India’s opportunities
By 2030, India will have a working population of one billion, which is more than the entire G-8 population; today, it has Internet coverage almost equal to it.
India’s per capita mobile data consumption
As recently as eight years ago, it was one of the lowest in the world (122nd).
Today it is ranked at one, more than that of the U.S. and China combined, which is helping take prosperity to every nook and corner of India.
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India’s infrastructural developments
It is a significant success, and its multiplier effects — benefits will reverberate in the next five to 10 years for these are long-gestation projects.
Infrastructure spend has shot up, while fiscal prudence has been maintained.
Combination of carbon tax on fuel coupled with a coal cess and an infrastructure development cess, found enough savings to fund at least a part of the rail, roads and ports expansion.
Because the infrastructure being built was green-friendly and the tax was on non-green items.
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The fuel subsidy has come down from about ₹50,000 crore in 2015 to just ₹7,000 crore now.
And if extrapolated on a rising GDP, then the savings would be of the order of $9-$10 billion.
Role of PRAGATI, or Pro-Active Governance and Timely Implementation
Even a mere listing of a project on PRAGATI (the monthly review of every Union, State government stakeholder by the Prime Minister) makes officials issue long-pending government orders or clearances, and generally positively smoothens the system to ‘debottleneck’ infrastructure.
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Role of PRAGATI, or Pro-Active Governance and Timely Implementation
A lot of preparation goes behind each PRAGATI review, across departments and States, to ensure that there are decisions (and not dilly-dallying), which is what is making infrastructure delivery happen.
Alongside it, GatiShakti, a Geospatial Information Systems overlayer powerful tool prevents unnecessary and random cutting of roads and forests, saving time and resources.
Further, for the first time, the private sector was allowed into commercial coal mining, leading to Odisha, West Bengal and Chhattisgarh, reaping huge rewards.
While no new oil exploration contracts were awarded between 2010-17, by 2023-end, five lakh square kilometres will be under exploration contracts.
Role of Public Financial Management System
Money for mega infrastructure spend.
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Role of Public Financial Management System
It is a centralised transaction system to improve the transparency, accountability, and efficiency in government financial spending and to plug waste and leakages.
A centralised core database integration of different platforms with banks,
Thereby enabling direct payments to beneficiaries,
Reducing time and cost while enhancing efficiency.
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Impressive progress has been made on road construction across India.
Parivahan system – which is a one-stop system for transport across 1,400 transport offices, enabling leakage proof revenue collection through the registration of vehicles and licences.
India gets $100 billion in remittances and at around 20 million migrant population.
India is better compared to overall global migrant population of about 280 million.
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Today, it stands shoulder to shoulder with the G-8, as an equal.
Way forward
India needs to give up its non-alignment hang-ups of the past and measure each situation on its merit and national interest, like it did with Russian oil.
India needs greater digitalisation of internal processes and better services delivery using India Stack.
Revive stalled agriculture reforms.
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Build up supply chain capability.
Move manufacturing to India as companies look for other homes outside China.
Carry out deeper judicial reforms.
U.S. capital and technology can help India many of the following areas.
Balance of trade deficit
Almost 50% of India is still stuck in agriculture and manufacturing remains stuck at 14%-15% of GDP.
India needs critical U.S. help to modernise and build its own capabilities in defence too.
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