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Monday 17 February 2014

BJP plan to push India into big league

Monday, 17 February 2014 | Deepak K Upreti | New Delhi

If voted to power in the forthcoming Lok Sabha polls, the  BJP will set an ambitious target of 12 per cent annual growth for India by pursuing “more vigorous market-centric economic reforms”. The BJP-led Government will also  break free from inter-State “economic barriers” to create “a national market” by removing “irrational restrictions” like sales tax in inter-State movements.

The party will recommend that savings be encouraged at the national level and income below Rs 1 lakh per month (that is Rs 12 lakh per annum) be made  “tax-free.” All savings would be “tax-deductible” and losses of tax would be offset by “auctioning of natural resources”, sources told The Pioneer. The recommendations are part of the BJP’s Vision 2020 that seeks to completely dismantle the existing model of planning and replace it with ‘aggressive market economy’, particularly at the State levels.

The Sub-committee on  the Vision 2020 panel met on February 13 at the residence of former BJP president Nitin Gadkari. The meet  was attended by senior party leader and former Commerce Minister Subramanian Swamy,  the convenor of the committee. The meeting was also attended by representatives from ‘Aarth Kranti”, an independent economic think tank and RSS thinkers. Gadkari is heading the BJP’s Committee on Vision 2020 which will be released ahead of the 2014 Lok Sabha poll and be part of party’s election campaign agenda.

“The financial draft of it will be ready in a week’s time,” sources said.  The  financial chapter of the Vision document advocates an all-round “second-generation reforms” to improve “quality of governance and accountability” that would sustain the growth to be generated by an open competitive economy. This growth rate could take India “to the league of the top three nations of world” if governance norms are properly enforced, says the economic part of the draft 2020 authored by Swamy. The panel may also examine ways to incorporate political or economic inputs available in the public speeches of BJP’s prime ministerial candidate Narendra Modi.

“A 12 per cent GDP growth rate per year which will mean a doubling of GDP every six years, and that of per capita income doubling every seven years,” says the party’s draft economic document. “This modest growth would take India at par with the US and China by 2020 and overtake China in the next two decades,” maintains Swamy .

Saying that India is not yet an economically developed nation and to be so, its GDP will have to grow at 12 per cent  per year for “at least a decade”, the draft claims that technically this is within country’s reach and these goals can be attained by increased FDI and by use of IT software in domestic industry. “But for that to happen, a more vigorous market centric economic reforms to dismantle the vestiges of the Soviet model in Indian planning, especially at the provincial level is required,” maintains the document.

The document seeking “to fix” the Indian financial system that “suffers from a hang-over of cronyism and corruption that have brought the government budgets on the verge of bankruptcy and therefore”. It says the country’s infrastructure requires about $150 billion dollars to make it world class, and the education system needs 6 per cent of GDP instead of 2.8 per cent today. “Obviously, a second generation of reforms are necessary for all this,” it goes on to conclude, adding “these goals thus have to be at the core of the economic agenda for the rest of this decade for a new Government in 2014.”  

Source: http://www.dailypioneer.com/todays-newspaper/bjp-plan-to-push-india-into-big-league.html

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