Good advice to
India by Singapore PM
How can India grow
its economy? Singapore Prime Minister Lee Hsien Loong has the answer. He says India must remove bottlenecks so that foreign investors can
operate in the country just as its own corporates expand their global
footprint. The Centre may not be used to such public plain-speaking, even from
Western leaders but it must think
about the view put forward by Lee Hsien Loong.
Opinions shared
by the PM of Singapore are truly reflective of the investment atmosphere in
India. With an ambitious project “Make in India “, we have had all the right
noises in the Global Investment sector. However, the curiosity seems to be
fizzled out with such recalcitrant and archaic rules related to land
acquisition. Strong Political will is the need of the hour to achieve the
milestones promised by the current government which seems absolutely lacking.
Government
seems keen to reach the target of being one of the best 50 countries in ease of
doing business. But this seems too farfetched and unrealistic. Focus should
rather be on Ease of Investing rather than Ease of doing business only then the
true economic potential of India will be realized.
We just make
laws and more laws, we have failed at bring on table a law that includes all.
Singapore is a
small island with no natural resources. It knew its geographical advantages
such as good harbours and strategic location in Asia. It had to depend on
foreign investment for its development. Therefore, it allowed a free hand to
foreign investors. During the years of global expansion, it enjoyed the spill over
benefits. Its infrastructure in terms of metros, transport, highways and real
estate has been the envy of many developing countries, including India.
What India needs
right now is job for our huge younger population. For job we have to make a
reform in our old obsolete laws which is not much more effective now. But
reform should be made by putting people's sentiments and requirements in mind.
India has not
less than 400 million people in the age 18 to 45, who are struggling for jobs,
currently just eking out existence by "bits and pieces" jobs. Any
attempt to create Development plans - whether based on common agriculture or
based on so-called Hi-tech, Bio-Tech, Nano-Tech and so on would have to look at
this scenario whereby unless India generates with ease two jobs per Ha of Land
available, we are soon entering a holocaust like situation and any time it
could go out of control situations - probably even too late for any
corrections. This most important problem of job creation for local society,
that would help every able bodied person to work and earn, cannot be brushed
aside - nothing else is important. We may soon hit 1,450 million population,
when per capita non-forest land would be 0.15 ha
Of course the
Singapore Prime Minister had rightly pointed out the two conundrums which are
blocking India from getting massive FDI. The land acquisition laws and the ease
of doing business are the factors which makes the overseas investors to
hesitate to Invest in India. The political parties hue and cry on land
acquisition, absence of conducive law for acquisition, discouraging labour
laws, little coordination between States and Centre in accepting laws conducive
for overseas investment - all harden the ease of doing business. The Singur
fiasco of TATA on Nano project is clear evidence how the domestic investors are
sent from pillar to post in making new investment. But Modi is strong on Make
in India concept.
Indian political scenario is not conducive for
healthy industrial climate and India to travel miles in augmenting the ease of
doing business. Singapore's Prime Minister was
equally candid when he visited India in 2012, by when UPA II was unravelling,
as was his deputy when he addressed NITI Aayog recently. If we are to progress
economically, we must encourage our friends to be blunt in their assessments,
not praise us to the skies.
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