A well focussed and comprehensive presntation highlightng all the ills of the Indian economy and suggesting some very thoughful panacea commencing with the banks which are really rotten due to staggering bad debts,forced investments in Government bonds and depleting deposits from household savings. Though the formation of bad debts can be minimised if not eliminated altogether by disciplining the banks and borrwers by introducing a self correcting mechanism, the vested interests have not cared to do anything in that direction keeping the banks as a perennial source of money for many including the Government. The three subsidies Fertiliser, food and fuel need to be discontinued and the APMC act which kills farmers and fuels inflation and corruption in the economy needs to be repealed early.The taxation poicies which generate black money,discourage savings and investments and erode confidence among investors particularly forein investors need to be reviewed and reenacted for improved growth of the economy and equitable distribution of wealth generation. As rightly pointed out, the new Government has to do a kick starting and keep the engine of growth well oiled for effective performance.
Dr.T.V.Gopalakrishnan
(This comment is published in The Economist dt17/5/14 in response to the write up The new Government Kick Starting India ).
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