quite hopeful that, they will take the Nation in the right direction. We all must join TEAM INDIA and extend a supporting hand for a prosperous and vibrant India. May 25 th, 2015 R.P. Gupta

23 Secrets of the Nation s Prosperity

24 INDEX Article Description Page Nos. 1 Inter-mixing of Growth, Development and Human Development Inclusive Growth A Political Slogan Poverty Alleviation Scheme A Mirage Revised Scheme of Gold Monetization Could be a Game Changer Boost Infrastructure Spending to Stimulate Economy Transform India Through Ease of Doing Business Land Acquisition A Road Blockade to Development When Indian Economy Will be at 10 Trillion USD? Whether High Interest is Good for India? Roadmap for the Budget India Must be Globally Competitive to Check Inflation and Trade Deficit Modijee Calls for Jan Andolan for Vikas Yatra Road Map for Adarsh Gram Yojana When Indian Economy Will Turn Around? 64-68

25 15 India s Prosperity Role of Entrepreneurs Mineral Shortage is Converting India as High Cost Economy India Needs Productive and Efficient Use of Land Regulatory Reforms An Urgent Need for Economy Revival What Should be Top Agenda for New Government? India Needs Innovative Tax Reforms Get Rid of Old British Colonial Rules and Russian Economy Model 22 What India Needs A Populist or Development Politics? Interest Hike Can t Control Inflation in India Green Laws Damaging Economy But Not Protecting Environment Land Bill Shall Deepen Crisis to Next Stage Change Mindset and Unlock Hidden Value of Rupee Leverage Gold Stock in the Country to Overcome Present Crisis 28 Railway Needs Innovative Reforms for Boosting Economy Whether Food Security Bill is for Public Welfare? Abbreviations

26 Inter-mixing of Growth, Development and Human Development [30/06/2013] Quite often, we inter-mix Growth, Development and Human development that creates confusion among masses. Growth stands for the GDP growth. Development means Infrastructure development such as Irrigation, Power, Transport and Communication etc. Human development means developing social infrastructures like Education, Health, GDP growth is a synonym of Economy growth that comes from increase in the production of goods and services. Here, production is having a wider meaning that covers entire economic activities such as, Industry, Agriculture and Services. Even a vegetable vendor or a taxi driver is contributing to GDP, since engaged in the production of services. Industry and agriculture are the primary sources and Services are mostly the by-products. These include trade, commerce, transportation, communication, financial services, hotels, restaurants, entertainments and tourism etc. Sanitation, Drinking water and community services. All such developments need capital resources; that will come from GDP only. GDP (Gross domestic product) is the sum total of Value addition of all these economic activities. This is assessed after deducting the value of inputs from net production value (excluding taxes). It is also equated with national or public income. GDP growth generates new jobs and upsurges public income.

27 This concludes that, productive activities are the only source of public income. There is no other alternative to it. GDP also contributes to the government revenue, which can be used for the purpose of development and human development spending. Hence, GDP and its growth is the principal indicator for measuring the country s prosperity. This must be the top agenda of any government for achieving overall prosperity for the Nation. Development stands for the general Infrastructure development that broadly includes energy, transport, communication, irrigation and housing. These infrastructures are the bare minimum necessities of the modern world; those improve living standards of public. This is also known as VIKAS in Hindi language. Besides public comfort, these are most essential for sustaining high growth rate also. In absence of adequate infrastructure, growth will be jeopardized and economic efficiency will also be affected, inviting the inflation. Currently, our Nation is facing similar situation and therefore, low growth and high inflation have become almost a permanent feature in the Indian economy. No, Growth means GDP growth. Development means Infrastructure development. Human development means Social infrastructure development. Are Growth and Development same thing?

28 Human development means, developing social infrastructures like education, health, sanitation, drinking water, etc. It also includes community services like entertainment, culture, sports etc. These are essential for upgrading the living standards of public. Particularly, health and education are the most essential needs for building human capital. Drinking water and sanitation are the bare minimum needs for good health. Currently, we are far behind on all these fronts, which are causing public dissatisfaction. In past years till 1980s, these infrastructures (general and social) were developed through government resources only. Lately, Private sector was also promoted to supplement these activities. Twelfth Five Year Plan has envisaged that, private capital participation will be up to 50% level, considering the resource constraints with government. Developed countries could succeed in faster development with a combination of public and private investment only. India is gradually adopting the same route, may be in a slow manner. As per past legacy, we normally expect free or subsidized user fee for availing these infrastructure services. This affects commercial viability of the infra projects. Private investment will not enter in absence of the commercial viability. If we expect that, government will continue with subsidized services and borrow for financing these needs, then the debt servicing will be difficult and we will land into debt trap. We are fast approaching to similar situation; that must be avoided. We must change our mindset and pay user fee, enabling to mobilize investible resources for the development. Few activists recommend for increasing the tax for financing such development plans. Increase of indirect taxes will add to the consumer s cost and bring inflation. Increase in direct taxes will reduce savings and slowdown the process of growth and development. Therefore, raising taxes in general is not a prudent solution. Rather levying user fee in shape of non-tax revenue could be a logical and better approach. We must, therefore, focus primarily on the GDP growth for increasing public income vis-à-vis their paying capacity of user fee; then only infrastructure spending can be boosted. However, some subsidy for

29 the poor and middle class is certainly expected. But it should be within the prudent limit. Cross subsidy on the productive sector will inflate the production cost of goods; that will be loaded back to public after roundtripping. However, cross subsidy can stay in a very limited manner for striking a balance between the economic needs of the country and paying capacity of public. Several socialists and politicians argue that, human development will drive the GDP growth. Even most respected economist Sri Amartya Sen also recommends in the similar line. Such statement can bring popularity, but it is misdirected. It violates the basic principle of economics. It will rather damage the prosperity of Nation in long run. The prosperity will start from GDP growth only, which drives the national income. There is no substitute to it. However, public income and government revenue from such growth must be judiciously spent for the development and human development and achieving prosperity. A prudent consideration for weaker section must exist in a balanced manner. A successful model envisages high GDP growth combined with the development and proportionate human development spending. But high GDP growth must remain as the core issue failing which, the development or human development plan will not gear up, as discussed above. At the same time, this requires cutting down of the revenue expenditure by government so that, revenue surplus can be judiciously deployed for building general and social infrastructure; that provides long-term solution. The choice is left to the policymakers that, we give priority to short-term electoral gains or build strong foundation for a prosperous India.

30