How India can move to becoming a Rich Nation

For any country to be under the tag of a developed nation there are lots of parameters that are required to be satisfied. The parameters include - infrastructure, Healthcare, ease of doing business, employment, investor friendly environment, less Tax, Good Education, Productivity, Advancements in Science and Technology, Automation, Innovation, Raising wage margins of the poor, Less imports etc. India as a country with over 1.4 billion people has its own challenges to become a developing nation – let alone have the dream of becoming a developed one. A lot of politicians believed in making the country an economic super power by 2020 but now have been retaliating and moving the goal to 2050. There are a very few things that we as countrymen can make in making the country better.

Fiscal deficit is the key term for any country which defines the way a country is progressing and more often for a developing country like India, the expenditures are more than the income. The Governments try to offer lots of free schemes for the poor to win votes. Further the Govt. helps poor with free education and healthcare. Deductions are given to people who live below the poverty line to get access to cost reduced food products and fuel subsidy. Thus for a country like India where the people are economically backward, a lot of schemes like this are essential to make the people’s lives better. However, this creates more burden on the Government and its reserves. Furthermore, the interest rates are to be maintained within a certain extent so that the middle class and upper class can borrow money for personal/housing/business from the banks and make use of it. Simply we cannot maintain a higher interest rate so that people will be in burden when they embrace borrowing from the banks.

GDP is a key factor in determining the performance of a nation in a calendar year. If we are good producers, then the scale will go high. The Govt. has come up with ‘Make in India’ slogans so that investment and production can happen in India for both domestic and international supplies. This can bring more employment to the table. A country’s glow depends on how much the people are willing to spend. The spending power takes the board ticking. People should be good consumers in order to increase the supply. The demand-supply curve should be in balance.

As people of this country we should be more focused on improving/increasing the production. China is the World’s largest producer now exporting goods internationally. We should drive the exports – be it Industrial output/Information technology/Outsourcing/Agriculture products/Healthcare – we should be at our feet to keep moving ahead. Exports and More Exports. We should look for potential buyers and try to have industrial production higher by encouraging medium and upper class companies to produce more and more output.

Imports on Gold and Oil must come down. We should stop feeling the need to fill our houses with Gold. It is just another metal and we should be content with whatever we have. We should go for other investment options like ULIPs, Mutual Funds and lessen the imports. We should use public transports a lot and save oil. Most of the foreign nations have come up with Battery/Solar/Bio gas driven vehicles which can be used for shorter distances. We too must embrace this new technology for a cleaner and green nation. Use Oil/Electricity with care and try to reduce the usage as less as possible so that the prices may come down. This will reduce the food/industrial output raw materials prices down. In fact, this has the ability to reduce overall price of all the products we use in our daily life. Use the resources conservatively - especially Petrol/Diesel/LPG/Electricity so that we can reduce the imports and improve the fiscal deficit. By increasing exports and reducing imports we can create a better India.