fuelling faster growth...!

Once our country used to grow at 3% per annum which was dubbed as hindu growth rate. A series of structural reforms in the last two decades have unleased entrepreneurial activities which has fostered faster growth. At present, the long term average growth can be safely assumed to be 7% per annum. But, its not sufficient for a country like India. According to some statistics, 30% of our population still live below poverty line and the state of infrastructure leave a lot to be desired. Our country needs growth in excess of 10% per annum to ensure a successful economic transition into a middle income country.

Lets evaluate some of the ways in which we can accelerate the growth rate of this country. First of all, the condition of agriculture in our condition is deplorable. The presence of small agricultural plots make it difficult to achieve economies of scale. Moreover, it even becomes uneconomical to use modern equipments on such small plots. The net outcome is low yield and ultimately low income. Moreover, the dependence of 60% of our population on agriculture aggravates the matter. A strategy needs to be devised to shift people away from agriculture. People should join together to cultivate their small plots as a single unit on revenue sharing basis.

Secondly, our industry needs to carve out a space for itself in the international sphere. It should not be based only on low cost but on an innovative spirit and desire to cover the extra mile. Finally, the government should create an environment to produce skilled workforce on massive scale to cater to the needs of the industry. Moreover, there should be focus on enhancing productivity at every step of value chain for extracting higher economic profit. An atmosphere which supports budding entrepreneurs and make people challenge existing beliefs will go a long way in creating a right framework for achieving higher growth.