Sunday, November 4, 2012

How to Kick Start Indian Economy Faster?



                                                   Bikash Choudhury


  • In spite of single window clearances, India still stands at the bottom on “ease of starting and doing business” and in another dimension if the efficiency of Govt. sector increase by x%; the competitiveness of Indian business could be enhanced by 3x-5x%. The logic and the reason is very simple; even today Indian business post 25-40% of their net profit due to some dole/concession or advantage provided by Govt. and therefore, Indian Industry/Business have neither truly focused on Competitiveness nor Exploration of overseas market. And, therefore we don’t see many Indian MNC or Transnational Corporations.

  • Former PM Rajiv Gandhi introduced computers in the country in a big way and started NIC (National Informatics Centre) to make all Govt. transactions digital to improve efficiency, substantially. However, currently less than 10% of transaction in Govt. happens through digital medium; which can be scaled up to 100% in just over 26 months; eight months for Software Development and eighteen months for the roll out.

  • Govt. needs to hand over the project to a consortium of Indian Software & Hardware Companies in partnership with NIC. The consortium would develop the software and provide all the hardware on an arrangement for monthly payments on number of transactions and number of terminals used for a period of 15 yrs, though the rates can be revised every five years.

  • This project could create huge demand for highly skilled jobs; demand for technical education would also improve that would utilize the capacity for engineering education in the country. The scale and scope of the project of connecting and networking 10 million Govt. functionaries in Central & State Govt. would also create huge demand for Idle funds in our Banking system, Financial services and products in ICT Industry. There are possibilities of demonstration effect on other related sectors as well; helping to kick start the Indian Economy little faster.



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