Having said that, one must give it to the Plan panel to have pulled the cat out of the bag and tell all in the government that the situation is grim. Often criticised for printing bulky volumes of five-year Plans over the last many decades, the Planning Commission seems to have taken a different approach in drafting the Five-Year Plan starting this financial year.
One would now like to imagine that Yojana Bhawan pundits have rolled up their sleeves and got down to the nuts and bolts of this policy logjam. It is learnt that the over-riding theme of the 1,000-page draft Plan document that is split into three volumes is the “mis-trust” that people have in the very process the government adopts to address issues. This is a fundamental problem and digs into the core areas of governance, accountability and transparency that any polity must provide.
For example, a big reason for the dramatic growth slowdown is power plants not getting coal. Even if they did get the needed fuel, power producers are unable to sell electricity at a remunerative price because India has largely bankrupt buyers – the state electricity boards. So, making fuel available through a transparent process and reforming the distribution end are critical for growth. The nuts and bolts therefore are how to sort these two issues out.
Having said that, it is also true that policy logjam is as much about a freeze in government decision-making that we haven’t seen for decades as it is about a negative sentiment that has engulfed much of Corporate India that has stopped investing. And the latter is often extremely volatile in India. It is largely upon the government to take quick decisions to change the sentiments and give an immediate boost to the economy, but in the longer run, India must start taking fast and giant steps to evolving a transparent and just governance regime.
We do not have good roads, We do not have a basic equitable standard of living We do not have social security We do not have good electricity Our PDS is all shot.. Our foodgrains rot while children die of hunger Our economy is in shambles thanks to so called Harvard economics You think FDI in retail will cure this FDI in retail will ensure that Forign companies will dictate what you can consume..and it is necessarily not what you want to consume..British started off as a tax collector and ruled us...now corporate rule will be complete with FDI in retail. Our system is so endemic with co*rr*uption, every so called "reform" in the past you think has failed.. This is another scam..what can be reformed over this..?? We actually lose everything... Do you have the courage to to "manage co*rr*uption?"