Can India Be Able To Compete With Other Emerging economies

"India" It was an threat To Most Of the Developed and developing Nations and also at the same time It was An Opportunity To Most of the Countries From the Business Perspective, From the Last 20 Years innumerable reforms Had Taken Place In The country In different Sectors whether Its an IT(information Technology), Banking Or its Manufacturing Sector we had shown Our prominence In every Field which helped a Lot In boosting The Economy And our country's confidence Too. Even Now a Days also at the Time of crisis India is on safer Platform comparing to what had happened in US Because of Our sound business ethics and Principles. There was Time When The English men Rule Over us We used Work In Their House Holds , so that a common Man Can feed His Family well, Now was The Time Had Really changed, Most of the Indians are The CEO , VP Of the overseas companies, even Our Indian companies too had started their Ventures In abroad providing employment To them, This Really Hearten every Indian, But still we don't have to take this as an End of Our countries development We have to take This as an Our Start in This Era of Globalisation, Its a Time That we have to stop Feeling Pompous on the Things Whatever We had achieved, We have to work Harder On our Weaker Aspects, I will Point out Both the stronger and the weaker aspects Of Our India.....

(a)-:We have the Strong "Market Economy Fundamentals",and also having a very Sound Financial Entities with the Robust Regularities Systems.

(b)-: We have Larger Exports Comparison To Imports Which Is very Good For the Every Emerging Economies.

(c)-:We have Become the Major-outsourcing Hub Because Of our Cost-effective and High-Quality Services,

(d)-:We are having the Worlds Largest Pool Of Highly Educated and English Speaking Professionals Round (270 Millions) , which is largest In Any Non-English Speaking Countries.

(e)-:We have Better Financial Stability, Indian Capital Market are amongst The Best Capital market in the world,

(f)-: Various Reforms Had been Taken Place By the government To Make India stronger In every sense Like-:

• National Employment Guarantee Act -:Which provides At least 100 Days Of Employment On assets Creating To a Unemployed Person
• Our Government also started Public Investment In agriculture And Irrigation By Rural Co-operative Credit system .
• Implementation Of the Min Wage Laws for the Farm Labours Had been Introduced.
• Introduced Integrated Child Development Services which Provides Functional Aganwadis To the underprivileged Children's.
• Introduction of The Antodaya Cards with the Help of which The Govt is able to Serve the food to the Persons who are Below the Poverty Line .
• They Introduced National Manufacturing Competitiveness Council To energise And Sustain the Growth Of the Manufacturing Industries.
• Small scale Industries which are contributing Great Towards The economy Freed From the Inspector Raj and also Indian Govt Provided Them Full- Credit, Marketing and Technological Support.

This Means That We Have All the Ingredients To compete with the emerging Economies of the world, But Still There are Some Bottlenecks in Our System, which we have To Remove and make Our system More flexible and adaptive.. Like

(a)-:Infrastructure-: Access To the Reliable Infrastructure is a Key constraint Which the India Business Is Facing Now a days.

(b)-:Power-: The Power Short-fall In India Was about 11.4 % to the Peak Demand and also manufacturers Used To Face The Significant Power Outages Due to Which They Faces The Approximately Loss Of 9 % In each Quarter.

Country, Power BreakDown, Usage of Generators

India , 11/ Month , 61 %(Manufacturing Firm Owns)

Malaysia, 1/Month, 19%

China , Less Than 5/Month, 27 %

And also The Cost Of Power in India is 74 % Higher than Malaysia and 39% Higher Than China.

(c) Transportation-: Still India Inter-state Highways Are Not connecting all the economic Zones of India, It has Only round 3000 Kilometres Of Four lanes High-way, Also we have to Reduce the Political Intervenes and weak contract enforcements So that To provide the Roads Of Good Quality.

(d) Bureaucracy-: This is in actual the Basket of Issues Ranging from Official Paper Chain To the Corruption in Government sector, by which Most the Project gets delayed.

country, ,Median Time To start a New Business
India, ,89 days
Australia, ,2 Days
US, ,5 days
UK, ,18 days
China, ,41 days
In India Round 14 % of the senior Management Time Is spent in dealing with State Government Officials For various Regulatory issues , a key challenge for us to reduce these delays , and should implement The principles with Transparency and accountability.

(e) Labour Market -: Restriction In Hiring and Firing Of labours are still the key Challenge which Indian Business is facing Now a days, Typical Indian Firms Reported Round About 17 % of the excess Labour Because of the Labour Laws and the Regulation.

(f) Caste system & Reservation -: In India There is still Insignificant Reservation and also the peoples are regional Biased, Because of which Manpower Activities are not been allowed To contribute to Growth Process To the Fullest Extent,
(g) Land Reforms -: Filler ( Cultivator) Rarely owns Land and the owner Rarely knows how to Fill, This Results Massive Under-utilization of Land and the water-resources, And the Growth IN agriculture is Snail-paced Because there is Still Free Lands and Idle Hand

(h) Export-: To sustain The current Boom In Exports, we don't have to over-specialize in Information -technology (IT) as an Major export Item, and reliance on the United states as an Primary Export Market Could Dangerous To us.

(i)Financial Reforms -: Lower Interest Rates Help to maintain Growth Rate At the Higher Trajectory, Each 1 % decline in interest Rate adds about 0.35 % To growth Rate Keeping Other Factors constant.

(j)Corruption-: Corruption in No-more a socio-political issue, Now it has economic implication as well , a unit hike in the corruption Lowers the FDI by 11 % and Revenue GDP Ratio by 1.5% Thus Lowering the GDP growth rate By 1.4%, so a Urgent action Plan is needed TO address Poor-law, weak institution and Lack of Transparency.

It sounds Really Strange that we Know Where The Lacune is , And Still We are Not able to Fix it....And Don't Think Ever That India will Grow Automatically, Indian will Grow Only and Only When We will Grow.

References

-: Reasearch Papers Of IIMs&Indian Financial Institutes