A BUDGET FOR YOUNG INDIA
By Adhvith Dhuddu
(Op-ed as appeared in Business Line Hindu)
There is much talk and anticipation surrounding the rejuvenated UPA’s interim budget expected in early July. While everyone’s discussing tax slabs, agricultural subsidies and fiscal discipline, it’s equally important that our Finance Minister focuses on presenting a budget with Young India in mind.
The demographics of our country calls for such progressive policies and young Indians have high expectations from a UPA that is partially spearheaded by Mr Rahul Gandhi and his young brigade. After all, young voters were crucial to the UPA’s thumping victory.
The 5 Es affecting young India are Education, Employment, Entrepreneurship, Environment and Energy.
Employment: Given the gloomy state of employment, tackling the labour problem first could mitigate fears of a prolonged slowdown with high unemployment. Thousands of graduates are added to an already strong Indian workforce each year, and if hiring does not gain momentum soon, it could be a source of problem for the Government.
The Finance Minister should consider providing temporary tax incentive to certain labour-intensive sectors (such as retail and manufacturing) which can have an immediate impact and alleviate some pain. But decisive and far-reaching action is needed soon or we could see many unemployed and disgruntled young graduates.
Education: The HRD Ministry has been asleep at the wheel for the last five years, adopting regressive policies when it comes to education reform. Caste and class have taken centre-stage for too long, overshadowing merit. Aimlessly increasing allocations and earmarking crores for more institutes will not ensure quality unless the ineffective command-and-control structure is comprehensively revamped.
Colleges and universities are not being allowed to make swift changes to meet 21st century requirements, and adding salt to our wounded education sector are laws that prohibit foreign universities, which are lining up to invest in India.
Mahatma Gandhi once said, “The youth of the nation is the salt of the country.” Our HRD Ministry’s inability to act is driving away thousands of talented and passionate students to other countries for graduate and postgraduate studies. If the Congress-led UPA is smart, it will enact extensive education reforms to leverage the favourable demographics of this country.
Entrepreneurship: A lot is said about the transformational reforms in 1991 that vaulted India into the global arena. But what Mr Manmohan Singh and his team did then was very simple: they provided an extremely conducive environment for entrepreneurship, which led to expansion in industries, innovation, employment, an enriched population and an active electorate.
The time is ripe for another entrepreneurial revolution, and policies favouring it. Even today corruption is rampant, capital is expensive, contracts are arduous to enforce and it’s tough setting up an enterprise. India ranks a dismal 122 out of 181 in the ease of doing business report published by the World Bank. The reforms in 1991 have shown us the right way; right policies today can foster entrepreneurship in a young population that will be the employers and employees of the future.
Energy: Energy consumption by individuals and industries is set to soar to unprecedented levels in the coming decades. Whether it is petrol, diesel, LPG or kerosene, it is critical to secure our energy future. Protecting and strengthening energy infrastructure is primary but, simultaneously, energy generating capabilities must be expanded. The Government should create a positive environment with sops for renewable energy projects and companies. Instead of choosing wind energy over solar or hydroelectric power over ethanol, we should adopt an all-of-the-above approach and promote all renewable energy companies.
The West has realised this and is rigorously trying to expand renewable sources of energy. We should create an energy infrastructure that is home-grown and self-sustaining. This issue is at the heart of every young Indian’s priorities, as energy shortages and rising prices loom ahead in the absence of long-term energy policies.
Environment: Although it may appear inconsequential at present, we will only be cursing ourselves (and our previous governments) in 2030 and 2040 if we fail to formulate and enforce concrete environmental regulations. India has experienced rapid industrialisation in the last 15 years and the pace is expected to increase in the coming decades.
The least we can do is leave the coming generations a clean and green environment. As Thomas Friedman points out in his book Hot Flat and Crowded, the 21st century will belong to leaders in Energy Technology. Energy and environment are strongly correlated and can be addressed through an all-of-the-above approach to renewable non-polluting energy.
With the right kind of policy focus, the Government can whet the youth’s appetite and simultaneously put the nation on the fast track to growth.
(The author is an asset manager and professional trader)
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