Enhancing the Capacity for Growth

Today, India can sustain a GDP growth of 8 percent a year. Increasing this to 9 or 10 percent will need more mobilization of investment resources; better allocation of these resources through more efficient capital markets; higher investment in infrastructure through both public and PPP routes; and more efficient use of public resources.

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Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby routdebendra904@gmail.com » Fri Feb 25, 2011 3:34 pm

Subsidies may reduced to minimize the govt expenditure but other option should be consider for this purpose. Populism policy can be checked.
Another important steps A DEVELOPED PUBLIC DISTRIBUTION SYSTEM can solve this purpose. Well planed agriculture marketing system can improve economical condition of farmers for which their productivity capacity cane be increased.
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Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby dkjain49709@rediffmail.com » Sat Feb 26, 2011 12:30 am

Politicians often talk of black money parked in Swiss Banks but always fail in their exercise to bring back the same in our country because they are not honest in fulfillment of their election eve promises.
They made unprecedented hue and cry before last general election on huge amount of black money parked in Swiss Banks but politicians of all parties became almost silent after the declaration of election result. What they say and what they mean to do is always different.

India is still rated rate as one of the top corrupt nations. It is worthwhile to mention here that India is rated as one of the top ranking hunger inflicted state of the world even though Indian leaders claim and feel proud of achieving comparable GDP growth in the economy and said to be decoupled with global recession or global financial meltdown.

Madhu Koda ex-CM of Jharkhand and his associates could accumulate hundreds of crores of rupees through corrupt means because he knew the power game and corrupt game being played in the country in all the states. Koda is bird of the same feather and he is not new or his case is not an isolated case of corruption in India. Latest story on extent of corruption in 2G scam ,Adarsh Society and CWG scam is well heard and well read by Indians. In fact there is no dearth of cases of large scale corruption, fraud, scam and cheating in our country.

Rulers, leaders ,politicians, CEO or head of any organization first pull together all his flatters on whom he can blindly rely and throw away all honest persons who can put hindrance in their task of earning or printing money. In this way evil work of the ruler does not come to fore as long as one of the corrupt officers raise ugly voice against the system not because of his sudden thirst for patriotism but due to his puncture the effort of other corrupt person who has been enjoying larger share of ill earned wealth.

As a matter of fact rulers of this country could not stop corrupt practices in the system prevalent in our own country and could not stop formation of black money within the country and hence they could not and cannot force foreign countries to declare name of Indians who have parked money in Swiss bank.

Similarly when investing agencies like CBI, ED, Vigilance, IT officials and other regulating agencies are themselves corrupt they cannot stop spreading cancer of corruption in the Indian body system.

And the most vital point is that when rulers themselves are corrupt and they themselves have parked their black money in foreign banks they cannot endanger their own money parked in either Swiss Bank or in Indian financial and real estate sector.

It is rightly said by the great writer Munsi Prem Chand.
"Jab Rakchak hi Bhakchak Ban jaye to vinash nishchit Hai"

When almost every minister at Center and almost every minister in each State government is indulged in making money through corrupt means, when officers in general are involved in corrupt game played by politicians and when all officers entrusted with the duty of stopping and removing corruption from the system and finally unearthing ill earned money are busy in making money through corrupt means who will make serious efforts to unearth money held in Swiss Bank.

Persons or group of person who have kept their black money in Swiss Bank are none other than politicians and government officers. When top officers and top ministers are corrupt one cannot imagine of businessmen and professionals abiding by Indian rules and following rule of ethics. It is government officers and politicians who make survival of honest service men, honest businessmen and professionals difficult and force them to manufacture black money and share with corrupt officials to live peacefully. Honesty has rather become curse for government servants as well as businessmen and professionals.

Black money is not only in Swiss bank, it is undoubtedly parked in banks in India too. Black money is remitted to foreign banks not in bags but only through Indian Banks. Black money is concealed in form of gold, land and building, apartment, big bazaars, farm houses, private professional colleges and in almost all big houses. Black money is visible to all whose eye is not jaundiced with the decease of black money. Nine out of ten multi storied residential building and commercial complex in Metros and big towns are constructed by ill earned black money only. It is open secret. As such it is not necessary to focus attention on money parked in Swiss Bank and make politics out of it but is more important to focus on black money parked in India and which is visible in India itself.

It is necessary for almost all politician and officers working in government and government departments to introspect and look into their heart whether they are really honest. Politicians in general cannot afford contesting and winning an election without the help of black money received from businessmen and at the same time without the indirect support of controlling officials none of the businessmen can imagine of tax evasion.

Without the support of corrupt officers, none of the contractors in India can carry out their tendered allotted work. More than fifty percent of value of contract work allotted by government to contractors is consumed in distributing commissions to corrupt officers and politicians. Ministers cannot even organize a rally without the financial support from local corrupt officers, black money of rich businessmen and professional.

I therefore feel that work of purification should start from our own land, our own offices, our own banks, our own politics, and our own administrative system. Purification should start from the top. Politicians should stop playing foul game of putting blame always on foreign agencies for every lapse on their part if they are really interested to see India shining.

India must stop flattery culture because this flattery culture is the root cause of all evils. None of government servants can dream of good posting and timely promotion without indulging in flattery to big bosses and powerful politicians. It is therefore necessary to make transfer, posting and promotion fully transparent and remove all bottlenecks which gives scope of whimsical decision in the matter of posting and promotions. It is the need of the hour to punish those who are misusing their delegated powers and who promote flattery culture by taking arbitrary decisions.

CBI, Vigilance department, Band, IT department, IB ,Anti corruption offices ,custom officials all such regulating agencies which are established for prevention and elimination of corrupt practices should be made more powerful and given sufficient man power to carry out their holy job. Any officers found indulging in corrupt practice in such department should be punished severely without any discrimination based on caste, community or religion.

Political interference in administrative matters, police action and judiciary must be stopped even if for this matter rules of the land are needed to be altered, made more severe and non-discriminatory. Delegation of power in few hands at any levels and in any offices gives scope for corruption and hence the power must be diluted to the possible extent in such a way that it does not cause delay in execution of plan and projects. Officers who misuse power must be punished immediately.

And last but not the least, MLA and MP who rule the country should not be elected by votes of illiterate and criminals but selected from top IAS and IPS officers, toppers of colleges, reputed social reformers, successful bankers, reputed honest businessmen and from persons of undisputed character.

System of garlanding and gifting top officials and political leaders as also that of giving red carpet welcome to top officers must be stopped immediately. Practice of spending crores of rupees in inaugural functions or in felicitating top officials or ministers must be stopped forthwith through an ordinance at least for one year to start with.

Judiciary should be provided adequate quality man power so that pendency in court is made zero and justice is made available in shortest span of time to all aggrieved Indian citizen. An environment has to be created in the country where criminals of all nature have fear of action in their mind and in their core of heart.

It is tragedy that in our country police actions in our country is taken only against good citizens and punitive action through court orders is also possible only against good citizens. Actual crime doers use judiciary to perpetuate their reign of crime.

If this fear of action is ensured at all levels I am very much sure that black money from Swiss Bank or Indian Banks will automatically come on the floor and people will be motivated to use the money for constructive purpose rather than parking in foreign or Indian bank.

Honesty is the best policy has to be proved at ground level. Merit and merit only should be respected in our country if Indians really want India to grow at grass root level.
GDP growth shown by ministers to International agencies is not at all helpful and pleasant for majority of Indians who are unable to even afford their normal livelihood and manage respectful life.

It is worthwhile to mention here US President Mr. Obama has taken many steps to reform US banking culture taking lessons from 2008 financial crisis. On the contrary our government is still unaware of growing sickness in Indian banks only because we Indian know how to play with data, sink and swim in the sea of data.

Even USA, pioneer of reformation, liberalization, privatization and globalization has started revisiting and cutting short the policy of outsourcing, policy of concentration of power in few hands, policy of complete freedom to trade icons and policy of complete freedom to banking industry so that more and more employment opportunities are generated for US citizens, expenses on executives is cut to size, and corrupt practices in US system is put an end for good and forever.

Why not Indian politicians learn lesson from their masters at least and ensure transparency in all their action and why do they not discard vote bank politics based on caste, community, religion and region is a big question to answer and a big challenge for those whose vision is to see India really shining in the world.






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Re: Should we reduce food and fertilizer subsidies to provid

Postby sssonu64@gmail.com » Sun Mar 06, 2011 4:18 pm

no these subsidies should not be reduced
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Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby akhiladlam@yahoo.com » Sun Mar 06, 2011 5:39 pm

Yes, we should even though we will see resistence from farmers at first, its mainly due to political parties. However, if we reduce subsidies we are preparing our agricultural sector for the future. Furthermore, I think we need an exchange run by the government or private/government partnership that purchases the output by our agricultural sector. Using that exchange farmers do not get cheated and the exchange itself can make more money via export or selling domestically. Additionally, we must invest more in our infrastructure and create more ambitious projects. In addition, I think we must spend more on our irrigation projects which will create sustainable water flow for the agricultural sector as well as clean electricity. Hydropower is extremely important if we want to grow in the future.

Thank you,
Akhil
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Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby tyagiakhilesh@gmail.com » Tue Mar 15, 2011 4:14 pm

Given the circumstances of India, Subsidy culture cannot be rooted out in a day. Change should be gradual.

Fertilizer Subsidy:

It should be phased out slowly and slowly while we should encourage our farmers towards organic farming. I almost daily read the innovation taking place in our farms by our real ground leaders. They must be properly rewarded and encouraged. No scientific laboratory can work as efficiently as millions of farmers simultaneously can. I think they must be given both options, agriculture through fertilizers and agriculture through organic methods. And both options must be associated with balanced incentives. Certainly more incentives for adopting organic farming. And slowly fertilizer subsidy must be cut to zero.

Food Subsidy:

This should be continued. But PDS must be computerized. Once Aadhaar is out with ID nos, automated system must be used like smart cards, just like, swap the cards, insert money and get the food. Manual interference must be limited to just supervision and security level. Just like ATMs. As the greedy nature of Indian man cannot be changed. And in a deprived country like India, where the inclusive growth's fruit are yet to be visible, this greed for some extra money shall never go.

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Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby veeras83043@hotmail.com » Tue Mar 22, 2011 10:27 am

In fact we need to balance from both the ends. Its time for us to think how we need to balance both. All are very important and essential for everybody.
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Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby arvindgeo@gmail.com » Wed Mar 23, 2011 6:15 pm

I strongly believe that the amount spent on provision of subsidies on food and fertilizer should be diverted to capacity building i.e. on the provision of social and physical infrastructure.

Subsidy on food and fertilizer has not achieved the purpose in reducing the rural poverty since its inception.

We are well aware of the fact that:

• The landless farmers are rising due to division of land. So, subsidy on food and fertilizer is going to be beneficial only for handful farmers. The result is widening the gap b/w rich and poor within rural subject.

• Rising food inflation due to huge loss of food produce which is a derivation of poor management which includes lack of quality food storage facilities (ware houses, cold storage), lack of formal market to buy food produce, education (lack of awareness), market risk to absorb the produce.

In short, the solution to points mentioned above is rural infrastructure which includes capacity building, reduction of risk associated with the food produce and reduction in wastage of production.

The enhancement of sound storage system, agricultural produce market structure, education, awareness and agro based industries may result in

• Diversion of rural workforce from the agriculture to agriculture allied activities without increasing burden on the urban set up.
• Reduction in food wastage, leading to stabilization of food price and improvement in food security.
• Risk reduction related to market absorption of food produce

Diversion of subsidy towards the rural infrastructure is in line of the famous quote illustrating "Prevention is better than cure".

Regards,

Arvind Kumar Rai
arvindgeo@gmail.com
+91 96190 68504
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Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby siddardha243@gmail.com » Wed Mar 30, 2011 7:09 pm

most of our key fertilizers NPK are imported and the prices are artificially high.
reducing the subsides may hit the marginal and poor farmers of our nation.
Rather than paying amounts as monopoly rent, countries like China,Brazil,Australia (which are also hit owing to agricultural needs) can form a BUYERS ALLIANCE and can lobby on these companies for proper price mechanism.
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Re: Should we reduce food and fertilizer subsidies to provid

Postby saji.albert@gmail.com » Tue Apr 05, 2011 12:30 pm

janagiramanpp@yahoo.com wrote:my idea is other way around,By allocating more resources to rural infrastructure , in long run we can reduce subsidies.


If the rural strive today only the question arise for the allocation of long term infrastructure.

Henceforth we have to continue the subsidies in the mean time we could invest for long-term infrastructure too.
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Re: Should we reduce food and fertilizer subsidies to provid

Postby saji.albert@gmail.com » Tue Apr 05, 2011 12:37 pm

janagiramanpp@yahoo.com wrote:my idea is other way around,By allocating more resources to rural infrastructure , in long run we can reduce subsidies.


If the rural strive today only the question arise for the allocation of long term infrastructure.

Henceforth we have to continue the subsidies in the mean time we could invest for long-term infrastructure too.

While doing so we must have ensure that the amount spent by the government is reaching to the needy one.
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