There is a widespread economic depression in the world and india is also not an isolated island. The virtuous cycle of economy is yet to get the sustainable torque to break the depression inertia. What went wrong with the global economy , is the billion dollar question. Did the supplies in each sector have outsmarted sum total of demands in that sector , directly or indirectly . Is there skilled human resource deficit problem in the world or reduced consumption of goods and services, impacting negatively the positive momentum of these sectors. Have the business processes done extra rationalisation of business activities, enhancing outputs with lessor human resources and thereby retrenching the extra employment from the markets, impacting negatively the huge work force and then pushing down the demands. I mean the global economy is passing through the course correction mode. The manufacturing activities are having global considerations and competitions. The centralisation of economies by the big multinationals, is grabbing the manufacturing markets of all areas without creating commensurate job markets , region wise , to enhance the purchasing powers of people area wise etc . The countries like india where the process of manufacturing activities has been so primitive , the labour productivities being so less , the manufacturing sector is under tremendous global pressure to become competitive or crash in the wholistic perspective of manufacturing environment . The medium and small scale industries are vanishing fast, depriving the decentralisation leverage driven benefits to the manufacturing sector of economy with geographical proportionalities . Thus there are exchange of sectors and business processes and not the generic increase in the goods and services. For example , e commerce sites are replacing the retail sectors but the consumptions have not increased . Thus the business patterns are facing existential crisis . Those powerful processes , replacing the old practices, their owners may be facing booms but those facing extinctions are under economic depression. Thus the businesses are being substituted by other innovations without creating extra demands and purchasing powers. The business processes and business patterns are undergoing paradigm shifts. In this vicious circle what next . In fact we have to innovate products, we have to discover products which are new to the consumers, we have to economise the cost of products to push their demands in terms of affordabilities . The Agro sector which has still not been rationalised in india in terms of production potentialities , can be the game changer in this context as it involves 50% population and around same % of contribution in the GDP . If the relative GDP of agriculture is four folded or quadrupled and made cheaper by the crop engineering, seed engineering , harvest and irrigation engineering along with allied activities, it can not only increase the purchasing power of huge population but also encourage them to buy manufactured goods and services in the increased quantities , giving the critical momentum to the sluggish economy. The fortune of purchasing power driven economy is at the bottom of pyramid. Unless the people at the bottom of pyramid are included in the bracket of prosperity , I do not foresee any sizeable jump in the inertia or depression of economy. The Agro sector allied with the animal husbandry, poultry , fishery and dairy products can be bartered with food deficit regions of world to meet the energy and petroleum requirements. This can be done when we have cheapened the cost of production without compromising qualities. The real answer lies in these solutions if we want to address the economic slow down. The make in india slogan may not be thought in isolation. Why will the multinationals come in india to do the manufacturing activities when our power tariff and supply is not at par with global standards. Needless to say the lower labour productivity and bad labour laws. The downsizing of govt and reducing taxation burden on goods and services along with outsourcing or contract purchasing services are keys to future . The self imploding govt bureaucracy structure , eating the sizeable potion of govt revenues , can not be allowed like this. The admin expenditure of govt for providing governance is simply unaffordable and super exorbitant if we do the financial or performance audits. I mean we have to look in to entire issue from a surgical and unpopulist perspectives. This is only the tip of iceberg .
Posted on: Mon, 08 Dec 2014 11:01:11 +0000
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