It's true that India is buzzing with the motto of all inclusive
and sustainable economic development.Indian economy has never been this
robust since the 1991 economic reforms. In the just concluded winter
session of our parliament banking laws amendment bill has been passed
which gives our federal bank (Reserve Bank of India) to issue new
banking licenses,increases voting rights of retail/minority investors in
private sector banks to 26% from 10% and that of private investors in
public sector banks to 10% from 1% as well as private investors in-spite
of RBI getting powers to supersede boards of private sector banks.
In addition to this to improve finance and monetary
polices bills like Prevention of money
laundering(amendment)bill,enforcement of security interest and recovery
of debt laws(amendment bill) have also been passed.The setting up of
Financial Action Task Force ( FATF) , an inter governmental body will
be responsible for setting global standards against money laundering and
terror financing.
Coming to the internal finance sector, the report of the
13th finance commission wants to reduce revenue deficit eventually
aiming to eliminate it and reduce fiscal deficit to 3% by 2015.Vijay
Kelkar who's leading the 13th finance commission has also proposed a
change in the tax sharing ratio between the center and the
states.Hopefully GST(Goods and Services tax) will be implemented soon
replacing the old and complex tax regime.The other areas of focus are
Medium Term Fiscal Plan (MTFP) for the states,CSS(Centrally Sponsored
Schemes),amendment to the FRBM act.
In the area of external sector policies major boost has been
provided to trade.Most important of all the major policies has been
the allowing of FDI ( Foreign Direct investment). The trade has also
been at it's best with many countries and unions.In Europe ,Germany
continues to be our top trading partner and there's is India-EU free
trade agreement called the BTIA (Bilateral Trade and Investment
Agreement) on the agenda.We had a commemorative summit in New Delhi to
mark 20 years of partnership with ASEAN and talks are on for FTA between
India and ASEAN.Many deals were signed with Russia when Mr.Putin was
here personally this month.France will be building nuclear reactors
along with Russia while both the countries will be also supplying
defense related goods worth billions of dollars each.The Japanese
investment in the Indian infrastructure is also very good. There is more
hopes with the newly elected Prime minister of Japan Shinzo Abe being
an old friend of India. Increased foreign investments is being foreseen
with all these activities going at full speed .
There is a new science policy for innovations,stabilizing
research institutes,encouraging women scientists and establishing India
as one of the top 5 scientific powers within 2020 India is said to be
the first country to make corporate social responsibility
mandatory.India will aim for reducing subsidies given for
fertilizer,fuel and food. Companies bill,2011 will make India a safe and
attractive destination by avoiding too over-inspection of the companies
and also Corporate Social responsibility(CSR) has been made mandatory
through statutory provision projecting India as the first country to do
so.
I've not even been able to point towards tip of the ice-berg when
it comes to the reforms that's taking place in the gigantic Indian
economy because there is RTE(Education rights),NRHM/NUHM(National Rural
Health and Urban Health),MGNREGA (Mahatma Gandhi National Rural
Employment Guarantee Program)and many more.Then again most of us are
excited about the impact the effects of 2012 economic policies is gonna
make on the lives of a billion Indian people.
