Wednesday 11 February 2015

Converting Potential into Real
India is potentially a first rate industrial nation, like North America, Europe or Japan, but it is not so in reality. In reality we are are a poor country, with massive poverty ( in 75% of our 1250 million population ), massive unemployment, massive malnutrition ( in 50% of our children ), almost total lack of healthcare and good education for our poor people, widespread corruption, farmers' suicides etc.
 Why is this so ? How can we convert that potential into a reality ? Unless we do so we shall remain condemned to poverty, and will never get respect in the comity of nations.This is what we shall consider here.
To become a first rate industrial power three things are required : (1) Massive and widespread industrialization, (2) A huge source of raw materials, and (3)High purchasing power in the masses so as to provide a large domestic market.
Regarding the first requirement, it may be pointed out that India of today is not the same as India of 1947 when we became independent.
 In 1947 India was still mainly a feudal and agricultural country. The British policy was to keep India broadly unindustrialized, because if we had become industrialized Indian industry would become a powerful rival of British industry, and businessmen do not like competition. So under British rule only textile and plantation industries were permitted, and these too were mainly British owned. We were not permitted to set up heavy industries like steel and iron ( except a small Tata plant ).
 Consequently in 1947 when India became independent we had very few industries and very few engineers and engineering colleges.
 Today the situation is totally different. Thanks to the vision of Pt.Nehru and his colleagues a heavy industrial base was created in India, and that led to mushrooming and spread of many other industries too. A large number of engineering colleges and technical institutes were also set up, including first rate engineering colleges like I.I.T.s.
 So today we have a large number of industries in India, and thousands of very competent engineers, technicians, scientists and managers. In fact many of our engineers are manning Silicon Valley in U.S.A. and Indians are Professors in many science, engineering and mathematics departments of many Western Universities, Colleges and institutes. Therefore the first requirement of becoming a first rate industrial nation is met.
The second requirement is to have immense raw materials, and that too we have. India is not a small country like England, France, Germany or Japan. It is almost a continent. We have everything we need, coal, iron ore, chromite, zinc, copper, non-metallic minerals e.g.phosphate, dolomite, gypsum, garnet, vanadium, limestone, etc and even uranium for nuclear plants.. It is true that we are importing 70% of our oil, but by scientific research I am sure this problem too can be solved. U.S.A. has recently solved its shortage in oil by discovery of shale oil deposits, fracking technology, etc ( because of which world oil prices have crashed ) and we can do the same, if we have the will.
 The problem is really with the third requirement.
If we wish to have a large and widespread industry in India we must have a huge domestic market so that the goods produced may be sold, and that means that the Indian masses must have high purchasing power.
  I have emphasized a domestic market, because reliance on foreign markets is very precarious. It may be captured by some other nation, or may cease to exist or contract due to recession in that foreign country, and then our export bindustries will close down. So to have stability we must mainly rely on our domestic market.
 So everything comes down to this : we have to find ways of raising the purchasing power of our masses, The problem is not how to increase production. That can easily be done with our huge pool of engineers, scientists etc and immense raw materials. The problem, i repeat, is how to raise the purchasing power of our masses, so that the goods produced are sold.
 It is here that our creativity is required. All of us have to think seriously to find a solution to this basic problem, and for doing so we must use our creativity.
 Don't ask me for the solution, use your brains and find it yourselves .


  1. We can just create money(i suppose by taking huge credit from RBI) and then do a direct cash transfer to all the population(through bank accounts). This will give rise to inflation(obviously)but will affect none(since all have got money). Critics will argue that dis is not economic justice, but once huge demand is created, justice will automatically play out as the deserving ones will get high salary jobs as per their productivity!

  2. i read and follow ur views .

  3. i read and follow ur views .