Ever since India got its independence, we are working our economy as per the Five Year Plans. This system of framing Five Year Plans was a good arrangement devised, by which the growth in different spheres could be suggested monitored while functioning and changed if the necessity arose. These mega plans have served us as building blocks of our national economy. A brief overview of these plans would give us a fairly clear picture of our developmental programmes. These plans would also highlight for us the targets set through these fifty years of India’s independence.
The First Five Year Plan came into existence for the years 1951 – 1956. This had a public sector outlay of Rs. 2356 crore – while the actual expenditure was only Rs. 1960 crores. The Private Sector investment was 1800 crores. The chief features of this plan was the spread of community development projects and an effort to raise the living standards of the people.
The Second Five Year Plan was to cover the period from 1956 – 1961. this plan had its set objective in industrialization – the building up of rural India and the enhancing of employment opportunities. Now, in this Plan, the Public Sector outlay was Rs. 4800 crores, and the actual expenditure was only Rs. 4672 crores. The Private Sector investment was Rs. 3110 crores. It was in this period that the National income rose by 19.5 per cent.
The Third Five Year Plan covered the period from 1961 – 1966. This Plan targeted an increase in the national income by about 5% per annum. Besides this, self sufficiency in food and the development of sectors like steel, fuel, machinery and power had become the prime objectives. The public sector outlay was Rs. 7500 croes and expenditures was Rs. 8577 crores. Private sector investment was now Rs. 4190 crores. This plan failed owing to price rise of about 20 per cent, Chinese aggression, Indo – Pak conflict and to cap it all a poor monsoon. All these factors contributed to failure of this plan. The year 1964 – ’65, was declared as a period of ‘Plan Holiday’.
The Forth Five Year Plan was then made to cover the period of 1969 – 74. This Plan had two main objectives. It had ensured that growth would be followed with stability and self reliance.
At this time still another target to be followed was the attainment of social justice and upliftment of the weaker sections of the society. In this plan, the Public Sector outlay was Rs. 15902 crores, and that of the Private Sector was Rs. 8980 crores. It seems that, the target levels were always now being set too high and so, here again the target growth of 5.7% was never achieved.
The Fifth Five Year Plan dates from 1974 – 79. This plan once agains aimed to remove poverty and achieving self reliance. This plan started a minimum need programme with measures for checking inflation. This time the outlay for the public sector was Rs. 3030 crores and the private sector outlay was Rs. 2704 crores. This plan was terminated in the fourth year only i.e. 1978 only. The national income increased at 5.2 per cent.
The Sixth Five Year Plan covered the period from 1980 – 85. This Plan had several objectives like growth rate of the economy, reduction in poverty and unemployment, improvement in the general quality of life. An eye was also to be kept on the growth of population and improvement was to be made in the ecological and environmental assets of the nation. Provising the Public Sector outlay was made Rs. 97500 crores that for and the private sector was Rs. 75710 crores. In the process of this plan period, the national income grew at 5.4 per cent per annum.
The Seventh Plan period covered the years 1985 – ’90. This also targeted growth in the production of food grains, the increase of opportunities of employment and the raising of productivity in all sectors of economy. Now the public sector outlay was Rs. 180,00 crores. In this period many targets were even exceeded. The annual growth rate of GDP was 5.8 per cent as against the plan target of 5 per cent. The production of food grains increased however, public sector savings fell short of the target. The gap between income and expenditure of the Government increased.
The Eight Five Year Plan was from the year 1992 – ’97. This was delayed by two years. This plan had also set for itself several objectives, like the generation of employment, control of population growth, spread of elementary education and the growth of economy, in order to enable the Indian economy to compete with major free markets of the world.
The Ninth Five Year Plan was to cover the year from 1997 to 2002 and has an outlay of Rs. 8,80,000 crores. This plan was rather ambitious.
With an overview of the Indian Five Year Plan we can say that they have undoubtedly been tools in the boosting and the shaping of our economy. We have been able to meet many of the objectives laid down by the plans. These plans have succeeded in building the industrial and economic infrastructure of the country. The growth of the Private Sector can also be attributed to these plans.
These plans have helped us in building ourselves, but, they are not without their limitations and bottlenecks. The major setbacks are redtapism, bureaucratic delays, unstable Governments, misallocation of resources to non priority areas. With these on going hazards, our economy faces a slowdown and thus, the growth rate is now less than 5%. The core sectors are being ignored by planners in the interest of their short term gains.
While making such plans we must remember to project a well balanced plan so that development of infrastructure and improvement of standard of living of the messes go hand in hand. So, in brief, we can say that such plans form a very good and efficient system but such planning should be balanced and must be worked in a systematic way. Goals must be set for all sections of our society and we must ensure that the implementation of these set goals are followed to the last word and it must be seen that the goals must see that all sections of the society grow along simultaneously.
However, down the line, there has been something wrong, somewhere and that is why as we see the economic scenario in India there is a considerable gaping gap between the haves and the Have Nots. This in itself indicates that there has been something intrinsically wrong in our economic policies which have made the rich become richer and the poor become poorer. This not the purpose of any develop in economy. The year’s financial programming must see that the benefits accrue to the poorest of the poor. We have had slogans of Garibi Hatao but, in practice they were just eye catching slogans, not apparently meant to be followed by successive Governments of the last fifty decades. If this slogan had been earnestly worked upon, be sure we would not find this poverty in India, and India trailing behind in the list of third world powers.
Sunday, October 12, 2008
The Economic Liberalization
Let us first consider as to what really does this word of economic liberalization mean. This means in very simple terms, a free market economy. The idea of liberalization endorses to is to eliminate an inefficient and non productive system.
It was during the early eighties that, the need for boosting up Indian economy was first felt. Even though the performance in all sector, the economy had not yet developed an strength to really take off. Moreover, even by this decade of the eighties the benefits of all the development had not yet percolated down to the masses. Economic progress was undoubtedly seen but, it was felt that, it was not enough to propel the engines of growth. While India was still languishing under the pains of undergrowth, the economies of China, Malaysia, Indonesia, Taiwan, and Singapore were performing very well in contrast. There had been a marked rise in their per capita incomes which were enough to provide good standards of living to their entire populations.
At this juncture, the Indian Political scenario changed and in 1989, Rajiv Gandhi came to power. It was he who decided that, now it was high time that India should also come towards a free market economy. The economic front of all hues welcomed this move. The idea was to get rid of an inefficient and unproductive system and bring in a new and transparent economy which would also globally oriented. It was now that imports were liberalized, exports increased, all because an efficient Exim policy. Import of gold was liberalized in the 90s, and it was now decided by the Government to open Indian markets for foreign products and technologies.
After the death of Rajiv Gandhi, there were continuous changes in the political scenario, but these reforms managed to continue. The years 1995 – ’97 witnessed a slow down in the economic growth in the regime of the United Front Government. However, from the year 1998 onwards the new BJP Government of Atal Bihari Vajpayee has to undertake the responsibility of continuing the economic reforms started in the eighties. This present Government of the BJP has done very well by bringing more items for importing, under the category of Open General License (OGP), which is expected to promote more and better dialogue between importers and foreign vendors for their particular items.
This pace of economic liberalization would also show in terms of lay off of inefficient staff of the PSUs. This step though harsh is quite inevitable, e.g. the Government has for decades been paying salaries to useless staff of the National Textile Corporation Mills, a number of sick mills of the NTC may have to be sold off to the Corporate Sector. With a rapid pace of economic liberalization, firms from other countries would fill our markets with quality goods at cheaper rates. The Indian fill our markets with quality goods at cheaper rates. The Indian manufacturer is already feeling the pinch in the Sectors of the computer, textiles, light machinery, consumer electronic goods, and several other consumer goods items.
With the liberalization of economy, it is imminent that, exports and imports would both get an impetus, thus fastening the economic growth of the country.
Let us now analyse how this economic liberalization would help the common Indian masses. This liberalization would enhance the living standards of the Indians in general. The Indian consumer would now have a wide range of choices in television, music system, cars, clothes and textiles and several other consumer products. This has come into being because of the competition with foreign players in India. Computerization is expanding at a very fast speed, and so now, we are producing the best machinery products and services with foreign collaboration. Redtapism is also seen to be reducing, and the once adamant bureaucracy is now seen helping in the growth of Indian economy. The latest techniques in management are now being adapted by us.
Besides these advantages, the Private Sector has also been allowed a free hand in domestic foreign trade. The system of licensing has been liberalized.
Now, the rural masses are also enjoying the advantages of the liberal policies of the Government. All rural areas now have access to colour Tvs, cable network and telephones. The STD and ISD have also reached the interiors of rural India. Besides just these, the rural people are also now enjoying a better standard of living, due to the coming of new and cheaper technologies in the Indian economy scenario refrigerators, TVs, computers, water pumps, health facilities, medicines transport and vehicles are the blessings of this liberalized economy.
This flourishing of a liberal economy of India is of course, not without its drawbacks. The multinationals who have entered the Indian scene, have elbowed away several local competitors from the scene, which has made the local manufacturer suffer heavily as, they have lost the battle in the competition against Multinational Companies. This economic liberalization has opened for us huge vistas of a free market system. In this system, the rich may be able to compete but the 52% of our population that is below poverty line will no longer succeed in getting a Government loan or a grant, so, this small business community will get enmeshed in the labarynth of absolute poverty. Thus, in a way this liberalization of economy will make the poor still poorer.
Thus summing, we can say that, economic liberalization is a slow and cumbersome process. In this process each one of us has to join hands with the state, and learn to waster less and produce more. The state and the individual must move hand in hand do that the nation grows as one single unit. We should not get scared of any of these teething troubles of economic liberalization and continue to go ahead with the process till we get out of the woods and become an economic power like China and others.
It was during the early eighties that, the need for boosting up Indian economy was first felt. Even though the performance in all sector, the economy had not yet developed an strength to really take off. Moreover, even by this decade of the eighties the benefits of all the development had not yet percolated down to the masses. Economic progress was undoubtedly seen but, it was felt that, it was not enough to propel the engines of growth. While India was still languishing under the pains of undergrowth, the economies of China, Malaysia, Indonesia, Taiwan, and Singapore were performing very well in contrast. There had been a marked rise in their per capita incomes which were enough to provide good standards of living to their entire populations.
At this juncture, the Indian Political scenario changed and in 1989, Rajiv Gandhi came to power. It was he who decided that, now it was high time that India should also come towards a free market economy. The economic front of all hues welcomed this move. The idea was to get rid of an inefficient and unproductive system and bring in a new and transparent economy which would also globally oriented. It was now that imports were liberalized, exports increased, all because an efficient Exim policy. Import of gold was liberalized in the 90s, and it was now decided by the Government to open Indian markets for foreign products and technologies.
After the death of Rajiv Gandhi, there were continuous changes in the political scenario, but these reforms managed to continue. The years 1995 – ’97 witnessed a slow down in the economic growth in the regime of the United Front Government. However, from the year 1998 onwards the new BJP Government of Atal Bihari Vajpayee has to undertake the responsibility of continuing the economic reforms started in the eighties. This present Government of the BJP has done very well by bringing more items for importing, under the category of Open General License (OGP), which is expected to promote more and better dialogue between importers and foreign vendors for their particular items.
This pace of economic liberalization would also show in terms of lay off of inefficient staff of the PSUs. This step though harsh is quite inevitable, e.g. the Government has for decades been paying salaries to useless staff of the National Textile Corporation Mills, a number of sick mills of the NTC may have to be sold off to the Corporate Sector. With a rapid pace of economic liberalization, firms from other countries would fill our markets with quality goods at cheaper rates. The Indian fill our markets with quality goods at cheaper rates. The Indian manufacturer is already feeling the pinch in the Sectors of the computer, textiles, light machinery, consumer electronic goods, and several other consumer goods items.
With the liberalization of economy, it is imminent that, exports and imports would both get an impetus, thus fastening the economic growth of the country.
Let us now analyse how this economic liberalization would help the common Indian masses. This liberalization would enhance the living standards of the Indians in general. The Indian consumer would now have a wide range of choices in television, music system, cars, clothes and textiles and several other consumer products. This has come into being because of the competition with foreign players in India. Computerization is expanding at a very fast speed, and so now, we are producing the best machinery products and services with foreign collaboration. Redtapism is also seen to be reducing, and the once adamant bureaucracy is now seen helping in the growth of Indian economy. The latest techniques in management are now being adapted by us.
Besides these advantages, the Private Sector has also been allowed a free hand in domestic foreign trade. The system of licensing has been liberalized.
Now, the rural masses are also enjoying the advantages of the liberal policies of the Government. All rural areas now have access to colour Tvs, cable network and telephones. The STD and ISD have also reached the interiors of rural India. Besides just these, the rural people are also now enjoying a better standard of living, due to the coming of new and cheaper technologies in the Indian economy scenario refrigerators, TVs, computers, water pumps, health facilities, medicines transport and vehicles are the blessings of this liberalized economy.
This flourishing of a liberal economy of India is of course, not without its drawbacks. The multinationals who have entered the Indian scene, have elbowed away several local competitors from the scene, which has made the local manufacturer suffer heavily as, they have lost the battle in the competition against Multinational Companies. This economic liberalization has opened for us huge vistas of a free market system. In this system, the rich may be able to compete but the 52% of our population that is below poverty line will no longer succeed in getting a Government loan or a grant, so, this small business community will get enmeshed in the labarynth of absolute poverty. Thus, in a way this liberalization of economy will make the poor still poorer.
Thus summing, we can say that, economic liberalization is a slow and cumbersome process. In this process each one of us has to join hands with the state, and learn to waster less and produce more. The state and the individual must move hand in hand do that the nation grows as one single unit. We should not get scared of any of these teething troubles of economic liberalization and continue to go ahead with the process till we get out of the woods and become an economic power like China and others.
Corruption in India
The last two decades of the existence of independence, India has seen a steep upward trend in the graph of existing corruption. The media, the public, the variety of forums for discussions and debates for the higher intellingensia are all neck deep buried in highlighting the rampant corruption in every sphere. In this debate the rural folk are also not far behind.
These days they are also very well aware of the malpractices in the highest of levels of all places. So much so that now, the average Indian has reached the highest level of disgust and disappointment at the way things are moving in this country.
Let us first of all understand what is meant by corruption and corrupt practices. In brief, anything that is below all standard norms of morality in a country, is called or defined as corruption and corrupt practices. These norms are a fixed standard in any given society, and when these are broken we say that, a society is getting corrupted. This corruption as we see it today is not a development that has come overnight, it has been a continuous process for the last several decades and, to – day it has seeped into the very blood stream of the system.
What we have to study next is, why and how this monster of corruption has taken such a firm hold on India so much so that, the country of the legendary Harischandra, the honest has reached the position of one of the top ten or so of corrupt countries of the world. This is no mean achievement, and has taken a few decades to fructify. It is not that, corruption did not exist earlier, it is not that to – day there are no honest people, then why do we all yes, I say all feel that, corruption is rampant everywhere and all the time. This is because of the simple reason that this malady has spread through the entire length and breadth of our social fabric and gone down to the deepest levels. How has this come to be? Would be quite a pertinent question.
The corrupt practices have now become our lifestyle to such an extent that, we do not seem to feel that there is anything wrong in what all we are doing., and that things should not be as they are. We, on the contrary are inclined to justify all wrong saying that, without doing wrong we cannot exist or be functional.
When we start thinking that corruption is a must, then I feel that the situation has reached a point of no correction. This present apathy shows how far the degradation of our values have reached, and how low the system has dipped. When we start justifying all the wrongs we do, it is the beginning of the end., as, we are not only doing wrong, we are at the same time thinking that it is correct, then where can the scope be for correction? It would be rather interesting to note and specify as to how this process of continuous degeneration started, for it is the root that grows into a magnum tree. It is thus of great value to know who put the seed that grew into this poisonous tree. In this connection, it is understand that, this degeneration started from the top echelons of society, and then percolated downwards, without a hurdle.
Who is at the top or the apex of our society? It is the set of people who have all the power that is invested in them by, us the people. Now, it is for the goodwill of this top layer of society to give the country’s society the trend it deems fit. Now, this layer at the top has been the politician who rules the country, and to say that the seeds of India’s corruption were sown by this class of our society, which has been at the helm of affairs of the country and today they have brought us t this point of no return as far as corruption is concerned. Where are politicians like Pt. Jawaharlal Nehru, Sardar Patel, and above all, the father of the nation, Mahatma Gandhi? It appears that India has stopped producing men and women of such integrity. Perhapse the breed of such politicians and other men have stopped taking birth. Where is that erstwhile political party, the Indian National Congress, that loyally fought for the freedom of the country, where is the discipline to follow the clarion call of Mahatma Gandhi? All it seems to have been lost, and the same Congress that fought against foreign rule and ousted the foreigners is now all set to install a foreigner as the head of Independent India. What has all this come to, what can be the implications of a foreigner as the head of the state seem to be lost to this Congress which worked to oust the foreigners – what a degradation of values. Have we Indians lost all self respect, that we ourselves invite a foreigner to rule us? I dareasay we have become so immune to all finer feelings that we do not mind doing anything as long as we meet our ends. All this is the ugliest face of the corruption in India.
All our ethics, our self respect and love for our motherland is lost somewhere in the last fifty years. Today we are standing at the threshold of a new millennium with, the eerstwhile Indian National Congress and many other parties without a single leader of stature. What does this show that, in the span of more than century, Congress has failed to produce a single leader, leave alone a leader of the stature of Sardar Patel and the like. Today the sets of politicians of all political parties are just money spinning actors just working to establish estates for their seven generations. The vision of a great India in the yes of the freedom fighters has been lost somewhere in our move in the last fifty years.
When the oldest political party, the Congress presents such a dismal picture of honesty loyalty and service, what can be said or expected from the other much younger political parties. They are all bound to follow the footsteps of this erstwhile conglomerate of greedy money spinning politicians. Today, all the new political parties are following the path tread by the elder brother, the Congress, resulting in a mushroom growth of political parties all of the set pattern with no goals, no ethics, no ideals and no ideologies.
This level being the highest level of our society is seen to have become most corrupt in the last two decades and the public is very well aware of the multi-scam decades of the eighties and nineties. Now, the scenario at the very top, can hardly allow for any space for any honesty to persist in any other layer of society. So, from this topmost layer, corruption has percolated to all levels and in all spheres of activities, and all this sure enough because it suits the politician. The politician has encouraged the bureaucrat to be corrupt, and in turn the bureaucrat has enjoyed the protection of the politician, in all his nefarious activities. From the senior bureaucrat the virus of corruption has slowly and steadily seemed down to the lowest levels of functionaries. This has become a totally corrupt and incorrigible institution.
The Indian society in all its entirety is corrupt to the core, and now corruption is like a drug, without which the addict finds it difficult to survive. With this slow and steady and continuous spread of the fangs of corruption, today the situation is such that, there is no place or activity which is bereft of the fruits of corruption. Now, corruption has become our way of life and to uproot it is a Herculean task.
The tentacles of corruption can be dealt with only with an iron hand, and above all, must start cleaning from the top echelons of society. However, as we have seen umpteen times, this does not happen. Our experience shows that, as soon as a big name is involved in any corruption case, there is a lot of hullabulloo for some time, and it all dies down with the passage of time and the corruption continues unabated. How does this happen? This is very obvious for all those who have to be at the clearing end are bought, so, no damage can ever come to the so called high ups. This is the main reason why there is never any breakthrough in any scam. In this situation it will be a wonder if anything tangible can really be achieved for, the high ups cannot be touched, and the lower formations need not be touched – so we remain where we were at the beginning of any case.
The scams which have come to light in last one decade have amounted to multi – crores, they are being dealt with but, it is so shocking that no politician has yet been punished for siphoning off so much of wealth of a poor country, what can be expected in a country when its protectors themselves become criminals. When the senior can not be punished how can there be any cleaning at the bottom. It would not even be fair to punish the lower rungs of the ladder when the higher rungs continue to bask in the sunshine of their riches. The way in which these cases are being dealt with clearly indicate that no one will be hurt as, all those, yes all those who matter are involved in corruption. So, at present, the situation is of “who will bell the cat?” Everyone knows who the corrupt are but, the irony of our system is such that no one can be touched. If this situation remains any longer, it is a wonder if there could be any light at the end of the tunnel.
India is reaping what it has sown, and the seed of corruption has grown up into a full size magnum tree which perhapse cannot be changed, replaced or cut. It appears thus that for the time being at least, we have to bear with it. Only God can do some magic.
Irrespective of the status of the wrong doer everyone, big or small, high or low, must be dealt with an iron hand, and that also at a fast speed. What is the use of just a show of dealings against corruption, while in reality all cases are just quietly shelved banking on the fact that, public memory is very short. All these cases are just a farce into which now, the Indian public an not be very easily fooled. At present there is no remedy for this tragic situation we are in, except pray to God that, HE gives unto us a dictator who is capable enough to deal with this ogre of corruption with a strong hand or else it appears that we are doomed to drown in the deepest depths of corruption and that, we will soon find it impossible to come out of the labarynth knit around us by our own men – yes our own men
These days they are also very well aware of the malpractices in the highest of levels of all places. So much so that now, the average Indian has reached the highest level of disgust and disappointment at the way things are moving in this country.
Let us first of all understand what is meant by corruption and corrupt practices. In brief, anything that is below all standard norms of morality in a country, is called or defined as corruption and corrupt practices. These norms are a fixed standard in any given society, and when these are broken we say that, a society is getting corrupted. This corruption as we see it today is not a development that has come overnight, it has been a continuous process for the last several decades and, to – day it has seeped into the very blood stream of the system.
What we have to study next is, why and how this monster of corruption has taken such a firm hold on India so much so that, the country of the legendary Harischandra, the honest has reached the position of one of the top ten or so of corrupt countries of the world. This is no mean achievement, and has taken a few decades to fructify. It is not that, corruption did not exist earlier, it is not that to – day there are no honest people, then why do we all yes, I say all feel that, corruption is rampant everywhere and all the time. This is because of the simple reason that this malady has spread through the entire length and breadth of our social fabric and gone down to the deepest levels. How has this come to be? Would be quite a pertinent question.
The corrupt practices have now become our lifestyle to such an extent that, we do not seem to feel that there is anything wrong in what all we are doing., and that things should not be as they are. We, on the contrary are inclined to justify all wrong saying that, without doing wrong we cannot exist or be functional.
When we start thinking that corruption is a must, then I feel that the situation has reached a point of no correction. This present apathy shows how far the degradation of our values have reached, and how low the system has dipped. When we start justifying all the wrongs we do, it is the beginning of the end., as, we are not only doing wrong, we are at the same time thinking that it is correct, then where can the scope be for correction? It would be rather interesting to note and specify as to how this process of continuous degeneration started, for it is the root that grows into a magnum tree. It is thus of great value to know who put the seed that grew into this poisonous tree. In this connection, it is understand that, this degeneration started from the top echelons of society, and then percolated downwards, without a hurdle.
Who is at the top or the apex of our society? It is the set of people who have all the power that is invested in them by, us the people. Now, it is for the goodwill of this top layer of society to give the country’s society the trend it deems fit. Now, this layer at the top has been the politician who rules the country, and to say that the seeds of India’s corruption were sown by this class of our society, which has been at the helm of affairs of the country and today they have brought us t this point of no return as far as corruption is concerned. Where are politicians like Pt. Jawaharlal Nehru, Sardar Patel, and above all, the father of the nation, Mahatma Gandhi? It appears that India has stopped producing men and women of such integrity. Perhapse the breed of such politicians and other men have stopped taking birth. Where is that erstwhile political party, the Indian National Congress, that loyally fought for the freedom of the country, where is the discipline to follow the clarion call of Mahatma Gandhi? All it seems to have been lost, and the same Congress that fought against foreign rule and ousted the foreigners is now all set to install a foreigner as the head of Independent India. What has all this come to, what can be the implications of a foreigner as the head of the state seem to be lost to this Congress which worked to oust the foreigners – what a degradation of values. Have we Indians lost all self respect, that we ourselves invite a foreigner to rule us? I dareasay we have become so immune to all finer feelings that we do not mind doing anything as long as we meet our ends. All this is the ugliest face of the corruption in India.
All our ethics, our self respect and love for our motherland is lost somewhere in the last fifty years. Today we are standing at the threshold of a new millennium with, the eerstwhile Indian National Congress and many other parties without a single leader of stature. What does this show that, in the span of more than century, Congress has failed to produce a single leader, leave alone a leader of the stature of Sardar Patel and the like. Today the sets of politicians of all political parties are just money spinning actors just working to establish estates for their seven generations. The vision of a great India in the yes of the freedom fighters has been lost somewhere in our move in the last fifty years.
When the oldest political party, the Congress presents such a dismal picture of honesty loyalty and service, what can be said or expected from the other much younger political parties. They are all bound to follow the footsteps of this erstwhile conglomerate of greedy money spinning politicians. Today, all the new political parties are following the path tread by the elder brother, the Congress, resulting in a mushroom growth of political parties all of the set pattern with no goals, no ethics, no ideals and no ideologies.
This level being the highest level of our society is seen to have become most corrupt in the last two decades and the public is very well aware of the multi-scam decades of the eighties and nineties. Now, the scenario at the very top, can hardly allow for any space for any honesty to persist in any other layer of society. So, from this topmost layer, corruption has percolated to all levels and in all spheres of activities, and all this sure enough because it suits the politician. The politician has encouraged the bureaucrat to be corrupt, and in turn the bureaucrat has enjoyed the protection of the politician, in all his nefarious activities. From the senior bureaucrat the virus of corruption has slowly and steadily seemed down to the lowest levels of functionaries. This has become a totally corrupt and incorrigible institution.
The Indian society in all its entirety is corrupt to the core, and now corruption is like a drug, without which the addict finds it difficult to survive. With this slow and steady and continuous spread of the fangs of corruption, today the situation is such that, there is no place or activity which is bereft of the fruits of corruption. Now, corruption has become our way of life and to uproot it is a Herculean task.
The tentacles of corruption can be dealt with only with an iron hand, and above all, must start cleaning from the top echelons of society. However, as we have seen umpteen times, this does not happen. Our experience shows that, as soon as a big name is involved in any corruption case, there is a lot of hullabulloo for some time, and it all dies down with the passage of time and the corruption continues unabated. How does this happen? This is very obvious for all those who have to be at the clearing end are bought, so, no damage can ever come to the so called high ups. This is the main reason why there is never any breakthrough in any scam. In this situation it will be a wonder if anything tangible can really be achieved for, the high ups cannot be touched, and the lower formations need not be touched – so we remain where we were at the beginning of any case.
The scams which have come to light in last one decade have amounted to multi – crores, they are being dealt with but, it is so shocking that no politician has yet been punished for siphoning off so much of wealth of a poor country, what can be expected in a country when its protectors themselves become criminals. When the senior can not be punished how can there be any cleaning at the bottom. It would not even be fair to punish the lower rungs of the ladder when the higher rungs continue to bask in the sunshine of their riches. The way in which these cases are being dealt with clearly indicate that no one will be hurt as, all those, yes all those who matter are involved in corruption. So, at present, the situation is of “who will bell the cat?” Everyone knows who the corrupt are but, the irony of our system is such that no one can be touched. If this situation remains any longer, it is a wonder if there could be any light at the end of the tunnel.
India is reaping what it has sown, and the seed of corruption has grown up into a full size magnum tree which perhapse cannot be changed, replaced or cut. It appears thus that for the time being at least, we have to bear with it. Only God can do some magic.
Irrespective of the status of the wrong doer everyone, big or small, high or low, must be dealt with an iron hand, and that also at a fast speed. What is the use of just a show of dealings against corruption, while in reality all cases are just quietly shelved banking on the fact that, public memory is very short. All these cases are just a farce into which now, the Indian public an not be very easily fooled. At present there is no remedy for this tragic situation we are in, except pray to God that, HE gives unto us a dictator who is capable enough to deal with this ogre of corruption with a strong hand or else it appears that we are doomed to drown in the deepest depths of corruption and that, we will soon find it impossible to come out of the labarynth knit around us by our own men – yes our own men
Public finance of India
Let us first understand what is meant by Public Finance. Public finance of country, as is obvious by the name, is the money collection of a country’s Government by way of taxes. The sources of revenue of the States and the Centre are called the public finance of a country, and this is because this amount of money is the money earned by the public and given to the Government for development works, and this is exactly why this money is termed as public finance.
Lately, the sources of revenue of the State and Centre have both declined considerably and the contribution of tax revenue has come down from about 37 percent in 1950-51 to just a 12 per cent in 1993-94. In the case of Central revenue, the direct tax share has declined from 36 per cent to 16 percent, while in the State tax revenue has taken a dive from 38 per cent to 11 per cent. On the other hand, rate of indirect taxes, the revenue has gone up from 14.14 per cent to 14.57 per cent. At this direct and indirect taxes. Direct taxes are taxes levied on the individual for his income, for his purchase etc. On the other hand, indirect taxes are taxes which are levied as extra to the cost of an item, e.g. customs tax. As item which has been bought for say Rs. 1000% is brought to India. There at the customs counter, the purchaser has to pay some extra amount as a tax on the item already bought and paid for. This is termed as an indirect made for the purchase of an item.
As far as India is concerned, in our discussion of Public Finance, we have to consider other points also, such as the distribution of incomes. The distribution of incomes and property in india are at such a variance that, the tax base for direct taxes becomes very very narrow. Besides this, there is a wide range of tax evasion. This problem of tax evasion is being met by the Government by reducing the rate of taxes, on the top of the scale. The real problem in india is this basic problem of tax evasion and it is this only which makes the revenue earnings minimal. This is because the category that can and should give the maximum tax, is just the category that evades tax, which in turn results in revenue loss for the Government. Besides these people which include the highest earning gentry, there are several small business in which there can not be an assessment of the actual incomes, and so, this category also gilts the Government. Thus it may be seen that, in India it is only the salaried class which only is bound to pay the tax regularly and correctly, and this is the class which has the least income. Thus, the poor and the rich classes in India all manage to avoid taxation and thus population. This tax evasion should be dealt with an iron hand, and the richer classes who take the lion’s share of income pay nothing or a nominal tax, should be forced to pay the tightful tax. It would be quite relevant to talk at this point of the VDIS scheme of the Government implemented in 1997, which brought out millions of worth of tax from the rich classes who had all along evaded tax.
There being an evasion of taxes all along, the non-tax revenues have seen an upward trend. This is due to interest receipts on loans given to various sectors for social and economic services. The failure also of a large number of public enterprises to generate surplus, makes this source of public revenue also get depleted.
On the other hand, the total government expenses as a percentage of the GDP has recorded in increase between 1950-51 and 1993-94. Development expenditure has shown faster growth in this period, compared to non-developmental expenditure. The expense incurred on education, health and family planning has been five fold in relation to the GDP, whereas, public expenditure on agricultural and rural development in ten times more than the increase in the GDP, between 1950-51 and 1993-94. Since there has been a faster growth of public expenditure in relation to the revenue, the gap between the expenditure and the revenue has been growing steadily. Though this gap has been encountered by borrowing from the Reserve Bank of India, it has brought with it an increased burden of interest so be paid. The central loan jumped from 2000 crores to 98000 crores between the period of 1950-51 and 1997-98and the interest burden hiked 200 time, over the same period. Even the States are facing a similar debt problem. Even foreign debt has increased at a phenomenal rate, it increased from 32 crores in March 1951 to 11000 crores in 1961 and at the end of 1988, this foreign debt is 23 times more than what it was is March 1961. These deficits of the Central and the State Government are an increasingly depressing phenomena of the Indian fiscal scenario.
Another important phenomena of the India fiscal system is the growing dependence of the State Government on the Central Government which becomes a continuous drain on the central pool of money resources.
To cap all this drawback of India’s public, finance is the worst factor to be encountered and this is the administration of the public finance. The concealing or evading of taxes should be minimal through an efficient administrative procedure. However, estimates show that, the actual tax evasion in India is in some cases even up to ¾ of the actual liability. This attributes to the major chunk of financial loss of revenue and also helps in developing a “parallel economy”.
Even since independence, the Government of India has been continuously resorting to the printing press via the Reserve Bank of India by means of issuing ad hoc treasury bills. The R.B.I. could refuse to print currency notes but it has not done so as yet. It has only pointed out from time to time the problems that can arise by creating paper money, which has all these years fuelled inflation. However successive Indian Government have recklessly shown a deficit graph going constantly up till at last in 1992-93, the deficit amount rose to Rs.12,300 crores. The unchecked Government expenditure mounting higher and higher every year has been the major cause of an unprecedented price rise through the years.
Now if a balance has to be struck in India’s public finances, expenditure of the Government must slashed down, and the mischief of tax evasion must be dealt with an iron hand. Without these who points being followed strictly and immediately, no retrievel of our financial position could be achieved.
Lately, the sources of revenue of the State and Centre have both declined considerably and the contribution of tax revenue has come down from about 37 percent in 1950-51 to just a 12 per cent in 1993-94. In the case of Central revenue, the direct tax share has declined from 36 per cent to 16 percent, while in the State tax revenue has taken a dive from 38 per cent to 11 per cent. On the other hand, rate of indirect taxes, the revenue has gone up from 14.14 per cent to 14.57 per cent. At this direct and indirect taxes. Direct taxes are taxes levied on the individual for his income, for his purchase etc. On the other hand, indirect taxes are taxes which are levied as extra to the cost of an item, e.g. customs tax. As item which has been bought for say Rs. 1000% is brought to India. There at the customs counter, the purchaser has to pay some extra amount as a tax on the item already bought and paid for. This is termed as an indirect made for the purchase of an item.
As far as India is concerned, in our discussion of Public Finance, we have to consider other points also, such as the distribution of incomes. The distribution of incomes and property in india are at such a variance that, the tax base for direct taxes becomes very very narrow. Besides this, there is a wide range of tax evasion. This problem of tax evasion is being met by the Government by reducing the rate of taxes, on the top of the scale. The real problem in india is this basic problem of tax evasion and it is this only which makes the revenue earnings minimal. This is because the category that can and should give the maximum tax, is just the category that evades tax, which in turn results in revenue loss for the Government. Besides these people which include the highest earning gentry, there are several small business in which there can not be an assessment of the actual incomes, and so, this category also gilts the Government. Thus it may be seen that, in India it is only the salaried class which only is bound to pay the tax regularly and correctly, and this is the class which has the least income. Thus, the poor and the rich classes in India all manage to avoid taxation and thus population. This tax evasion should be dealt with an iron hand, and the richer classes who take the lion’s share of income pay nothing or a nominal tax, should be forced to pay the tightful tax. It would be quite relevant to talk at this point of the VDIS scheme of the Government implemented in 1997, which brought out millions of worth of tax from the rich classes who had all along evaded tax.
There being an evasion of taxes all along, the non-tax revenues have seen an upward trend. This is due to interest receipts on loans given to various sectors for social and economic services. The failure also of a large number of public enterprises to generate surplus, makes this source of public revenue also get depleted.
On the other hand, the total government expenses as a percentage of the GDP has recorded in increase between 1950-51 and 1993-94. Development expenditure has shown faster growth in this period, compared to non-developmental expenditure. The expense incurred on education, health and family planning has been five fold in relation to the GDP, whereas, public expenditure on agricultural and rural development in ten times more than the increase in the GDP, between 1950-51 and 1993-94. Since there has been a faster growth of public expenditure in relation to the revenue, the gap between the expenditure and the revenue has been growing steadily. Though this gap has been encountered by borrowing from the Reserve Bank of India, it has brought with it an increased burden of interest so be paid. The central loan jumped from 2000 crores to 98000 crores between the period of 1950-51 and 1997-98and the interest burden hiked 200 time, over the same period. Even the States are facing a similar debt problem. Even foreign debt has increased at a phenomenal rate, it increased from 32 crores in March 1951 to 11000 crores in 1961 and at the end of 1988, this foreign debt is 23 times more than what it was is March 1961. These deficits of the Central and the State Government are an increasingly depressing phenomena of the Indian fiscal scenario.
Another important phenomena of the India fiscal system is the growing dependence of the State Government on the Central Government which becomes a continuous drain on the central pool of money resources.
To cap all this drawback of India’s public, finance is the worst factor to be encountered and this is the administration of the public finance. The concealing or evading of taxes should be minimal through an efficient administrative procedure. However, estimates show that, the actual tax evasion in India is in some cases even up to ¾ of the actual liability. This attributes to the major chunk of financial loss of revenue and also helps in developing a “parallel economy”.
Even since independence, the Government of India has been continuously resorting to the printing press via the Reserve Bank of India by means of issuing ad hoc treasury bills. The R.B.I. could refuse to print currency notes but it has not done so as yet. It has only pointed out from time to time the problems that can arise by creating paper money, which has all these years fuelled inflation. However successive Indian Government have recklessly shown a deficit graph going constantly up till at last in 1992-93, the deficit amount rose to Rs.12,300 crores. The unchecked Government expenditure mounting higher and higher every year has been the major cause of an unprecedented price rise through the years.
Now if a balance has to be struck in India’s public finances, expenditure of the Government must slashed down, and the mischief of tax evasion must be dealt with an iron hand. Without these who points being followed strictly and immediately, no retrievel of our financial position could be achieved.
What is Nuclear Non – Proliferation?
What is really meant by Nuclear Non – Proliferation? In simple explanation, those countries who have accepted the Non – Proliferation Treaty, have accepted the right of a few powers to have and develop their nuclear weapons. On the other hand, the nations that have the view that, nuclear weapons contribute defence of the last resort, believe in the norm of nuclear proliferation. In reality, the majority of the nations of the world have had no say in evolving nuclear norms since this technology was almost unknown to them.
If nuclear Non – Proliferation is the international norm, it is these powers who have conveniently exempted themselves from all inspections and they allow all technology transfer among themselves. Even to-day, the five major nuclear powers do not commit themselves to the ultimate goal of a world that will be free of nuclear weapons. These nations advocate capping of all the non nuclear nations to prevent them from developing their know how and capability. In the comity of nations if some nations continue to keep their weapon laboratories and do not allow any inspection of the same, and also continue to go ahead with their researches in the subject, how can non-proliferation ever become a yardstick or a norm? if the non – nuclear countries are to accept capping their nuclear projects, all the nuclear powers should also be brought under international scrutiny. These double standards in the nuclear race cannot hold for long to any sense of common and natural justice. It is against all norms of natural justice that, the big powers continue to delve in their nuclear projects and the same five powers continue to ask the other nations to stop it all forthwith.
If non-proliferation is to be the norm then why is the united States promoting proliferation of British nuclear missiles? Today if the agreement between United States and Russia was to be implemented a number of weapons with most of the powers will be found to be many times more than what they were when the NPT was signed. Is this how the world is expected to observe the non-proliferation norms?
It is this discrimination among powers of the world which India has been strongly opposed to. India’s view is quite in line with laws of natural justice for India says that, either all powers big and small destroy all their nuclear weapons and simultaneously also stop all work on it, or, all powers, big or small should be allowed to grow into nuclear powers. On the face of it, India’s view is absolutely logical and in all fairness but, the brother the United States of America has been urging India to sign the Nuclear Non – Proliferation Treaty – (NPT). India however feels that elimination of nuclear armaments is a global problem and not just a regional problem. India has been producing plutonium from the mid sixties which means that, India has been having access to weapons material for quite a long time.
If India is not willing to sign the NPT, the United States suggests that, India and Pakistan should hold bi-lateral talks on the nuclear problem and find a solution. The United States has also suggested a Conference of five nations i.e. India, Pakistan, United States, Russia and China. To this suggestion, the response of China was that, it would be willing to participate in the said Conference only if its own arsenal would not be a topic of discussion. On the other hand, India feels that, apart from Pakistan it has to take serious note of the highly developed nuclear arsenal of China. However, besides India and Pakistan, there are more nuclear powers in the Asia – Pacific region, for instance Israel has a nuclear arsenal, North Korea has plutonium production reactor, Japan and South Korea can develop nuclear weapons if they so desire. In general the list of such countries would include Germany, Canada, Italy, Sweden Spain etc., Thus in order to make such a Conference a reality a large number of countries would have to be included, some nuclear states, some nuclear capable states which not have signed the NPT, and also some states that have signed the NPT, but can develop nuclear weapons fairly well.
In this process the initiative was taken by Rajiv Gandhi who foresaw a time bound elimination of all nuclear weapons. However though our ultimate target has to be total elimination of all nuclear weapons we have to prepare a long term plan in the time table. In reality, the United States does not foresee elimination of all nuclear weapons in the near future so, in these circumstances we expect other nuclear weapons States and nuclear weapon capable states also to retain their weapons.
Though the non – proliferation seems to be a distant dream, there are certain elements which may be agreed upon by most countries. Firstly, the Comprehensive and universal test ban, secondly an agreement on ‘non – use’ of nuclear weapons, and thirdly transfer of nuclear technology should be subject to peaceful use provision.
Seeing the Yugoslav situation, the Gulf War, and a lot of other turmoil all over the world the talk of ‘one world’ appears to be quite a misnomer. In such a situation, India can not be expected to dismantle its nuclear capability that has been built up in the span of the last forty years, and that also at the behest of the big brother, the United States wants it to be so. India on the contrary must maintain and also develop its nuclear capability and nurture high technologies. Lessons to be learnt from nuclear energy are of vital importance for developing self reliance, that cannot be overlooked in the hope of much talked of globalization.
If nuclear Non – Proliferation is the international norm, it is these powers who have conveniently exempted themselves from all inspections and they allow all technology transfer among themselves. Even to-day, the five major nuclear powers do not commit themselves to the ultimate goal of a world that will be free of nuclear weapons. These nations advocate capping of all the non nuclear nations to prevent them from developing their know how and capability. In the comity of nations if some nations continue to keep their weapon laboratories and do not allow any inspection of the same, and also continue to go ahead with their researches in the subject, how can non-proliferation ever become a yardstick or a norm? if the non – nuclear countries are to accept capping their nuclear projects, all the nuclear powers should also be brought under international scrutiny. These double standards in the nuclear race cannot hold for long to any sense of common and natural justice. It is against all norms of natural justice that, the big powers continue to delve in their nuclear projects and the same five powers continue to ask the other nations to stop it all forthwith.
If non-proliferation is to be the norm then why is the united States promoting proliferation of British nuclear missiles? Today if the agreement between United States and Russia was to be implemented a number of weapons with most of the powers will be found to be many times more than what they were when the NPT was signed. Is this how the world is expected to observe the non-proliferation norms?
It is this discrimination among powers of the world which India has been strongly opposed to. India’s view is quite in line with laws of natural justice for India says that, either all powers big and small destroy all their nuclear weapons and simultaneously also stop all work on it, or, all powers, big or small should be allowed to grow into nuclear powers. On the face of it, India’s view is absolutely logical and in all fairness but, the brother the United States of America has been urging India to sign the Nuclear Non – Proliferation Treaty – (NPT). India however feels that elimination of nuclear armaments is a global problem and not just a regional problem. India has been producing plutonium from the mid sixties which means that, India has been having access to weapons material for quite a long time.
If India is not willing to sign the NPT, the United States suggests that, India and Pakistan should hold bi-lateral talks on the nuclear problem and find a solution. The United States has also suggested a Conference of five nations i.e. India, Pakistan, United States, Russia and China. To this suggestion, the response of China was that, it would be willing to participate in the said Conference only if its own arsenal would not be a topic of discussion. On the other hand, India feels that, apart from Pakistan it has to take serious note of the highly developed nuclear arsenal of China. However, besides India and Pakistan, there are more nuclear powers in the Asia – Pacific region, for instance Israel has a nuclear arsenal, North Korea has plutonium production reactor, Japan and South Korea can develop nuclear weapons if they so desire. In general the list of such countries would include Germany, Canada, Italy, Sweden Spain etc., Thus in order to make such a Conference a reality a large number of countries would have to be included, some nuclear states, some nuclear capable states which not have signed the NPT, and also some states that have signed the NPT, but can develop nuclear weapons fairly well.
In this process the initiative was taken by Rajiv Gandhi who foresaw a time bound elimination of all nuclear weapons. However though our ultimate target has to be total elimination of all nuclear weapons we have to prepare a long term plan in the time table. In reality, the United States does not foresee elimination of all nuclear weapons in the near future so, in these circumstances we expect other nuclear weapons States and nuclear weapon capable states also to retain their weapons.
Though the non – proliferation seems to be a distant dream, there are certain elements which may be agreed upon by most countries. Firstly, the Comprehensive and universal test ban, secondly an agreement on ‘non – use’ of nuclear weapons, and thirdly transfer of nuclear technology should be subject to peaceful use provision.
Seeing the Yugoslav situation, the Gulf War, and a lot of other turmoil all over the world the talk of ‘one world’ appears to be quite a misnomer. In such a situation, India can not be expected to dismantle its nuclear capability that has been built up in the span of the last forty years, and that also at the behest of the big brother, the United States wants it to be so. India on the contrary must maintain and also develop its nuclear capability and nurture high technologies. Lessons to be learnt from nuclear energy are of vital importance for developing self reliance, that cannot be overlooked in the hope of much talked of globalization.
The Indian Economy Today
The horizon of Indian Economy is presently very bleak and dark, and so has it been for the last fifty years. The slow and sluggish Indian Economy can be attributed to a number of factors that have prevailed in India ever since we got our independence. The factors are many, and they are, recession on the home front, recession in all commercial and industrial playgrounds, and above all these the political instability. All these factors have together led to the complete sluggish growth of the Indian Economy. In this disappointing scenario, the only redeeming feature seems to be the economic scenario on the International horizon, which is also fraught with recession, and it is this that gives India a slight breather.
The fate of Indian economy is largely dependent on the trends of the world economy and it is this world economy that is now in the clutches of the worst ever crisis. The Stock Markets are crashing, industrial production has slackened, political upheavals are a common feature and the decline in exports in terms of important commodities is prevalent on a world wide scale. With all this in the world, it cannot be expected to find India escape unscathed or unblemished.
However, even with all this disappointment all around, we may recover from these painful shocks. Mr. yashwant Sinha, the Finance Minister 1998 – ’99, seems to be very optimistic and believes that, Indian economy would surely revive soon. It would be rather relevant at this juncture to add that, the present financial position of India, is the pent up results of decades of mismanagement of finances, and not a crisis created overnight. Mr. Yashwant Sinha has presented a very compact reform package. A few of the salient highlights of this package are as follows :-
a) The Kar Vivad Samadhan Scheme which is likely to fetch Rs. 30,000 Crores.
b) The FDIs to be doubled.
c) An intervention of the Foreign Exchange Markets.
d) Spending on the infrastructure.
e) Clearing of fast track Projects.
f) Simplified Tax rules.
g) Privatisation of Insurance.
This is just a part of the tax reform package offered for our presently ailing economy. A few facts and figures would now help us comprehend the real scenario.
During the first quarter of the year 1998 – ’99 industrial production has grown by 5.4% compared to 3.7% of 1997 – ’98. The Agricultural production has been rather good. Direct tax collections have grown at 41.1% during April – June 1998. Corporate receipts have also risen by 120%. Besides all this, in order to salvage the economy out of its present unstable condition, the Government has planned to give a major thrust to the Private Sector Projects. The finance sector has also to be restructured, and reforms are to be initiated in the Insurance Sector. Tax and Company Laws are also in grave need for major reforms. Together with all these there has to be a marked increase in the inflow of investments. Foreign Investment norms are also to be set up.
All these plans of revitalizing the Indian Economy would come to nought if the Government at the centre remains unstable or gets changed. It is true that Indian Economy is going through a turbulent time, however, economic observers feel that, the Indian Economy would surely be retrieved, and that, its position and growth will be much better than most of the other economic players of the world. At this juncture since global economy is facing a decline, the interest of the world has been generated in Indian economic growth. The recovery cannot be predicted but, it is a happy trend to see that the Government is working hard towards the cherished goal of an economically strong and healthy India.
The fate of Indian economy is largely dependent on the trends of the world economy and it is this world economy that is now in the clutches of the worst ever crisis. The Stock Markets are crashing, industrial production has slackened, political upheavals are a common feature and the decline in exports in terms of important commodities is prevalent on a world wide scale. With all this in the world, it cannot be expected to find India escape unscathed or unblemished.
However, even with all this disappointment all around, we may recover from these painful shocks. Mr. yashwant Sinha, the Finance Minister 1998 – ’99, seems to be very optimistic and believes that, Indian economy would surely revive soon. It would be rather relevant at this juncture to add that, the present financial position of India, is the pent up results of decades of mismanagement of finances, and not a crisis created overnight. Mr. Yashwant Sinha has presented a very compact reform package. A few of the salient highlights of this package are as follows :-
a) The Kar Vivad Samadhan Scheme which is likely to fetch Rs. 30,000 Crores.
b) The FDIs to be doubled.
c) An intervention of the Foreign Exchange Markets.
d) Spending on the infrastructure.
e) Clearing of fast track Projects.
f) Simplified Tax rules.
g) Privatisation of Insurance.
This is just a part of the tax reform package offered for our presently ailing economy. A few facts and figures would now help us comprehend the real scenario.
During the first quarter of the year 1998 – ’99 industrial production has grown by 5.4% compared to 3.7% of 1997 – ’98. The Agricultural production has been rather good. Direct tax collections have grown at 41.1% during April – June 1998. Corporate receipts have also risen by 120%. Besides all this, in order to salvage the economy out of its present unstable condition, the Government has planned to give a major thrust to the Private Sector Projects. The finance sector has also to be restructured, and reforms are to be initiated in the Insurance Sector. Tax and Company Laws are also in grave need for major reforms. Together with all these there has to be a marked increase in the inflow of investments. Foreign Investment norms are also to be set up.
All these plans of revitalizing the Indian Economy would come to nought if the Government at the centre remains unstable or gets changed. It is true that Indian Economy is going through a turbulent time, however, economic observers feel that, the Indian Economy would surely be retrieved, and that, its position and growth will be much better than most of the other economic players of the world. At this juncture since global economy is facing a decline, the interest of the world has been generated in Indian economic growth. The recovery cannot be predicted but, it is a happy trend to see that the Government is working hard towards the cherished goal of an economically strong and healthy India.
Computer Revolution
The world’s technological horizon is dominated by the computer since the year 1970, and by now, it has entered into every sphere of human existence, and in the last two decades it has taken over charge of all that was once man’s handiwork.
A computer is an electric device which helps in boosting our efficiency and helps us in being more creative by taking up the work of repetition itself. The computer helps us create programmes, communicate and also help us to earn. To day, even in India it is beyond our imagination to conceive of any avenue where computer has not made a dent., may it be in business, banking, publishing engineering etc., This change over to computerization is welcomed by all and sundry but, it leaves one burning question in the minds of people. We are all apt to believe that, computerization is apt to throw men out of employment, no it is not so, this belief is just a misnomer. The reason for this is that, a man who was once doing the job of a clerk would now be able to execute more productive assignments, thus contributing his best to his employer society and the nation. The computer is expected to ensure enhancement of knowledge levels, productivity, earnings and living standards of the society. If India wants to emulate the economic super powers of the world it is necessary for India to completely computerize, and link the Indian economy and industry with International information in a super big way. This can be made possible only with the help of the computer and the Internet networks.
It was in October 1977 that the private sector Internet Service Provider ushered into India. And this was a great step forward, in the growth of telecom and communication industry. This single step is expected to open new avenues of technology in this country, in the next century. The Internet is a complicated web of satellites and cable network connecting millions of computers across the world. With this advent of the computer, information is shared in the form of data, pictures and graphics. The application of the Internet would include surfing, and access to data.
In India there are about 93000 computers linked to Internet so far. The ISPs have to give a bank guarantee equivalent to license fee for one year. In India, the VSNL, i.e. the Videsh Sanchar Nigam Ltd is the only provider of Internet Services. The Internet has come as a storm in the Indian business and industry. Indian manpower is about the best in the world, in about almost any sphere of work. Now we have really arrived into a new world of a global village.
In the Indian context, computerization is absolutely necessary as, tele – communication and satellite imagery are both computer based. Life in urban Indian is dependent on the telephone, E-mail, fax, internet connectivity and cellphone and all these services warrant the usage of the computer, for their operation and maintenance. Even in rural areas the computer can play an important role in crop development, software for seed research, crop diseases, rural industry and rural education. The avenue of rural tele communication has been revolutionized by the computer.
The computer could be of great value in education. This is because all information is stored and managed by computers, and so they become necessary in the modern times and are also accessible to all. India can hope to become a country of world standards, only when it computerizes its economy, business, scientific and all other operations. Only this technology can help India to benefit on all fronts. It is a certainty that the new century would belong entirely to the computer.
A computer is an electric device which helps in boosting our efficiency and helps us in being more creative by taking up the work of repetition itself. The computer helps us create programmes, communicate and also help us to earn. To day, even in India it is beyond our imagination to conceive of any avenue where computer has not made a dent., may it be in business, banking, publishing engineering etc., This change over to computerization is welcomed by all and sundry but, it leaves one burning question in the minds of people. We are all apt to believe that, computerization is apt to throw men out of employment, no it is not so, this belief is just a misnomer. The reason for this is that, a man who was once doing the job of a clerk would now be able to execute more productive assignments, thus contributing his best to his employer society and the nation. The computer is expected to ensure enhancement of knowledge levels, productivity, earnings and living standards of the society. If India wants to emulate the economic super powers of the world it is necessary for India to completely computerize, and link the Indian economy and industry with International information in a super big way. This can be made possible only with the help of the computer and the Internet networks.
It was in October 1977 that the private sector Internet Service Provider ushered into India. And this was a great step forward, in the growth of telecom and communication industry. This single step is expected to open new avenues of technology in this country, in the next century. The Internet is a complicated web of satellites and cable network connecting millions of computers across the world. With this advent of the computer, information is shared in the form of data, pictures and graphics. The application of the Internet would include surfing, and access to data.
In India there are about 93000 computers linked to Internet so far. The ISPs have to give a bank guarantee equivalent to license fee for one year. In India, the VSNL, i.e. the Videsh Sanchar Nigam Ltd is the only provider of Internet Services. The Internet has come as a storm in the Indian business and industry. Indian manpower is about the best in the world, in about almost any sphere of work. Now we have really arrived into a new world of a global village.
In the Indian context, computerization is absolutely necessary as, tele – communication and satellite imagery are both computer based. Life in urban Indian is dependent on the telephone, E-mail, fax, internet connectivity and cellphone and all these services warrant the usage of the computer, for their operation and maintenance. Even in rural areas the computer can play an important role in crop development, software for seed research, crop diseases, rural industry and rural education. The avenue of rural tele communication has been revolutionized by the computer.
The computer could be of great value in education. This is because all information is stored and managed by computers, and so they become necessary in the modern times and are also accessible to all. India can hope to become a country of world standards, only when it computerizes its economy, business, scientific and all other operations. Only this technology can help India to benefit on all fronts. It is a certainty that the new century would belong entirely to the computer.
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