My Indian Economy

         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.