Substantiating the growth steam of India- II

[Another flow of thoughts, influenced by the articles of Mr Mark Dutz and Mr Kala Seetharam Sridhar…]

The Indian economy today comprises two distinct groups of enterprises; the first leading enterprises are at par with the most advanced parts of world whereas the second group, the one at the lower end of the scale, is far behind the first group. The gap between the two is extremely large, though the second group provides employment to 90% of the workforce of India. But in a sense it can prove good to economy as we have a massive area to improve on and if all the opportunities are properly tapped, no one can hinder the transition of the second group into the first one. According to Economist, India’s fortune lies as much on the power of diffusion and absorption as on its power of invention. So, in order to promote the innovation and technological advancements across the country, many a things need to happen.

-Encouragement of stronger competition among the enterprises. This has already being seen in 1991, when the huge number of private sector investments in R&D went into sectors that were most open to competition
-Introduction of more market relevant skills in higher education.
-The programs offered by a large number of central public institutions for the creation of enterprise and absorbing knowledge are often overlapping. Different ministries run similar programs in any area. Also a third party monitoring and evaluation with international benchmarking would make clear benefits.

-Only 22% of Indian enterprises are internationally quality certified (such as ISO or sector specific certifications). This is only half the percentage of China. Awareness of the benefits of such certifications should be proactively imparted.

-Around 2% of Indians live abroad and they earn almost two third of India’s GDP. These talents should be attracted to their own country. One way to encourage top scientists and research scholars to India is to develop a national research and education network for high end research institution and other applications, similar to Internet2 in US or DANTE in Europe.

-Innovation system and process must be permeated through common people, especially relevant to poor people, so that entrepreneurial qualities can be developed at grass root level as a cluster of talent is still untapped at the bottom of the pyramid.

One more important trend being seen these days in the country is the changing practices in government, which is contributing to the economy’s growth.
For instance municipal bodies are the primary providers of the key urban services like water supply, sewerage, sanitation/solid waste management and city wide roads. To raise funds, some of the urban local government are adopting innovative ideas in their management practices. Ahmedabad Municipal Corporation became the first local body in the country in 1996 to tap the capital market to raise funds through the issue of bonds. Indore has come up with a 50:50 program in which citizens of a jurisdiction get their roads revamped from a private contractor and the municipal corporation contributes to the remaining 50% of the bill. Many cities has privatized their mass transport systems.
Last but not the least, the Right to Information act, which was passed in parliament in 2005, is indeed a very powerful weapon in the hands of a common man. While RTI can’t be used to solve any problem but it definitely provides a mean to seek more information about the problem. It can be used to get the knowledge of government functioning and service delivery which have implications for the public. RTI cat had thrown up instances of plain chicanery in governance. For example bureaucrats in Punjab are reported to have misappropriated the funds collected for the victims of Kargil war, Orissa Cyclone and Gujrat earthquake....

I know these are very positive pictures of the system. Only few cities are like Ahmedabad, Indore or Surat in India. Only a small portion of the population is using RTI appropriately. But the beau idéal can be achieved if every concerned body learn from each other. No gain in cribbing about the dark picture of the country. Just look at the good one, emulate them and try and create a paragon. There is a lot at stake for this nation. India has enormous untapped potential, she just needs to wake up and start working towards it…