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Saturday, August 31, 2013

RE: [MTC Global] Fw: Why India's Economy Is Stumbling

A recent study has come out which states that non-development of railways in terms of replacement of diesel engines with electrical engines, new tracks , electrification, fast speed trains, rationalization of fairs instead of loading goods tariff making it uncompetitive in comparison to road transport, resulting in massive development of road transport pushed the consumption of petroleum which is main source of drain on our foreign exchange earnings. Lack of respectable and fast public transport pushed people towards using cars and two wheelers even at a higher cost. Situation seems to be going from bad to worst. Unless there is a control on import and consumption of petroleum (whichever way you do) no amount of so called reforms are going to help.

Regards

Virendra Goel

 

From: join_mtc@googlegroups.com [mailto:join_mtc@googlegroups.com] On Behalf Of Vijay Kane
Sent: Saturday, August 31, 2013 8:56 PM
To: join_mtc@googlegroups.com
Subject: Re: [MTC Global] Fw: Why India’s Economy Is Stumbling

 

Very interesting observations

In retrospect [unfortunately only in retrospect ] some reasons are obvious

 

Development took place in areas where it was possible to bypass the structural problems.

 

for example --

1] Our labor law reforms  -- We have a very large pool of low skilled labor. but it is "guarded by archaic laws which presume that labor and management

 are enemies of each other" 

a] IT sector progressed as it was not hampered by these archaic laws.

Imagine  where would be IT sector if  shackled by these   laws

b] Manufacturing sector succeeded partially by using contract labor and partially by mechanizing low skill jobs

 

2] Another big stumbling block -- Lack of availability   consistent electric power -- To some extent it was bypassed by captive power generation to fill the gaps.,

I was amazed to read that majority of mobile towers - there are literally thousands of them --   use diesel generators [ consuming colossal amount of  diesel] 

Also by extensive use of "third shift " which is supposed to be used for contingencies only 

 

There are other blocks  --- I am not knowledgeable enough to comment on them  - how ever things might not be much different.

 

Progress took place in spite of government. Government did its best to squander the generated surplus [ rather than reinvesting for productive purpose]

  for political gains

 

V A Kane

Associate prof Mech Engg

Marathawada Inst Of Tech

Aurangabad

Maharashtra

 

 

 

 

On Sat, Aug 31, 2013 at 12:08 PM, Satish Oberoi <oberoi50@yahoo.com> wrote:

 

 

 

 

The New York Times

August 30, 2013

Why India’s Economy Is Stumbling

By ARVIND SUBRAMANIAN
 
WASHINGTON — FOR the past three decades, the Indian economy has grown impressively, at an average annual rate of 6.4 percent. From 2002 to 2011, when the average rate was 7.7 percent, India seemed to be closing in on China — unstoppable, and engaged in a second “tryst with destiny,” to borrow Jawaharlal Nehru’s phrase. The economic potential of its vast population, expected to be the world’s largest by the middle of the next decade, appeared to be unleashed as India jettisoned the stifling central planning and economic controls bequeathed it by Mr. Nehru and the nation’s other socialist founders.

 

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