Needed, a single-minded effort to elevate India

It has become a fad for some opposition leaders to repeatedly belittle India saying that we are still a three trillion country while our neighbouring country China has become a 10 trillion economy. This noise becomes louder as the elections approach. The first and foremost question the leaders who shed election tears that India's GDP is still much lower than China should answer, what was their contribution to the nation's economy to make India a 10 trillion economy?

Is it not a fact that they continue to push the states into debt trap and allege that India is not moving as fast as China? They vie with each other in giving freebies without taking measures to generate enough revenue to bear the burden of the freebies. Some of them are too good to indulge in glib talk saying they are best in terms of ease of business. But they have not been able to control high corruption. Normally the system should work but in administration rules, regulations etc are only on paper while in implementation, corruption takes centre stage. 'Paisa hai toh sab kuch hoga.'

With the country having gone into election mode, leaders of different parties have started holding parleys and some say there would be a sensation in next two or three months. Those who have been criticising the Centre of having failed in all aspects in last eight years say that Modi's 8 Saal, 8 Chaal, aur BJP Sarkar Viphal should explain if they had no role in poor GDP. If these leaders have innovative ideas which can catapult the country into a high-speed growth engine, why did they not implement them in their states and make them the best states? Under our economic and political system, Centre would grow faster if states grow. Can these leaders who talk about the growth of China into a 10 trillion economy explain why and how Chinese economy had grown? What are the pros and cons in investing in that country? What are the social security measures in place in that country?

The main reason for the growth in Chinese economy is that the government there had given top priority to innovation in economic planning. It had taken number of high-profile initiatives like 'Made in China 2025.' Our great politicians swear in the name of China but make fun when Modi government came up with the similar concept 'Make in India.'

China identified 10 key sectors and fixed a target of ten years to achieve 'Made in China.' These 10 sectors have been given extensive government assistance to make the country a global player in those sectors. China has made industrial policies as the tool to reduce dependence on foreign technology and finally dominate global markets.

It is a different issue that that China had a protracted and escalating trade conflict with US. The communist country is yet to fully transit into a free-market economy and this has led to economic policies which US feels is harmful to their interest.

China's economy remains strictly controlled by its government and it faces accusations of unfair dealings, falsified data, violating intellectual property rights. But still it is driven by industrial production and manufacturing exports. This resulted in the high GDP and has become a country with huge purchasing power.

As China began to open, its growth was fuelled by growth of manufacturing and urbanisation. It took nearly forty years to emerge as a economic power.

Though China extracts coal, iron ore, oil and gas, gold and salt, it has been fast moving towards renewable resources and is poised to use more of natural gas in the years to come. Here in India, we give lectures on renewable resources but when it comes to implementation, we convert it into a political weapon to attack the previous governments and the measures they had taken to promote renewable energy. We do not believe in sustainable development and are more bothered about electoral benefits rather than fuelling economic growth.

China had become a destination for investors. Several global companies have utilised the advantages of doing business and China earned its place in international trade from agriculture- based economy to top tech driven country. A lesson we need to learn. Lectures at various platforms wont help.

We need to earn the credibility about our claims and show in practice that India is investor-friendly and that the red tapism and bureaucratic delays are minimal. If the country can clinch the deal in about sixty days from the time an investor lands at the airport lounge, then we can call ourselves progressive. Do we have such work culture?

Scientific and technological innovation has played an essential role in promoting China's economic development and from being a technology user, it has now turned into a technology producer. Innovation has been its driving force for economic growth.

Government policies are getting better and more favourable toward foreign companies. Its 14th Five Year Plan 2021-2025 promises to further focus on growth in international trade with innovative landscapes. It aims at making China a manufacturing powerhouse.

It is also now recognised as country with work ethics. They value hard work. They have goal oriented, professional people who want to excel. There are of course several cons and possible risks and disadvantages of doing business in China alongside the benefits.

Though China has huge market, the language is difficult to learn. This would necessitate hiring the services of a translator. While language is a disadvantage for the investor, it becomes an advantage for the country since it provides job opportunities.

It is also pertinent to understand the Chinese social welfare system. It targets urban residents, farmers, employees of township enterprises, immigrants from rural areas who are not covered by other social welfare programmes. Even within cities, social welfare system doesn't cover all employees. Only SOE employees are all covered by social welfare system. Moreover, the current social welfare system is designed for full-time employees, not part-time workers. Therefore, current social welfare system has a narrow coverage for only limited number of citizens.

The big question is does India have that kind of eco system which can fuel the country into a major competitor to China? First and foremost, we need a conducive political atmosphere where all states should vie with each other in attracting investments by creating necessary growth atmosphere. That is the biggest challenge faced by India. Our political system still centres around caste politics and freebies to get votes rather than encouraging speedy industrial growth.

While the spirit of federalism should not be disturbed, the states and centre should discuss and arrive at one national policy for attracting investments and states should take all necessary measures to create an atmosphere which can attract the investors from across the globe.

Only then showcasing the advantages of each state at forums like Davos makes sense. What is happening now is our leaders are attending economic forums, meeting Indian investors and industrialists and entering into MoU's there. Such forums should be used to attract more and more of outside investments.

If we are not able to do it on a large scale, certainly there is something which we are lacking. It would be better if all the states and centre sit together and put their political differences on back burner and come up with policies that would make India the most favoured destination for investments.

That would be real sensation in Indian politics. First the leaders need to change their mindset and realise that country stands first in terms of priorities. One nation, one goal and united effort is what is required most.