Global Economy Revival-Indian Opportunity

BIKASH CHOUDHURY




Global economy currently need an opportunity for large scale new job creation and value creation by value addition in huge scale that could alter the quality, quantity and value of consumption that would be just sufficient to drive Global demand for goods and services in mature economy. India presently holds the key to faster Global economy revival and a stronger and stable Global Economy. India is currently having over half a billion rural population ready to join the ranks of middle class with higher per ca-pita consumption.However,Indian economy is plugged by logistical bottleneck, inefficient agriculture and huge leakage in value of goods due to mismatch between supply and demand for each category of agricultural commodity. World Bank can bridge the gap in logistical bottleneck in India with an aid of $500 billion USD. The aid could help India complete three projects that would plug the logistical bottleneck in a time frame of ten years. First, transform the four metro cities like Kolkata, New Delhi, Mumbai and Chennai in to World Class Cities with an investment of $ 100 billion USD. Second, to connect the four Metro Cities by Bullet Trains with an investment of $ 100 billion USD. Third, to complete all Road and Railway projects connecting small cities with metro cities and connect over half a million villages with near by towns by all weather and concrete roads with an investment of $ 300 billion USD.These investments in India would create immediate job opportunity in mature economies of US & Europe as infrastructure companies in developed countries are likely corner the contracts in India. In long term, after completion of three projects; Indian rural and urban economy could be integrated by virtue of world class logistics and therefore save the leakages
value of Agriculture commodities. Further, Indian economy would be able to deal with mismatch in supply and demand for Agricultural products due to smooth flow of information and infrastructure for movement of physical goods and services. Again, large scale value addition in agricultural commodities could take place in rural areas more competitively with economies in labor arbitrage. Development of Productive capacities for value addition and production of finished products, ancillaries and to extent capital goods would happen in rural areas and that would drive employment and consumption in long run to complete the virtuous cycle of prosperity in India and demand for goods and services for mature economy in US and Europe.
Again, India is a large and mature democracy with proven ability of smooth transfer of political power on the basis of popular mandate. Global investment in India would be secure and most likely to return a better ROCE than other BRIC countries. World Bank must give this Indian opportunity a chance.