We are poor because our percapita is still 2300usd compared to global average of 10000usd and advanced economies average of 40000usd.
Our companies are too small on global scale. There profit margin serving a rather poor populace are also very thin.
We need to stop comparing ourselves to USA where corporate are powerful and profit margins are very high. We are too far behind to worry about inequality etc. That's luxury of rich countries. .
We need jobs , skills , industries , infrastructure .
Our companies need way more capital to be globally competitive and to generate wealth.
This is time for wealth creation , we can worry about redistribution when our percapita is 40000usd. Till then let's just focus on growth .
Few things .
1. Average world gdp per capita is about 12500 USD if the growth has been 4%(2.5% real growth and 2.5% average inflation during the 2 year period and 1% population growth)
2.The IMF ADVANCED ECONOMY with lowest per capita income is ESTONIA and that has a GDP per capita of 25000 USD.
I was expecting more lenient fiscal def targets provided how they have managed to keep the targets in check for last 3-4 years and central government debt has been kept under control as well.
They could have gone all out on growth and fiscal deficit.Cutting down taxes for income is good but they should have streamlined the GST and have capped the highest tax rate at less than 18%.That would have helped increase urban demand.
Modi's plan to double farmers income between 2017 and 2022 is impossible to meet unless there is ridiculous amounts of growth in that sector but given how it has saturated its impossible.They only way it can be done is by decreasing the numbers of farmers(not through suicides) and making farming and agriculture a profit based industry.Most farmers in this country dont have enough land tor tech to create wealth.We seriously need industrialized farming to boost the credit growth.This will also help banks create more assets.Now simultaneously we should also industrialize rapidly especially norther states(UP BIHAR JHARKHAND WB ODISHA).What will happen is that as more people will leave farming to join industries it will free up resources to those farmers who'll most probably apply for credit through banks and create an asset for banks.So they'll be more productive and there will be less competition and they will earn well enough to pay off those debts.Daily wage labourers can also be absorbed in the industries.
For this firstly remove every bottleneck in that sector,from free money supply through KISAN credit card or through subsidies or through KISAN samman nidhi or through free electricity or through loan waivers.
If their is overproduction then export it or make use for it through other means like pickle or wine industry(people pay ridiculous sums of money for that,ask me i am a bihari{dry state nibba wasi}).
Our women must be educated and skilled to join the workforce to be contributors and benefactors of growth.Our current workforce as population is less than 40%(520 million labour pool out of 1350 million total population).Considering the relatively younger age of the population this is a pathetic number.Even for a country like china(which is old as fuck) has a labour participation rate of over 55%.I am absolutely sure that we can have a 60%+ labour participation rate and more people joining the work force creates a sort of multiplier effect and boosts growth.
