INDIA, MY PERCEPTIN

M. RAVINDRANATH

D. No. 23-34-45,
Manepallivari Veedi,
Lakshminagar, Vijayawada-520011
 I humbly dedicate this book to
my beloved parents and metarnal
grand parents.
 CONTENTS

Page
PREFACE I-III

ANCIENT INDIA(EARLY HISTORIC ERA) 1-4

KNOLEDGE OF THIS ERA 4-6

CULTURE OF THIS ERA 6-8

MIDDEVAL INDIA 8-12

PRE INDEPENDENT INDIA 12-13

INDEPENDENT INDIA 13-15

MODERN INDIA 15-19

DREAM OF INDIA 19-20

MAJOR CONSTRAINTS IN REACHING THE GOAL 20-24

Infrastructure 24-44
Agriculture 44-58
Power structure 58-65
Industrial Development 65-67
Role of judicial system 67-76
Corruption 76-107
Role of politics 107-120
Indian policing services 120-125

Militancy/Terrorism 125-128

Indian Tax systems 128-136

Democracy 136-141

Black money in circulation 141-146

Inter Governmental disputes 146-152

Internal security and Armed forces 152-154

Natural calamities 154-157

GREATNESS OF INDIA 157-173

BURNING ISSUES OF INDIA 173-174

Social issues 174-176

Peoples’ responsibilities 176-180

Employment 180-187

Corruption 187-189

Politics and Elections 189-195

INDIA’S PERSPECTIVES IN COMING YEARS 195-203

 PREFACE Page I
I had an opportunity to read the book
‘Ignited minds’, written by Dr. APJ Abdul Kalam,
ex-president of India in which he targetted
young Indians especially school children to
motivate and inspire them to think, dream,
work hard and exploit the potentiality of India
to make his dream of seeing India as developed
country and Vision 2020 a reality. I donot know
whether the youngsters’ minds are ignited or
not but the time limit he dreamt is getting
nearer. Unfortunately I am not an young man
to react seriously but his book inspired me to
think and think why India could not achieve the
expected development to reach the status of
developed country. Apparantly a common man
feels that the poverty, illiteracy, corruption and
politics are the reasons for the poor growth and
development of the country. Dr. Kalam tried
his best through his interactions with nearly a
lakh of students by stressing on the human
values, need to dream, need to work hard,
making people united, change of mindsets,
start moving and to have constructive ideas in
order to achieve the goal of making India a
developed country. I started reviewing several
articles and reviews of intellectuals, economists
and experts and learnt that there are many
more factors that are responsible for the poor
performance. This book is dealing with those
 Page II
factors in a modest way. To enthuse reader with
an exitement the glory of prehistoric India and
present positive developments of India are also
covered in this book.
The state of affairs, incidents, efforts on
the part of Government, challenges and
unfulfilled aspirations occurred under the
umbrella of democracy are more dippressive
than impressive in spite of glorious history India
had. The events that are experienced by all
Indians day to day are disturbing, alarming,
worrying, upsetting, distressing, disconcerting,
troubling and frightening. It is felt worth to
analyse the impact of factors like poor
governance, sustained poverty, slow pace of
literacy, selfish attitude of public and people
at all levels, segregation of society basing on
religion, region, language, caste, sect etc,
dishonesty, intolerance, hypocracy, greed etc,
on expected development of nation. This
diplorable scenario prompted me to put my
observations, feelings and reactions into black
and white. This effort is purely to pass my free
time after my retirement. To substantiate my
feelings on this subject good lot of information
and data have been procured from Google
search engine through the posts of many
intellecutals, experienced personalities, news
bulletins and statistical data from Government
 Page III
publications and Associations’ reports etc,.
Some of the statements have been presented
as they are for more clarity. While explaining
the anticedents of some of the factors too much
of introduction and explaination might be
unnecessary but I could not avoid. I dared to
suggest some antidotes and personal views for
the burning problems faced by India here and
there purely out of instant reactions. I am not
sure they are relevant and meaning full. A few
such suggestions might have been given by
many people in the past and at present. There
is no direct revelation against those persons or
departments and I have no claim or authority
on them. There is no intention to comment or
criticise or dishonour any person. My sincere
aim is that atleast 100 people especially
youngsters who read this book may generate
in them a pinch of responsibility for the
development of Nation by inculcating honesty,
feeling that Nation is bigger than individual,
work for unity, helping others and discouraging
voilence. I only hope to see India as a develped
country in the world in time as dreamt by Dr.
Kalam.
My sincere thanks to Mr. G.
Krishnamurthy, Rtd Lecturer in English, Kurnool
for his patient scanning of this book and
correcting the gramatical ghosts.

M. Ravindranath
 LETTER OF APPRECIATION
The book entitled “INDIA,MY
PERCEPTION” authored by Dr. M. Ravindranath
is highyly thought provoking and mind-blowing.
The author has covered several burning
problems of Modern India and suggested some
remedial measures. If the youth of today strive
hard and join together several problems can
be prevented.
Finally we can make Swatch Bharath and
Swarna Bharat. I wish all the best to Dr.
Ravindranath in his endeavour .
G. Krishnamurthy, M A (Lit)
Senior Lecturer in English
Kurnool, AP.
 Page 1

INDIA, MY PERCEPTION
ANCIENT INDIA (EARLY HISTORIC ERA)
India is no doubt the greatest country
among a few in the world. Its civilization dates
back 2500 BC and the first evidence was found
around River, Indus and especially in Harappa
and Mohenjodaro areas. Well planned
townships, houses, drains, roads, earthen
ware, metallic pieces were found during the
excavations of those areas which stand till date
as proof of early civilization of India. Next best
proof of greatest civilization is the scripts of
Vedas. The Vedas are considered the earliest
literary record of Indo-Aryan civilization dates
back 1500 BC and the most sacred books of
India. They are the original scriptures of
preaching and contain spiritual knowledge
encompassing all aspects of our life. Veda
means wisdom, knowledge or vision, and it
manifests the language of Gods. There are
number of references and links to declare that
Vedas also are guides for the later generations
to develop science, mathematics, medicine,
astronomy, literature, music, dance, arts etc.
Many evidences of earlier scripts such as
Upanishads, epics namely Ramayana,
Mahabharatha, Bhagavatham, written by great
saints also keep India on the top of creditability.
 Page 2

These books taught us best moral values,

principles of dharma, values of life, human
ethics etc. The great Indus Civilization started
changing from 2000 B.C. when groups of-
Europeans called Aryans travelled to
northwest India and reigned during the Vedic
age. The mingling of ideas from the Aryan and
Indus Valley religions formed the basis of
Hinduism the Concepts of gods Shiva, Kali and
Brahma all have their roots in Aryan civilization.
The Aryans also recorded the Vedas. The first
Hindu scriptures Reveal the introduction of a
caste system based on ethnicity and
occupation. Alexander the Great invaded India
and he wanted to solve the mystery of the
“ocean,” which he had been told as a huge,
continuous stretch of water that flowed in a
circle around the land. Greek sculpture strongly
influenced many portrayals of Indian gods and
goddesses, particularly after the conquest of
Alexander the Great around 330 B.C. In fact,
early Indian gods had Greek features and only
later distinct Indian styles emerged. In ancient
India the societies formed with a group of
people living under one leader in one particular
area mostly near a water bed. They were
nomads earlier but started living in one place
by developing their own environ, habitat,
shade for living, tools for hunting animals for
 Page 3

food and even cultivating the land for grains.

As generations passed, India has a prevailing
tradition of the joint family system. It is a
system under which extended members of a
family – parents, children, the children’s
spouses and their offspring, etc. – live together.
Usually, the oldest male member is the head in
the joint Indian family system. He makes all
important decisions and rules, and other family
members abide by them. The ancient Indians
used to love the nature and started worshipping
animals, trees, sun, moon, fire etc. They
believed them as God’s gift as being solely
dependent on them to survive. Periodically it
has become a ritualistic in Nature. More facts
had come to light only after the advent of
Vedas. Learned people of those eras started
understanding the verbal versions of Vedas and
practicing them in day to day lives. After
developing the art of scripting, they started
giving a bibliographic shape to Vedas. The
religious traditions, preaching of morals,
educating the people, practicing rituals etc, had
become a part of Indians. By means of yoga,
meditation ie., thapassu for longer periods,
some times years together, they attained
spiritual powers with which they spread the
knowledge, reformed the societies, developed
the science and technology, managed the
 Page 4

natural resources, guided the people to live

peacefully. The people observed disciplined life,
respected elders and Gurus, honest, trust
worthy, sincere, responsible and helpful to the
society. Thefts, cheating, violence,
misbehaviour, disobedience were nil or rare.
KNOWLEDGE OF THIS PERIOD
As per the records available about
10000 years back Indian Mathematicians
invented number system and credit goes to
Aryabhatta who invented and introduced Zero
to the world. India has several credits that can
be attributed to Indian mathematicians who
invented algebra, trigonometry etc.
Sridharacharya, an eminent mathematician of
11th Century brought out concept of Quadratic
equations to light. Even value of pi was first
calculated by Bhudhayana and he explained the
concept of Pythagorean theorem in 6th Century
itself. It is a known fact that Sanskrit is the
toughest and oldest language and is the mother
of European languages. There are several books
written in Sanskrit by Indian authors especially
saints of early centuries. Even today India is the
only country which is patronising Sanskrit by
introducing in the schools, colleges and
establishing exclusive institutions to teach
Sanskrit. Sanskrit is the best language suitable
 Page 5

for computer software development. All the

rituals of Hindus are being performed as per
the guidelines of Vedas in the form of Sanskrit
hymns and slokas. Even in the field of Education
India was in forefront in the world. The first
University was established in 700 BC in
Takshasila and more than 10000 students from
all over the world got educated in more than
60 subjects. The university of Nalanda built in
4th Century BC was also one of the greatest
ancient Indian educational institution. In the
field of Medicine also India was forerunner in
the past. Ayurveda is the earliest school of
Medicine known to humans. Medicines are the
extracts from plants especially from leaves,
roots, barks. Charaka, a saint of India was the
father of Ayuvedic Medicines who practised
2500 years ago. Today Ayurveda is being
practiced not only in India but also world wide.
Practice of Surgery and anaesthesia with the
knowledge of anatomy, metabolism,
physiology, genetics, immunity gained from the
ancient Indian texts. Sushruta was the Father
of Surgery at that time. Apart from it Indian
early civilization also indicated the
development of metals, making of tools,
utensils, usage for the lively hood. Iron
developed by tribal in those days was rust proof
for centuries. Chess, an International game was
 Page 6
first developed by Indians. The greatest
technology developed and practised by ancient
Indians was Spirituality. Most of them were
saints and rishis who acquired spirituality by
virtue of deep meditations, pujas, homams etc.
With this technology, the power of spirituality
they became scientists, mathematicians, poets,
artists, surgeons, medical practitioners,
preachers, writers etc.
CULTURE OF THIS ERA
It is worth to describe the culture of
ancient India to have a comprehensive
comparison as a feed stock for this book. The
specific picture of culture prevailing in the era
of 1500 B.C is also known as Vedic culture.
The culture of India is the way of living of the
people in ancient India and how it transformed
in to a complex culture as reflected in the
present day in India. Traditional Indian culture
is defined by a relatively strict social hierarchy
and from an early age, children are reminded
of their roles and places in society. The impact
of belief in Gods and spirits is the detriment
of personal life. Several differences such as
religion, geography, language, habits and
traditions divide the culture.
The scripts of Vedas written by saints
revealed that the social fabric of ancient India
was divided into four functional groups which
 Page 7
we call them as castes namely Kshatriya,
Brahmina, vysya, Shudra. The specific functions
to be carried out in the life by a group of people
such as ruling or managing the sovereign
territory, performing rituals, running
educational institutions, teaching and
educating the populations, guiding the rulers,
dealing in merchandise and money matters,
and all other functions like agriculture, labour,
artisan etc., the groups specifically are
recognised as four castes. As the population
picked up and knowledge of the people grew,
groups in the population started carving in the
society depending on the identified habits and
habitats.
Religion is one of the identity of certain
group basically influencing on the culture of
creating Gods and worshipping them. Indians
were believers of Vedas, puranas, Upanishads
and the specific religious activities such as
worshipping Gods, rituals during festivals,
weddings. And they are the principles of
Hinduism notably. Over a period of time
religions such as Buddhism, Jainism and
Sikhism, Islam had come into existence in India.
Indian religions are a major form of world
religions along with Abrahamic ones. Today,
Hinduism and Buddhism are the world’s third
and fourth-largest religions respectively, with
 Page 8

over 2 billion followers altogether and possibly

as many as 2.5 or 2.6 billion followers.
MIDDEVAL INDIA
A most reformed civilized India could
be witnessed during 500 BC on wards. At that
time India was made in small provinces and
kingdoms. Every province was having one
central palace from where the king used to rule
the area. The main source of income was from
agriculture. The king used to be monarch with
luxurious life and greed to expand their
territory by means of wars or force. The most
powerful kingdoms ruled by eminent kings
brought all the possible provinces under their
control and rule. During their period they build
mighty palaces, temples, monuments, dams,
roads, encouraged artists like builders,
sculptors, painters, writers, dancers, musicians,
poets etc. They produced voluble metals like
gold, silver, copper and voluble stones like
diamonds, rubies, emeralds etc. It was this
Treasure India which attracted foreigners.
People at that time were submissive in their
profession. The soldiers used to be loyal to their
Kings in safeguarding their kingdom, by serving
the king with honest and sincerity out of respect
and fear. The farmers used to work in the fields
and raise agriculture produce and pay taxes to
 Page 9

King. Like wise every one used to work for the

king. King Ashoka in his time, 350 BC ruled
almost entire India from present Afghanisthan
to Bengal, Himalayas to most of Southern part
of India. He was the icon in conquering small
kingdoms, establishing a strong empire in
Maghadh, laying roads, planting trees, erecting
sthupas, constructing shelters for travellers,
digging ponds, spreading Buddhism and many
more social welfare measures. Even up to 500
AC many kings developed their own kingdoms
and contributed a lot in spreading their religion,
constructing temples to worship, encouraging
trade and agriculture. But main constraint was
internal wars among the kingdoms for power
and sovereignty. This weakness paved a way
for foreigners like Mughals, Britisherds to
invade India and ruled for centuries.
Days, months, years and centuries
passed Indian civilization and culture
metamorphosed to a significant level. The
scenario so greatly changed by natural process
and the influence of foreigners, who visited
India as tourists, merchants, invaders,
developers of colonies etc. The Indian
civilization and culture got diversified, new
religions propped in, new rulers looted the
wealth of India. Once glorious India became a
subordinate and den of slavery. It all started
 Page 10

with the invasion of Mughals in early 16th

century AD. Babur the first emperor who paved
a way through hill passes from Afghanisthan
established Mughal empire in India. Later his
successors King Humayun, Akbhar and others
ruled India. But they looted valuables of India,
damaged several temples, crushed the
independence of Indians. They brought Islamic
religion with them. Constructed several
mosques, a few of them world heritage
structures but contributed a bit to India by
building several world famous monuments with
a blend of Persian and Indian architecture. Most
of the kings except King Akbhar were adamant
to follow their own religion. Akbar had a broad
look with humanitarian consideration. He
married a Rajput princess, brought a
harmonious relationship with Hindus, created
blend of arts, respected Hindu belief. Thus
another culture took existence in India.
From 1600 AD Europeans started
visiting India by sea rout for exploiting the rich
Indian merchandises such as spices, iron,
diamonds, cloth, antiques, paintings etc., Dutch
nationals visited India from 1605 AD,
Danisherds from 1620, East India Company
from England in 1612, Portuguese nationals
from 1628. All of them carried out business by
setting up their establishments in a few parts
 Page 11

of India especially in coastal areas. Most of them

wound up their businesses due to resistance
from locals and Government policies of their
respective countries. But East India company
carried out their business activities till 1757 and
then started capturing the sovereignty of India
by establishing their private armies and
dictating their terms for Indians as rulers. They
tortured Indians who ever came against them.
They monopolised entire trade and
administration. They spread their religion,
Christianity in India, allowed the religious
organisations to build churches, schools,
hospitals and orphanages. Yet another religion
made inroads into India. Thus one more western
culture started to influence Indian culture. Later
the rulers of England intervened and abolished
the East India company rule in 1858 and took
over the India and established British Raj by
implementing British policies and ruling India
about 60% directly and 40% indirectly. During
their period they salvaged Indian wealth,
controlled the entire Nation, exploited Indian
potentials. One admiring contribution and help
they did were created best and efficient
administration and bureaucracy, developed tea
and cotton agriculture and coal and iron
industries. In fact, by 1940, the Tata Iron Works
was the world’s largest Iron factory. Likewise,
 Page 12
the British continued developing India’s
infrastructure with more railroads and
telegraph lines, so that by 1900 India had the
longest railroad in Asia, introduced British style
and standard education system. However
efficient the bureaucracy was, there were large
gaps between the higher ranking British and
lower ranking Indians that carried over to
society in general. Increasingly, Indians were
getting tired of their second-class status and
worked increasingly for independence.
PRE INDEPENDENT INDIA
The Indian National Congress, founded
in 1885, led the independence movement. At
first, its goal was to gain more rights for Indians
and more say in the British administration.
However, as its power grew in the twentieth
century, it agitated increasingly for complete
independence. World War I (1914-18) and
World War II (1939-45) further catalyzed India’s
push for independence, since Britain had to rely
heavily on Indian recruits to fill its ranks. In
return, Britain promised more political
concessions, thus weakening its hold on India.
In 1920, a new leader, Mohandas Gandhi
emerged as the voice of the Indian National
Congress. Educated in both traditional Indian
culture and British schools, Gandhi developed
very effective non-violent tactics of resistance
 Page 13
while protesting British policies. The British, not
wanting to risk the bad publicity and a violent
reaction could generate, had to give in to
Gandhi time after time and at the end of World
War II, Britain promised independence for
India. Finally, in 1947 Britain declared
independence to India by separating western
part as Pakisthan and a part of East Bengal as
East Pakistan, now Bangladesh for muslims.
INDEPENDENT INDIA
India resorted to redesign the modern
India by following the democratic principles.
Leaders like Jawaharlal Nehru, Vallabhi Patel,
Balagangadhar Tilak, Gopalakrishna Gokhale,
Babu Rajendraprasad, B R Ambedhkar under
the guidance of Mohatma Gandhi created
Indian constitution, followed Parliamentary
system to form the Government of its own and
rule India independently by Indians, for Indians.
Thus ancient India with its glorious culture,
religion, Vedas, knowledge of astronomy,
geography, scientific and technical inventions,
medical knowledge, provinces, administrative
skills, capacity to build gigantic structures such
as palaces, temples, dams, weapons,
development of armies, trained animals for
wars and many more cognisable in the world
history had metamorphosed to present
Modern India due to influence of western
 Page 14

invaders, traders, rulers, and cultures. India

completed 68 years after attaining
Independence. Country is being ruled by
democratically elected representatives of
people. The foundation laid by British rulers in
the sectors of Communication, postal, Railways,
law and Order, judiciary, education, mines was
very much helpful to India to build further. The
development after Independence is significant
and praise worthy. But it was slow and steady
due to several factors. When compared to well
developed countries in the world such as
Germany, France, Italy, England, USA, China,
Russia and Japan, the growth of India in terms
of economy Vs population is faster. America
took 1000 years to develop from ground zero
and reached peak in 20th century. In the year
1930 the statistics showed USA’s GNP was 540,
Japan’s was 64 and where as China’s was 18
only. Japanese economy started picking up from
1800 only which crumbled due to war
devastation. Rebuilding up of economy started
from 1945 post war with an astounding growth
rate of 20% and by 1980 it was third largest
GNP in the world. The main assets for their
growth were education, skill development of
people, dedicatedworkforce,planning and
implementation.
 Page 15
Thus Japan is called fastest grown
economy. On the contrary, Chinese economic
growth started from 11 th century and
constantly picked up irrespective of
intermittent wars, by strict implementation of
industrialisation, agriculture, commerce and
technology policies.
MODERN INDIA
India after independence emerged as
a modern India from pupal stage. In order to
have a comprehensive opinion about any
country’s demographic prospects it is worth to
compare with another country, equal or parallel
in position. Especially the factors like
population, its growth rate, age, economy,
health care and education will give a base for
assessment of a country’s prosperity and
posture. The author feels it worth to compare
India with China for the afore said purpose.
Demographic contrasts between China and
India will become more pronounced in the
coming decades. China’s population is larger
than India’s, but India’s population is expected
to surpass China’s by 2025 as the growth rate
of population in China is around 0.66% and
population is older than India’s and beginning
to age rapidly, which may constrain economic
growth, whereas an increasing percentage of
India’s population which is around 1.5% and will
 Page 16

consist of more working-age people up to 2030,

giving India an important demographic
advantage. How much these demographic
changes inflence economic growth will depend
on several other factors, including the
infrastructure, education system and health
care systems in each country and how well India
integrates women into its workforce.
There are several similarities and equal
parameters between China and India. The
economic growth in terms of GDP is over the
past decade is 9 percent in China and 7 percent
in India. There is sustenance in the growth
pattern in both the countries. These countries
could withstand the impact of recent Global
recession. However, India has to face several
challenges in the coming periods such as
unprecedented provocations from the
neighbouring countries, unfavourable climatic
conditions, vulnerability of storms, cyclones,
floods, unemployment among educated and
rural population, poverty, corruption, integrity
between states and centre etc. China is much
better in these respects as the central
leadership is strong and in commanding
position, work force is more skilled and people
keep up the values of democracy in a positive
note rather than misusing for political, regional,
religious, cast-creed issues. These differences
 Page 17
will get projected in the coming decades and
will have a relative economic structures. Unless
India wakes up and revolutionise the systems
from now on chances of coping with China does
not arise.
The following few parameters for
comparison between China and India which
reveal the real status of our country. Figures
given are from 2011 census.
Parameters China India
Total population 134 crores 121cr
Males 69 “ 62
Females 65 “ 59
Density 143 persons/sq.km 412 persons/sq/km
Surface area 9.6 million sq.km 3.3million sq.km
Literates 106 cr 78 cr\E. strength in 2011:
Schooling 9.6 cr 3.53 cr
College/Higher Educ 1.1 cr 4.1 cr
Employed in 2011 77 cr 10.1 cr Plus 20
cr Agri labour
GDP 846162 Mill USD 183581 Mill USD
Per capita GDP 63140 USD 15170 USD
Average yield of grain 5707 kg/ha 1888 kg/ha
Total grain production 600 Mill tonnes 259 Mill tonnes
Total oil seeds production 351 Mill tonnes 35,4Mill tonnes
Cotton production 6.3 Mill tonnes 4.6 Mill tonnes
Power production 3.18 Giga watts 2.36 Giga watt
 Page 18

The above data was collected from various

websites of Govt. or Associations or Chambers.
The figures are indicative but not accurate. This
data clearly indicates that there is a lot of
demographic differences between two
countries though existing in the same continent.
China has a vast area and marginally high
population when compared to India. Hence, the
density of the population is quite high in the
case of India which itself is the major cause of
economic disparity. More over The
Constitutional Republic of China had come into
existence in the year 1912 after 4000 years of
imperial rule. China too experienced Japan war,
civil war but with the intact culture and
infrastructure moved forward with industrial
and economic revolutions. China achieved
strongest economy in the world since 3
decades. Major economies of the world are still
depending on China for industrial products.
Where as, India as explained earlier, has several
inhibiting factors such as high population,
minimal surface area, adverse and extreme
climatic conditions, insufficient natural
resources especially fuel, power, agriculture out
put, unexploited human resource etc., The
factors such as literacy, GDP, per capita GDP,
employment, education, agricultural
production, industrial out put, resources such
 Page 19

as natural gas, fuel, coal, minerals are

comparatively limited and scarce which is
limping the Indian economy.

DREAM OF INDIA
India has to gear up its efforts to
provide education to the maximum extent, to
concentrate on parting skill and training to the
youth and to make them a strong productive
force, to exploit and expedite women
empowerment 100 times more than the
present status in order to boost the National
economy with the maximum participation of
women in the work force, to provide health
care to all as the there is direct proportion to
the productivity and indirectly to the economy,
to develop infrastructure facilities which reduce
the transactional costs, increase the
productivity and economy, to open up to the
global trade with amicable and mutual terms
with sustainable for longer durations
irrespective of Governments in power etc. As
our politicians dream, intellectuals preach,
people expect, India has to revolutionise the
systems, put up the efforts sincerely, dedicate
by all sections, sectors, streams to make India
progressing, promising, pragmatic among the
Nations of the world and Number One in the
world.
 Page 20
Any common person in India gets a doubt
whether India can achieve the mentioned
goals. A positive viewer thinks that it is possible
in view of the developments achieved in 67
years after independence in spite of several
ordeals of man made and natural.
It is extremely essential to analyse
several factors to come to a conclusion of
adoptable ways and means and measures,
directions, constitutional amendments,
execution, control mechanisms, supervisions,
inspections, auditing, responsibility thrust etc.,
to reach our goal.
MAJOR CONSTRAINTS IN REACHING THE GOAL
Let us first identify the major
constraints that are hindering our progress
from the present state of grouth and
development. Then let us work out how we can
overcome these constraints.
High level of poverty: Though the
considerable growth is quite evident in India
the poverty level is extremely uncontrollable.
The major reasons may be attributed to the
coexistence of richest people and low income
or no income group of people in any town or
metro which stimulate agitations, crimes,
disputes and humiliations leading to hindrance
to the growing economy. The poor people can
not contribute to the economy growth as they
 Page 21

can not pay taxes but on the other hand Govt.

need to spend a lot for their betterment. The
share of poor people self earning modes,
inborn skills, lack of dynamism and services to
the rich, though not significant but worth
exploiting to explore the growth prospects
through right policies.
Another significant constraint is
infrastructure facilities. Well connecting quality
roads, water ways, sufficient rail network with
adequate goods transport bogies, fast tracks for
speedy transportation, evenly distributed
power generation sectors and sufficient
production of quality and uninterrupted power,
airports with people and goods handling
facilities, adequate water sources and
distribution and others are essential
infrastructure facilities to be created by Govt.
As a matter fact China is having far better
infrastructure facilities compared to India and
hence, the difference.
Bureaucracy in India is another
constraint for the growth. It is also called as
Licence Raj. The independence of a person, an
entrepreneur, an industrialist, an Indian or a
foreign investor, a trader, a service provider, a
professional to establish their own line of
activity they have to crack several hurdles to
 Page 22

fetch numerous licences/permits from various

departments and investing nearly 20% of their
project cost as bribes. Even Govt. sponsored
projects get delayed for inter departmental or
inter ministerial clearances. The existing
industries also face several bureaucratic
clutches for renewals, extensions, expansions,
subsidies, financial supports etc.
Low inward Foreign Direct Investments
is yet another constraint in India. Any under
developed or developing country has to depend
on monetary support from developed countries
or International Banking systems for major
developments in Infrastructure, poverty
eradication etc.
Many other factors apart from above
major constraints Govt. policies on subsidies.
Though originally planned for giving subsidies
on a few areas and for a limited period till the
vulnerable population, industries, exports meet
the desired levels of sustainability.
Unfortunately circumstances forced the Govt.
to continue the subsidy culture till today and
the burden on the Govt. is escalating
abnormally. Subsidies, as one of the major fiscal
populism, in Electric power sector, cement
production and distribution, staple foods, fuel,
gas , fertilizer, education etc, showed a
 Page 23
tremendous impact in bringing a high altitude
of fiscal deficit and balance of payments.
Very poor governance and
administration under the influence of elected
leaders, are affecting all the dimensions of
economic and social life of mostly backward
classes. Public service system is totally against
the people’s wish, need, safety, interest and
just and worsened over time for many reasons,
including exodus of intellectuals, lack of
dedication, sincerity, rampant cast based
reservations or quotas and corruption.
Apart from the above constraints
several other intrinsic factors which indirectly
add to the fuel. The limping development of
India is being influenced by these factors to an
invisible level. Unless and until these factors are
addressed carefully from this point of time even
the above mentioned major constraints are
reformed and rectified, the scope of seeing
India as Number one economy and self
sufficiency is not possible. A few of these
factors are related to judiciary, policing,
politics, militancy, inter state disputes for
resources, indiscipline, misuse of democracy,
non honouring the law, irresponsibility, black
money
misuse of budgets/finances, wasteful
expenditure, failure in identifying priorities,
 Page 24

natural calamities such as cyclones, heavy rains,

floods, no rains, structural backwardness, acute
deficiency of material capital, limitation of
capital accumulation, low capacity to save
capital, poor conversion of savings into
productive investment. circulation, inaction for
crimes, misuse of power, tax evasions, illegal
trade/smuggling, dishonesty, etc., are
responsible.
DETAILED ANALYSIS OF VARIOUS CONSTRAINTS
INFRASTRUCTURE: A basic principle of Chinese
Government is to foresee the modern economy
which. it believes to achieve only by giving top
priority to infrastructure development. Their
main priorities are reliable roads, electricity and
telecommunications. Also investment raised by
50 percent annually for rural roads linking the
urban conglomerates and increasing the
efficient transport and logistics to tie the
country together. Its ultimate goal is make
China a middle income country.
China currently spends around 9
percent of its GDP on both domestic and foreign
projects. Whereas the U.S. spends less than 2
percent of its GDP on infrastructure. China has
the most extensive network of high-speed
rails in the world—approximately 7,000 miles’
and thousands more miles of track under
construction.
 Page 25
China has authorised its policy banks to issue
new bonds in order to plough money
into infrastructure spending. The key trends
and developments in the Chinese mainland
infrastructure sector since 2009, a period in
which the sector benefited significantly from
the acceleration of infrastructure projects as
part of the stimulus package. It is note worthy
to observe the implications of the latest Five-
Year Plan (2011–2015), which sees a shift in
emphasis from the rapid economic growth of
previous years to higher quality, sustainable
growth for the future. Chinese policy makers,
politicians, business leaders, economists and
scholars aim to give ever lasting importance
to the growth and development of the Nation
in order to maintain as largest economy in the
world.
They are progressing in enhancing other
infrastructure such as water, power, transport,
communications, education and health care
that are required for modern life as vital
ingredients for achieving sustainable, high
quality growth for future.
A typical example of Chinese policy is reflected
in their policy matter of self generation of
resources and funds for various projects when
observed their Railway budget in the present
fiscal. They pool up 12% from State budget,
 Page 26

42% from domestic loans, 34% self raised, 11%

others and only 1% from foreign investments.
Indian Government also opines that
infrastructure is a major sector that propels
overall development of the Indian economy.
The concerned Secretariat for Infrastructure in
the Planning Commission is involved in
initiating policies that would ensure time-
bound creation of world class infrastructure in
the country. This section focuses on power,
bridges, dams, roads and urban infrastructure
development. Details of the projects,
organizations, policies, timelines, schemes,
spending on infrastructure are well designed
for speedy implementation. But the execution
is the culprit.
Being infrastructure a priority for the
government’s economic policy, funding from
private as well as public sectors is set to increase
sharply in the near future. Infrastructure’s total
share in bank funding rose from 3.74 per cent
in 2002 to about 10.40 per cent in 2015. And it
is estimated that total spending on
infrastructure would reach US$ 19 billion
during this plan period of 2012-17. Total
infrastructure spending is expected to be about
10 per cent of Gross Domestic Product (GDP)
during the 12th Five-Year Plan (2012–17), up
 Page 27

from 7.6 per cent during the previous plan

(2007–12). Increased impetus to develop
infrastructure in the country is attracting both
domestic and international players. Private
sector is emerging as a key player across various
infrastructure segments, ranging from roads
and communications to power and airports.
India’s economic slowdown continued
this year, accentuated by falling investment,
especially in the infrastructure sector. Private
participation, which has been the corner stone
of the growth in infrastructure, fell dramatically
in this sector, particularly in the roads and
energy sectors. Some measures have been
initiated to stimulate the infrastructure sector.
Thus it is very clear that India is lagging
behind China in investing in infrastructure
development. It is also evident that India’s
focus to pool funds from public and private
sectors will not be sufficient and dependable
and little progress will be achieved.
India is the fourth largest economy in
the world but lack of world class infrastructure
made it to lose better investment climate. In
the past though the Governments after fresh
elections spell out ambitious and dream plans
to develop infrastructure but lack of necessary
budget allocations, tariff policies, fiscal incen-
 Page 28

tives, private sector participation or private-

public partnerships pull back efforts. There was
no firm resolve and dedication on the part of
politicians who monitor the Governments. Even
the decisions taken, scrutinised and budget ap-
proved by the planning commission, the inter
ministerial non-cooperation, deficiency in the
will among bureaucrats and mall practices could
not permit to execute the projects in time
within the budget allocation and even if finished
the quality of works is poor. Thus inadequate
power production, quality transportation infra-
structure and required net work of road and
rail connectivity, expected industrial growth
could not be achieved. Oflate, the importance
of infrastructure development was realised and
there was substantial growth in investment in
the eleventh plan period which started from
5.7% in the first year ended with 8% of GDP in
the final year. There was significant develop-
ment in telecommunication, oil and gas pipe-
line laying. But the targets could not be reached
in railways, roads, ports and electricity. Having
realized that It was possible only through Pub-
lic-Private Partnership route, in 12th Plan period
about one trillion US dollars worth infrastruc-
ture development works were planned out
spreading in 5 years and maintaining 7-9 % of
GDP.
 Page 29

Most of the debt financing came from banks,

non-bank finance companies (NBFCs), external
commercial borrowing (ECB), mutual funds,
private equity funds, venture capital funds,
micro finance institutions followed by insurance
companies. Out of which it is expected about
50 % resource is from public and private
funding. PPP funding is significantly observed
in roads and highway projects which is 53% of
758 projects under the 5 year plan and private
funding is observed mostly in
telecommunication projects. And the state
Governments are taking care of public service
sectors. Dismal participation of private or
public funds in power sector which accounts for
7% of total projects under this category. As the
power requirement is vital for over all growth
of a Nation in terms of urban development,
industrial development, rural electrification.
India is poised to depend on public and private
sectors for at least 60% participation in power
sector development. In general funding to the
infrastructure developers is from commercial
banks to the extent of 20%, from Non Banking
Finance companies to the extent of 10%, from
Insurance companies to the extent of 4%, equity
and Foreign Direct Investments to the extent
of 15%, others 5% and hence the burden to the
Budget allocation rise to 40 to 45%. The earlier
 Page 30

hiccups of exchange rate arrangements and

convertibility of the rupee are over and it is
observed that India’s current external payment
regime, characterized by an intermediate
exchange rate regime with some capital
controls will continue to serve best interests of
India over the next five to ten years to come.
Such a system provides the freedom to operate
an independent monetary and exchange rate
policy, which is crucial at the current stage of
India’s development. Even the fiscal deficit has
moved in a cyclical pattern during the past 15
years and has been inversely correlated with
the growth performance of the economy . The
recent efforts to consolidate the fiscal status
could not rectify the fiscal deficit levels and
public debt in India which are highest in the
world and great concern to the Government.
It can not be said that all Indian governments
have been unable to put forward infrastructure
development plans. For example, the
government run by the current principal
opposition party that is Congress party did an
impressive job with construction of roads and
national highways. But that was back in the late
90s and early 2000s. They failed to build on this
and do similar progress in other areas of
infrastructure sector and were then voted out
in 2004. The government which followed
 Page 31

initially tried to build on their work but couldn’t

sustain its own efforts. So there have been
attempts, but they have failed to produce
desired results.
According to IMHO, there are multiple
reasons hindering the infrastructure
development in India, or so to say, why the
government has been unable to push national
infrastructure development plans. The
challenges faced mainly in the last 10-15 years
as this was the time India experienced high
economic growth and faced an increased
demand for large infrastructure projects.
Another salient impediment for the
development of infrastructure is land
acquisition. Resistance from the land owners,
differences in land costs as per the
Government records and the market value,
disputes, litigations, court delays, assessment
of the land value basing on the structures or
crops or plantations present, rehabilitations,
compensations , enormous delays in taking the
land in to possession, lack of proper dispute
resolution mechanism or authority and many
other factors individually or cumulatively
hinder the project proposals, progress of the
projects and completion.
The most common hurdle encoun-
 Page 32

tered by many large infrastructure project is the

acquisition of land. Lands are often held by
small farmers or inhabited by tribal groups, who
seldom fail to deal on mutual terms with a de-
veloper or a corporate sector. Not surprisingly,
these farmers and tribal groups have often felt
exploited as the buyers purchased their land for
a song and often resold it for a fortune. The
compensation provided to these poor farmers
and tribal is only ever been less than justified.
So having sold their primary means of earning
income, they then faced a steep rise in the cost
of living owing to the high rate of growth of In-
dian economy. Thus a feeling of oppression en-
gulfed these groups. So the project developers
then sought government help in acquiring land.
The government too, many a times adopted
corrupt and high handed methods in their deal-
ings with these groups giving rise to a sense of
annoyance against the government. But the
mass agitations against industrial projects in the
states of West Bengal, Odisha, U.P. etc. made
the political parties realize that championing
the cause of land acquisition for any sort of
project would hurt their prospects in future
elections. Even the only major party with right
wing economic ideas (BJP) got scared of speak-
ing against the agitators. Now the scenario in
India is such that we have a plethora of leftist
 Page 33

and socialist parties which have no real ideol-

ogy and only act for attracting votes. Even
India’s biggest party (INC) appears to be social-
ist in its attitude. These parties, for their nar-
row political gains, have also resorted to creat-
ing problems for land acquisition even when
there exist none, by misleading farmers and
tribal groups. As a result, Land acquisition be-
came progressively more difficult. A few weeks
back the government tried to pass a new land
acquisition bill that is only going to make land
acquisition even more difficult. The opposition
parties are also making it more critical and com-
plicated to avoid the passage of the bill not with
an intention of helping poor people but for po-
litical gain. India functions with nightmarish bu-
reaucratic inefficiencies and hence, the poor
pace of infra growth is also due to the failure
of the state’s official apparatus to provide the
necessary clearances required for the infra-
structure proposals in the light of India’s clock-
ing high growth rates and booming invest-
ments. This apparatus needs to completely
overhauled and needs reforms.
The next major issue that requires
reforms is the levying of user charges on
infrastructure. It has always been a politically
contentious issue. For example in case of roads,
the experience with user charges (tolling) began
 Page 34

with immense opposition led by the left parties.

As a result, successive governments, in their
fear of losing votes, have tried to cushion the
people from the cost of so-called essential
services. Although some steps are now being
taken in this direction such as the Airport
Economic Regulatory Authority reaffirming the
airport developers to charge user fees from
passengers if commercial revenues fall short of
requirements.
In this present context it is quite clear
that Governments both at centre and states
have deficit budgets since a decade which is
expected at about 10% of GDP and the
Government borrowing has been blocked by
the fiscal responsibility and budgetary
management act and hence, dependence on
public sectors for the infrastructure
development is inevitable. The concept of PPP
model of development showed good results
ever since it was started humbly in the past 15
years. As per world bank report India had taken
up 1017 projects worth Rs 4.86 lakh crores
achieving second place after China in terms of
number of projects held and second to Brazil
in terms of investments. In recent years, the
PPP model in India has been fairly successful
with several projects being implemented across
 Page 35

sectors. However, one of the main problems

confronting infrastructure and PPPs in India is
the delay in implementing. Another significant
factor is funding from the operatives’ own
sources. Generally any person or institution or
agency or as a matter of fact Governments work
for growth and development in the form of
earning monetarily, expanding the business,
achieving credit worthiness for mobilising funds
from public or private financial corporations,
foreign investments, loans from Banks or Public
Financial institutions etc,. In the present
scenario such benefit is around 10% of their
investments minimum. That is termed as
growth or profit. The PPP operatives look
forward for such profit annually till the period
of contract is completed. Hence, they look for
sustainability in each and every venture taken
up. As most of them have a tag of business
acumen they study, analyse, work out the
feasibility of the projects before hand.
Interestingly so far projects selected by them
are roads, highways, ports, airports only
because they are sure of collecting their
proceeds regularly through toll collections on
high ways, air port charges from all the aviation
operatives, specified part of income from port
trusts etc. As most of the infrastructure projects
are high capital involved, longer periods of
 Page 36

gestation, incur maintenance costs for infinite

periods, delayed financial closures and slow
returns or income, the impact of interest on
investments is scaring. The PPP operatives
have to mobilise the funds from different
sources such as Financial institutions and FDIs
apart from their own means. Regular
repayments of both interest and principal
amounts to the financiers is possible only when
regular income is assured. In the absence of
the same the imbalance is created and the
projects suffer in progress. In such situations
all the stake holders adapt escaping, evasive
and illegal modes.
ICRIER proceedings: It is also noticed by the
experts that the pattern of investment and
current state of Indian infrastructure are also
the major factor for the poor development. The
chronic under investment resulted in significant
deterioration in the service of quality and
quantity to cope up the new demands. Though
the progressive deregulation of the Indian
Financial sector has yielded impressive gains
but still there are shortcomings that urgently
need to provide incentives to attract greater
investments for productivity through allocation
of credits and higher participation of private
sector. Even the deregulation of interest rates
and capital account convertibility are to be
 Page 37

adapted in need. An encouragement to expand

the corporate debt market and exchange
traded interest rate derivatives is also
necessary.
Even higher participation of private
sector also pose challenges for governance.
Potential private investors need to be assured
that they are on a level playing field with
Government sponsored operators and other
private operators also. Secondly, as the share
of sunken investment in infrastructure is
relatively high, viability of infrastructure
investment depends relatively more on the
consistency and predictability of the rules of
the Government and its pressure to adhere to
the rules over a long periods of time. This
concept dithers private sectors enthusiasm.
Thirdly, consultations with the public and
public security are more important with private
sector participation than without, to make tariff
levels and service standards socially acceptable.
Finally, the private sector needs to be convinced
that adequate individual and institutional
capacity exists in the public sector to carry out
the frameworks effectively.
A fundamental challenge for the
private sector participation in infrastructure
projects is whether the political economy allow
 Page 38

appropriate governance to sustain. The

influence of political economy on governance
created mainly four different types of conflicts
which have relevance for the infrastructure
sector.Power distribution and supply by the
Government owned NTPC to the private
projects, State Government interests and
central monetary authority, RBI are regulated
by a mutual agreement and Government’s
assurances for the defaults etc. The royalty
issue on coal brought contraventions between
coal rich states and power producing states
based on coal allotments. Government of India
some how is managing by keeping the cost of
power provision under control.
Another conflict worth mentioning is
most of the urban local bodies have to create
capacity for water and sanitation services to the
residents but they do not have technical and
managerial capacity to carry out these functions
and depend on state government agencies for
the same. Even they have no financial
autonomy in spite of Supreme court directive.
Similarly inter ministerial and inter
departmental conflicts lead to the delay of the
projects.
In general ever since India decided to
encourage the strategy of infrastructure
 Page 39

development through private sector

participation, there have been new challenges
for the governance, which have not been met
adequately because of the political economy
prevailing in the country. The progress of the
infrastructure development in this period is
replete with the poor governance. In fact the
ability of Indian Government to choose the
reform options and to implement is totally
constrained by the political economy. It is not
proper for the Government to play the role of
facilitator without giving up the role of provider
and regulator in all sectors. The resistance
sometimes is due to ideological reasons and
sometimes due to political populism.
ICRIER had recommended the following
steps to revive and rejuvenate the programs of
infrastructure development in view of the
above facts described earlier.
Segregation of urban and rural supply
of electric power to fulfill consumer
expectations and enhancing the utility
accountability. As there are several differences
such as client needs, abilities to pay bills,
delivery challenges, subsidies to offer, economic
returns, thefts by non –metered agriculture
users. This segregation benefits private
participants to assess their viability, proper
 Page 40

investment proposals and chances to negotiate

with the Government.
As long as infrastructure was provided
entirely by the public sector, capacity building
was not an issue for investment and operation.
If the Government is emphasizing on the private
participation through ppp model, the newly
created regulatory institutions create a serious
constraint to carry out the new frameworks for
investment and operation. The noted
institutions will definitely deliver the best
training to the stakeholders of regulatory
management for capacity building with the
help of financial institutions and management
academicians who have well developed
relationships both with Government entities
and private sector sponsors.
To address the broader question of
consistency in approach to regulation, there
should be an overarching enabling legislation
for regulation in India. This will enable the role
and functions of the regulators and their
relationship with the executive and legislature
in developing a mature and competitive
market, ensuring universal access and providing
consumer protection.
Regulatory mechanism is very essential
for any project implementation. In the absence
 Page 41

of adequate regulatory framework most of the

projects get delayed in completion. Multiple
sequential clearances and approvals are
required at every stage right from the tender
process to post construction level from various
levels of Government departments.
Out of the above, environmental
clearances take undue time due to lack of clear
guidelines, lack of competent authorities,
complex procedures, introspection of various
departments such as forests, irrigation etc,.
Arranging funds is also a major problem for the
private sectors as it is very clear that Banks are
wary to finance for the new projects as it
became clear to the Banks that regulatory
hurdles were holding up the projects for which
they already financed. If the old projects had
gone well, finance possibly would not have
become a hurdle at all. Even the foreign
investors also started pulling back their
investments after series of scams and economic
slow downs. In conclusion, the infrastructure
development is possible as per the designs of
planning commission only if implementable
reforms are hastened up, transparent
procedures are laid down, regulatory
mechanism is set right, simplifying licensing
procedures, implementing single window
 Page 42

clearances, time bound disbursement of funds,

hammering out the corrupt practices, safe
guarding the interests of private and public
investors, providing security to the public and
PPP operatives in terms of returns on their
services and investments, keeping up overall
time schedules both by Government and
developers. In a democracy, a government that
has lost the confidence of its people, cannot
enjoy the confidence of anyone else.
When any proposal from Government
is announced and the participants attend for
tenders after due compliance of application
submission, caution deposit is paid, it is up to
the Government or its nominated department
to arrange a joint action committee, comprising
the heads of all the concerned ministries,
departments and bidders. The tenders are
opened up and scrutinised in open and finalise
the successful bidder and all the departments
issue the approvals on the spot. A reasonable
time is given to the bidder to arrange his
financial sources and submit his plan of action
to the Government with regards to schedules,
various stages of project for inspection by
regulatory body and time of completion of the
project . Main impetus is to be considered by
the Government with regards to other
 Page 43
infrastructure projects such as health care,
social services, urban infrastructure, education,
power, irrigation and others which are not in
the gambit of private or PPP operators due to
the obvious reasons namely high capital
intensive, unviable, not guaranteed returns,
vulnerable to the social factors, longer duration,
high maintenance costs etc. Government shall
allocate sufficient funds for these projects and
get them materialised through public sector or
direct implementation. The Government once
cleared the projects there should not be any
interference by way of objections, alterations,
sudden expansions etc, even if a new
Government formed by other parties. The
judiciary shall protect the interests of the
implementing agency if no prima face or
deliberate mistakes are committed by the
developer. Government shall protect the
interests of the private or public sectors who
are involved in developing the infrastructure by
guaranteeing minimum 10% margin of income
regularly so that they try to participate in future
expansions and new projects.
In India, regulatory and bureaucratic
constraints are the serious hurdles for the
infrastructure development. Numerous
avoidable delays in securing clearances, land
rights etc. often cause companies to fall short
 Page 44
of their targets and are forced to withdraw their
projects. Reforms are desperately needed to
bring out with transparent policies for project
executions to eliminate these constraints and
keep up the pace of infrastructure
development.
AGRICULTURE
Agriculture production plays an
important role in the GDP growth of any
country. India’s economy was predominantly
depending on agriculture to have the food
security to the ever increasing population.
Though the share of Agriculture production in
Indian economy is not much, but it is a deciding
factor for National GDP. Agriculture was the
only economic contribution next to commerce
and trade in India till the moghals ruled the
country. British rulers introduced the income
sources from industrial sector with the help of
infrastructure development. After the
independence Indian rulers realised the
necessity to develop this sector to have the
food security to the millions of population.
India has only 4.2% of water resource and 2.3%
of land in world’s resources that means 4 to 6
times lower than the world’s average but
agriculture supports 17% of world’s population.
Presently agriculture is supporting 58% of
Indian population hence, technology infusion
 Page 45

farmer welfare measures etc, were taken up

to improve agriculture production. India has
great professionals to assess the scenario of
agriculture, analyse concerning factors and
parameters, foresee the future, plan
ambitiously for future, estimate the budgets,
start various missions or departments, outline
the projections, forecast results, allocate the
funds, give high tech speeches, mesmerize the
farmers, financiers, scientific forums but very
poor in implementation. No matter how
advanced we are and rich we become entire
population is depending on food to survive. As
agriculture is in crisis in India, villagers are
forced to sell away their lands which are priced
high in modern India and settle in towns and
cities, farm workers migrate to other states in
search of jobs in industries or construction
sectors, youth either getting educated and
settling in urban areas, or searching for jobs
else where or becoming anti- social elements
by not only losing their lives but also causing
irreparable damage to the nation.
There are several lapses on the part
of the Government to visualise crux of the
agriculture scenario and bring reforms basing
on the ground realities. Days are yet to come
to revamp agricultural practices. The following
 Page 46

steps are most needed for the agriculture

development in India.
In the existing agriculture scenario of
India two major constraints for development
are 80% of land holdings are small farmers
having less than 5 acres and 70% of the lands
are rain fed with only rest irrigated. Nearly 55%
of population depends on farming as against
4% in US and other developed countries. Poor
capacity of the farmers to meet the input costs,
less or nil chances of getting loans, poor support
of price structure of the produce, nil or
negligible farm insurance, feeble marketing
backup, increasing labour cost, heavy or no
rains, pest damages etc, make Indian farming a
non-remunerative and 50% of farmers are in
debt trap.
As land holdings are very small,
cooperative farming system, covering one or
two adjacent villages can be implemented with
the initiation of village administration and
agriculture departments. Government shall
monitor the MOUs among farmers involved in
cooperative farming, agriculture departments
and agriculture universities must guide the
cooperatives to have scientific farming, Banks
will definitely come forward to extend financial
support to the cooperatives, inputs can be
 Page 47

supplied by the industries and corporate

retailers directly without the mediator or a
trader, Government sponsored marketing
system will have a tie up to market the produce
of the cooperatives, educated youth of the
villages will have a greater role in managing and
the profits can be shared by the stakeholders
with the help of chartered accountants. It is
worth if Government comes forward to
encourage such farming systems at least in
some poor states as on experimental basis.
Precision farming is very essential in
India in applying right fertilizer in right time,
pesticides in right quantities, watering, de-
weeding, harvesting and packing in scientific
way. Total mechanisation is very much advisable
as in advanced countries but Indian farmers can
not afford. The concept of leasing machines of
all sorts including drip irrigation and sprinklers
from leasing companies or agencies against the
payment on hourly basis or acre wise is worth
to extend further. Such thing is already existing
on a limited scale in India. Government should
encourage such companies by supporting them
with finances or providing heavy machineries
from other developed countries. As the farmers
are more benefitted with labour- less farming
and getting more yields, more and more farmer
 Page 48

groups come up and more companies come

forward to expand their business for mutual
benefit. Like in developed countries if small
drones and robots are employed in India the
agriculture output definitely increase. Such
things are possible only with leasing companies
to maintain and manage.
In India there are several Agriculture
universities, Research institutes, extension
centers, agriculture departments of
Government at mandal, taluk and district level
with qualified officers and many NGOs involving
in agriculture development. Government is
spending cognizable amounts in the form of
seed subsidy, power subsidy, fertilizer subsidy,
to a little extent insurance coverage for the
growth of agriculture and farmer community.
But the result is negligible, agriculture out put
per capita or per hector is still far below the
global average, farmer economy is not
improved--, migration of them is still at large,
the loss of crops due to drought conditions and
pests and poor yields are still un answered.
Every year agriculture research projects are
being completed, several strains are developed,
papers are published in international journals,
scientists are getting promotions, hikes in
salaries and perks but the agriculture
production is getting deteriorated year by year.
 Page 49
It is quite evident that the scientific and
technological developments are restricted to
the universities, institutions and extension
centers and their experimental plots only. Who
will take the developments in research to the
farmers and fields. Why the scientific
community is not accountable or responsible
for the growth of agriculture in India. Why not
the Government make it mandatory for the
improvement of the agriculture economy.
Developed countries implement
Biotechnology seeds in a large scale and
enjoying higher yields both in quantity and
quality due to drought resistance, pest
resistance and avoidance of sowing regenerated
seeds. While the agriculture produce from such
Biotech seeds are being consumed by the
population of those countries why India is
against it. Is it the lobby of the concerned
industries or the politicians or the scientific
community responsible for this. India is yet to
use Bio fertilizers adequately, organic manure
in an exclusive extent to produce organic
products which are catching up worldwide.
Main reason seems to be viability of agriculture
in economic point of you is not encouraging in
general.
Some of the private entrepreneurs are coming
forward with new concepts to educate and train
 Page 50

the village farmers. They are visiting the villages,

interacting with the farming community,
arranging video shows on the agriculture
practices, identifying one or two progressive
farmers or enthusiasts and giving them training
in best practices. The trained persons in turn
educate the rest of the farmers periodically
through video classes and interactive sessions.
This type of educating and training systems have
not picked up in India because the stake holders
are entrepreneurs and expect returns for their
efforts. But our farming community is rather
conservative or not affordable or do not want
to spend. Indian farmers’ psychology at present
is harping on freebies, as a right to get from
Government, self elite etc. Under these
circumstances Government may make
Universities, Institutions and extension centers,
departmental field officers to take up such jobs
as mandatory. This concept may work out
successful in achieving the target of agriculture
development.
A productive, competitive, diversified
and sustainable agricultural sector need to
emerge at an accelerated pace. Government
shall implement their infrastructure
development in arranging irrigated water and
drainage systems to the farming community for
improving agriculture out put. It is a known fact
 Page 51

that the water consumer forums of the farmers

are not managing the distribution of water
properly due to high handedness of a few high
end farmers and local politicians. A reform is
to be brought out in redesigning such forums
with a Government representatives or retired
higher officials or professors of that area to
monitor.
The farming community has to be made
aware of the impacts of rains or no rains, un
timely rains, floods, cyclones, pest attacks,
market trends etc. It is very common the
farmers of one area suffer due to any of the
factors mentioned. Government is also
cautioning them to either diversify the cropping
patterns, adapt alternate cropping system, crop
holiday etc, to avoid the break down of farmers’
income. At times certain products do not have
domestic markets and prices crash leaving the
farmers in logger heads. Government is trying
to arrange alternate markets or purchase and
keep in the warehouses to save the farmers and
to stabilise the prices. Still every year troubles
are shooting up in one corner of the country or
other. Hence, Government has to take a
comprehensive mechanism to have a control
over crop selection by the farmers there by the
farmers of one area do not grow vulnerable
 Page 52

crops due to weak or no markets. Another

major problem the farmers are facing is middle
men in the market yards who are exploiting all
sorts of gimmicks to shred the profits of the
farmers by collecting higher commissions,
misleading the farmers in fixing the market
rates, collecting other charges like loading and
unloading charges, cleaning charges indirectly,
demanding 10% extra produce over and above
the declared quantities, withholding a part of
amounts etc. Even the market committee staff
indulges in malpractices by not helping the
farmers and colludes with the middlemen and
add miseries to the farmers. Governments of
all states in India are of the opinion that they
are supporting the farmers by constructing
market yards, providing amenities and covered
spaces for the farmers to keep their produce
for sale, establishing offices and appointing
officers to look after farmers in marketing their
products, to collect agriculture cess from them
etc. Only a few states like Andhra Pradesh and
Telengana had introduced rythu bazaars in the
towns and cities facilitating the farmers to bring
their produce and sell to the consumers directly
under the control of Government officials of the
rythu bazaars. This system is very well working
satisfactorily and benefitting both farmers and
consumers especially with respect to
 Page 53

vegetables. If the Governments plug certain

loop wholes even in this system such as
middlemen getting in as farmers and by
providing sufficient spaces for the farmers to
keep their stuff for display and sale, cold storage
facilities, hygienic conditions, amenities like rest
rooms, water supply, extending the services for
other commodities such as rice, grains, fruits
only to the farmers etc.. this system of direct
marketing of products by the farmers is the
best.Both states and centre Governments had
taken up several programs and projects to
infuse both monetary support and technology
adaption in various states to boost the
agriculture. As the growth is not proportionate
to the efforts taken, Government has to review
all the projects and missions and initiate for
strict implementation. Unless the farmers and
departmental personnel are involved sincerely
no growth rate improvement is possible in this
sector.
There is a good sign of improvement in
private investments in agriculture sector. More
and more agribusiness companies are involving
to introduce new models to reach out the
farmers and consumers, providing new
technologies, investing more in modern supply
chains and in organised food retailing.
 Page 54
It is very essential to give more
preference by the Government in improving the
rural infrastructure such as good road
connectivity, storage ware houses, power
supply, assured irrigated water, water shed
management and information/extension
centers etc, which will result in faster growth in
agriculture.
Yet another major step the Government
has to seriously consider is the finance to the
farming community. Though several
cooperative banks, schedule banks,
Government schemes, subsidies, market
support prices, private companies extending
agriculture inputs such as seeds, fertilisers,
pesticides as loans, and Self Help Groups lending
loans to the farmers, still farmers are unable to
manage the input costs, labour costs,
transportation costs. Most of the times the
profitability is eroded due to several factors
mentioned earlier and the farmers are pushed
into debt traps. Banks are not in a position to
extend further loans when the earlier loans are
not cleared with interests. Due to pressures of
the Government, banks are over paying the
loans and succumbing to the losses. As most of
the farmers are marginal and poor economically,
unable to meet their escalating agriculture
input costs, spiraling cost of living, increasing
 Page 55
family strength, cost of education, cost of
health care, exposure to luxuries to some
extent, addiction to alcohol. Thus the farmers
are not in a position to invest their sums in the
agriculture and getting converted as labourers
in urban areas. Hence, Government has to
reform the agriculture finance mechanism by
implementing some of the methods mentioned
earlier.
In India crop insurance programs are
not holistic and failure in many respects. So
many factors such as several types of crops
are raised in small areas of one to two hectors
even which is vulnerable for cross infestations
for no fault of insurance company. The stake
holder farmers are small with very small land
holdings, assessing the actual losses is a
herculean task both for the insurance
companies and the Government, natural
calamities are not specific and uniform in all
areas, farmers are not ready to accept their
lapses in raising the crops and agriculture
practices they adapted, role of bribery, lengthy
procedures are also responsible for the dismal
performance of the insurance schemes. As it is
not feasible to the insurance companies to
undertake crop insurance policies for small
scale levels and only alternate proposal for
protection of farmers interests is continuing the
 Page 56

present practice of compensation by the

Government. The mechanism of paying
compensation must be scientific and open so
that no controversies, illegal claims and
litigations crop up. The crop loss assessments
must be entrusted to nearest University or
Institute and the payments must be through
direct transfers to Bank accounts of the farmers.
Certain drawbacks in agriculture sector
are also to be addressed by the Government
such as regeneration of depleting water
resources, avoiding soil and water pollution,
controlling the large emissions of green house
gases etc. Also it is necessary to implement new
and advanced technologies such as cultivation
of rice and wheat under aerobic conditions, use
of bio-fertilizers, bio-pesticides and adaption of
organic farming.
MANUFACTURING SECTOR
Another major sector, manufacturing
sector needs a greater outlook in raising the
level of competitiveness which is crucial to
India’s high growth regime and to ensure
adequate employment generation. Since, low
employment elasticity in the manufacturing
sector in recent years is partly explained by
restructuring of the sector in response to
competition and non-sustenance which has
 Page 57
resulted in job shedding, as well as labour
market rigidities. Hence, substative reforms are
needed to increase the employment in the
manufacturing sector and reduce the dichotomy
between the organised and unorganised sectors.
Improvement of fiscal structure of excise duties,
taxes, rationalising the subsidies, enhancing the
credit worthiness, reducing the infrastructural
bottlenecks and reforming the labour laws.
Apart from the employment and competitive
hurdles two more challenges faced by Indian
manufacturing sector such as developing
production capabilities for mass manufacturing
and low volume high variety products and
ensuring development and implementation of
new technology to enhance productivity are also
crucial for India. Fortunately large volume
operations were already started in India but the
stakeholders including policy makers must
ensure the continuity by providing the sufficient
lead time, creating adequate skills,
strengthening the networking of improving
quality and quantity of technical manpower,
supporting appropriate scale of operations and
attracting world class R&D and technical
knowhow.
Finally it is suggested that Indian
agriculture must be converted into a corporate
industry like power sector by integrating the
 Page 58
farming community, private investors and
Government. The cultivable lands must be
grouped into bigger plots for cooperative
farming where all the farmers who are the
members of the society must be participating
and working partners. The retail chain groups
invest for the agriculture working capital as
share holders of the society and the food
corporation of India will be the management
partners. The Board of directors from all the
three entities govern the society. In such case
the cooperative body can enjoy all the facilities
expressed above including insurance coverage
and marketing facilities both in Indian
consumption and exports.
POWER SECTOR
It is very well known factor in the whole
world that Electric Power is one of the most
important ingredient for the development of
the nations. It is required for the survival of
the humanity almost equal to water and
oxygen. Power is needed not only for
illumination of huts to 5 star hotels, small
villages to mega cities, a cycle rickshaw stand
to an International airport, a tiny industry to
mega industry, a tiny moped to supersonic jets
apart from life saving hospitals to space
research centers. Any national growth and
development by virtue of productivity is
 Page 59
possible with the help of power and power
interlinked human prosperity. India is lagging
behind by China to the extent of 25% in power
generation and thus the difference in GDP is
reflected. India is achieving about 97 to 99% of
its target in power generation in this decade
with a 6 to 8% growth every year. It is a
tremendous sign of improvement in power
sector. Now it is the task to India to increase
the installation of power plants to gear up the
economy. Nearly 70% of the power production
is thermal, based on coal to a maximum extent.
Though India has enormous coal reserves but
we can not rely on them totally for sustenance.
Importing the coal is necessiated from the
global markets during crisis and when the
international prices are comparatively low. Less
production coupled with increased demand
from power plants is further widening the
demand-supply gap in the country, which is
likely to widen to 185.5 Million Tonnes in 2016-
17. The Centre has announced plans to boost
Coal India’s annual production to the level of 1
billion tonnes by 2019 to meet growing fuel
demand.
Government of India had enacted
Electricity Act 2003 which came into force from
15.06.2003. The objective is to introduce
competition, protect consumer’s interests and
 Page 60

provide power for all. The Act provides for

National Electricity Policy, Rural Electrification,
Open access in transmission, phased open
access in distribution, mandatory SERCs,
license free generation and distribution, power
trading, mandatory metering and stringent
penalties for theft of electricity. In general
Government is serious and progressive in
improving power sector. Major challenges are
yet to be addressed for the implementation of
power projects. Parallel development of rail
lines for meeting the need of transportation of
coal, labour problems at the mines, political
ditches in allocation of coal fields to the
genuine industries, land acquisitions for setting
up new plants which appears to be very crucial
and critical due to resistance from farmers or
residents and failures of Government in
rehabilitation of displaced people and settling
compensations etc.
India’s major consumption of diesel,
after transportation needs, is for an alternate
power generation. Diesel generators are being
employed for power generation by railways,
trucks, buses, cars,industries, residential,
commercial and agriculture. Nearly 15 million
tonnes of diesel oil is being consumed by the
above per annum and nearly 80 billion kwh
electricity is generated to supplement the short
 Page 61
fall of power or lack of transmission lines and
links to every consumer end. This diesel based
power generation is very much costlier to the
consumers and indirectly costing a lot on fuel
and import bills to the country. It is thus clear
unless Government develops the infrastructure
of power transmission network to all the
remote villages and agriculture fields and supply
the power uninterruptedly the national
economy can not look upwards.
Most of the coal based power plants
are not generating power to the level of
declared capacity due to several factors such
as human inefficiency, poor quality of coal,
delayed supply of coal, poor maintenance or
negligence on the part of technical staff,
obsolete technology in some plants, lack of
expansions in some states etc,. Nearly 15% of
shortfall is noticed in power out put in these
plants which is responsible for not maintaining
the grid stabilization. This has to be addressed
with strict auditing and inspection mechanism.
The residential sector is the largest
consumers of power in India. Continuous
urbanisation and growth of population resulted
in increasing power consumption. Experts on
the initiation of Government, expressed that
the conservation of power in this sector is a
must by using latest generation of lamps,
 Page 62
installing solar panels on the roof tops both for
lighting and water heating, replacing the
agriculture pump sets by solar pumps, replacing
old appliances with latest power saving units
such as air conditioners, refrigerators, TVs etc.
Government may have to pass the rules to that
effect so as the rich people, offices and
industries to take all the steps to conserve the
power and help the national economy.
India is facing a severe shortage of coal
despite abundant reserves of coal are available.
The country is not producing enough to feed its
power plants. Some plants do not have reserve
coal supplies to last a day of operations. Major
plants are importing the coal for definite supply
reserves as the quality is also superior. India’s
monopoly coal producer, state-controlled Coal
India, is constrained by primitive mining
techniques and is rife with theft and corruption;
Coal India has consistently missed production
targets and growth targets. Poor coal transport
infrastructure has worsened these problems. To
expand its coal production capacity, Coal India
needs to mine new deposits. However, most of
India’s coal lies under protected forests or
designated tribal lands. Any mining activity or
land acquisition for infrastructure in these coal-
rich areas of India, has been rife with political
demonstrations, social activism and public
 Page 63

interest litigations. Similarly fossil fuel and

natural gas supply is also not enough to cater
to existing fuel based power plants, The key oil
exploring companies such as ONGC, Reliance
and others are unable to explore to the full
extent due to many factors. Hence, the import
bill is sky rocketing year by year. Many gas
based units are shut down due to no supply of
gas. State Governments and central
Government are unable to solve the problems
pertaining to the contractual terms with the oil
companies under the guise of political
differences.
Hydroelectric power projects in India’s
mountainous north and north east regions have
been slowed down by ecological, environmental
and rehabilitation controversies, coupled with
public interest litigations. The hydroelectric
plants in other states including south India are
purely dependent on rains, storage of water in
reservoirs and inter state sharing issues. Almost
all the dams are constructed in India for the
agriculture purposes but where ever the
geographical advantages are there
hydroelectric plants are also installed to
produce power. As the population is growing
exponentially the need of drinking water and
food production is also increasing leaving no
adequate levels in the reservoirs to divert for
 Page 64

hydroelectric power generation. The concept

of lift irrigation to cover the maximum area for
cultivation is catching up in India with a view to
inter link the rivers to save the water that is
drained into sea. It is worth for the planners to
design hydroelectric plants suitable to utilize the
water force of lift irrigated water while flowing
in the pipe lines or at delivery end to produce
the power.Nuclear power generation in India is
in nascent stage still. Though our nuclear plants
at Mumbai and Kalpakkam are successful in
producing power but at much higher cost
compared to conventional power generation.
The initial investment is an inhibiting factor for
new plants to set up. . Apart from financial part,
political activism, fear of human safety, question
of environmental hazards if accidents occur,
intensive public resistance in the areas
proposed to set up the nuclear plants and
International policies on nuclear raw material
and equipments manufacturing or importing
are also playing a major role obstructing the
development of nuclear power plants in India.
Other major factors such as theft of
power, transmission losses, failure of service
connections, shortage of power storage houses
especially in rural areas, incomplete up-
gradation of technology in power houses are
responsible for the power Diaspora in India. The
 Page 65
theft of power by the farmers due to illegal
drawing from the power lines for agriculture
purposes and by the industries through
manipulations, illegal connections, collusion
with the electric line men are to be plugged by
enhancing the vigilance mechanism, by
updating the power controls and measuring
devises and by punishing the culprits severely.
Average transmission, distribution and
consumer-level losses are exceeding 30%,
which includes auxiliary power consumption of
thermal power stations, fictitious electricity
generation by wind generators & independent
power producers.
Capital funds crunch faced by state run
transmission and distribution departments is
another factor for the poor development of
Power sector in India. Subsidies offered to
residential consumers, free electricity schemes
to the poor people and agriculture farmers for
political gains, non payment of bills by
Government departments and some corporate
industries escalating the losses of the sector.
Pegging loopholes, proper implementation of
Projects is the answer
INDUSTRIAL DEVELOPMENT
Another significant constraint for the
growth of Indian economy is the tardy
industrial growth. Though India is in
 Page 66
progressive industrial growth in some sectors
such as telecommunications, space and missile,
other basic core sectors like power, steel,
cement have achieved more or less self
sufficiency. But modernisation of industries,
development of Research and Development
centres in all sectors, utilising all the natural
resources to produce the final products to
improve the international trade, enhanceing
the employment opportunities, improveing the
assets to develop capital formation, upgradeing
the technologically poor developed sectors like
agriculture, alleviate the poverty are very
crusial steps. Industrial development helps in
the rapid growth of National and per capita
income of a country. The history of economic
development of advanced countries shows that
there is a close relation between the level of
industrial development and the level of
national and per capita income. The share of
industrial sector to national income was 26%
and per capita income was 36,240 dollars in
USA in the year 2000 where as in Japan the
figures are 36% and 36,210 dollars
respectively. Comparatively our Indian share
was 28.5% and Rs 16,486 only respectively.
India needs establishment of new Industries
exploring hidden resources at any cost and risks
to boost GDP by providing employment to
 Page 67

youth, by adaptaing modern technologies,by

produsing quality products at low costs to
compete in the globel markets and by
amending the corporate functioning and
controsting financial mechanisms adapted by
them so for.
ROLE OF JUDICIAL SYSTEM
In India over thirty million cases are
pending in various courts. Delay in judicial
system indirectly hampers the economic status
of a country by way of stalling the productions,
continuation of frauds, misuse of powers,
postponement of developmental programs for
want of clearances and many more.
The personnel in the judicial system
including of judges in law courts, police,
prosecuting personnel, prisons etc, including
the Supreme Court of India at its apex, shall be
improved. At present cases in Indian courts can
drag on for years and years, even decades.
National economy is so badly hit due
to 30 million cases pending in the courts and
14 million cases filed every year. Property
matters involving billions of rupees have
remained pending for over three decades.
Majority of the people jailed are the so called
“under trials,” that is people incarcerated to
ensure their appearance in court. Most of them
 Page 68

are so poor that they can not furnish bail and

so remain in jail indefinitely simply to ensure
court appearance. Because of court congestion
and delays, thousands languish in jails much
longer than they would if tried expeditiously.
Some time back a Doordarshan telecast had
shown an under trial prisoner in Tihar jail
complaining that he had not been taken to a
court for three years and that he might die
before a hearing took place. Thousands are
serving out their sentences in prison even
before their innocence or guilt is pronounced.
Hundreds in death rows are awaiting final
verdict for over a decade. Criminal elements in
India are seemingly not afraid of the law. Every
country, whether rich or poor, developed or
under developed, has its criminal elements.
These are the persons who will not hesitate to
commit a crime in order to gain some
advantage. However, in countries where judicial
system works in a timely manner, these
elements are kept in check. In these countries
criminals are caught, prosecuted and punished
expeditiously. This acts as a deterrence to all
kinds of criminal activities. In India however,
because of very slow judiciary system, criminal
elements seem to have a field day. Even if
caught, they can expect to get their cases
postponed indefinitely and avoid justice. This
 Page 69

encourages others to commit crime. This is the

reason why we find corruption and other crimes
being rather prevalent in the country. It is more
or less like a social epidemic, which must be
eradicated in order to enhance the health of a
society. It is generally not very much
appreciated that weakness in the judiciary has
very serious economic consequences as well.
It tends to reduce the sanctity, clarity and
enforceability of all contracts and as a result
there is lower investment than what would
otherwise be possible and therefore lower job
growth and greater poverty in the country.
A strong connection between the slow
judicial system and economic development in
India is established as a result of 1.Increased
corruption in the country. Corruption increases
business costs because the businesses have to
pay bribes in order to survive. 2.Made people
avoid economic activities that may require
court help. It is common knowledge in India that
people do not rent out their premises even
when they are lying vacant, because they are
afraid they will never gain control of the
premises again and evicting the tenant is an
impossible task without court help. Because of
over zealous protection of tenants’ rights in
India. It may take over 10 years or more to get
their premises vacated. For the same reason
 Page 70

people do not build a large number of rental

apartments in India, even though there is
tremendous demand for it. 3.Increased
transaction costs and risk factors for businesses
due to uncertainty of contract enforcement.
This creates inflationary pressures in the
economy 4. Force people tend to stay away
from the court system either by devising
alternate dispute resolution systems or by
avoiding any economic activity in order to be
successful.
Alternate systems may not be always
bad but the problem is that they are not
universally applicable. One can go to any
advanced country in the world and find a very
large number of rental apartment complexes
big and small. However in India one cannot find
such complexes. The country as a result suffers
a loss of huge amounts of investment in
apartment construction and loses millions of
jobs that could be created in construction and
maintenance of rental apartments, while
millions of honest, hard working people end
up in slums for lack of suitable and affordable
rental housing. The slowness in the judicial
process is thus directly responsible for this
acute shortage of rental housing, thereby
imposing miserable living conditions on
 Page 71

millions of honest citizens. A very large

percentage of economic activity requires
people to enter into some sort of contracts with
each other. Most contracts are honoured
because of their customary nature, but there
is an underlying assumption that the contracts
can be enforced through the judicial system, if
need arises. When this assumption becomes
shaky because of slowness in the judicial
process, the economic system is in trouble.
While the impact of the enforcement of a single
contract is only marginal or even zero, the
anticipated future enforcement of rights is
extremely important for current decisions,
contracts, and future activities of all
participants. People will avoid entering into
contracts and business relationships, if they
perceive that these contracts can not be
enforced. All economic activity involves ‘buy
and sell’, ‘give and take’ or quid pro quo. That
economic activity where the quid happens at
one time and quo happens later does require
the presence of a robust judicial system.
Examples of these types of activities are all
kinds of insurance, i.e. life insurance, health
insurance, accident insurance and insurance
against all kinds of risks, like fire etc., as also
borrowing and lending activities. With a weak
judicial system insurance becomes very risky.
 Page 72
One is paying premiums all the time but is
never sure if the insurance company will
honour the contract if and when the event
insured against actually occurs. In these
circumstances the insurance industry can
never develop properly and therefore a very
large number of jobs and insurance related
income are never generated, and companies
can not hedge their risks. In the same way
lending money to potential borrowers
becomes very risky. Lending money is risky as
it is, but a weak judicial system creates
additional risk. As a result lenders require a
steep risk premium in order to cover
themselves against default. The result is very
high interest rates on loans. In India some
private money lenders charge interest rates of
24% and higher. This again affects investment
and job creation very negatively, because
higher the interest rates lower the investment.
The third adverse consequence of a weak
judicial system is that it increases transaction
costs. Any manufacturer or supplier is faced
with two types of costs. One is the cost of
transformation or actual production and the
other is the transaction cost i.e. cost of
obtaining information, cost of negotiation,
monitoring, coordination and enforcement of
exchange. In a simple peasant economy, the
 Page 73

production costs are very high, but the

transaction costs are very little or none,
because exchange is mostly cash and carry and
is between people who know each other.
However, in the modern complex economy with
division of labor and large scale production, the
production costs have declined but the
transaction costs have greatly increased. Take
for example the case of bicycle assembly
business. This business has to buy a large
number of parts with particular specifications,
such as frames, wheels, spokes, mudguards,
seats etc from different suppliers. Sometimes
this business may have to enter into a contract
whereby a supplier undertakes to make the
contract-specific investment to produce a part
of particular specifications. Thus there are
multiple exchanges and some may be long-term
contracts. Such contracts create a great scope
for opportunistic behaviour like cheating,
shirking, asking for more money by not
supplying on time etc. These contracts must be
easily enforceable in a court of law. A weak
judicial system increases uncertainty as to
whether or not the contract will be enforced.
This leads to higher risk premiums and higher
transaction costs. In turn this leads to higher
total costs and higher prices for the buyers of
bicycles. To summarize, a weak judicial system
 Page 74
causes higher costs of production due to
increased corruption in government sectors,
higher costs and total avoidance of certain vital
economic activities due to uncertain contract
enforcements, higher transaction costs and
therefore higher prices for the citizens and a
general inflationary bias in the economy.
Wolfgang K. C. Kohling studied the
quality of the judicial system and the economic
development of Indian states and union
territories. He measured the quality of the
judicial system by the speed of decisions and
by the number of appeals allowed. The longer
the average time taken to decide a case and the
greater the number of appeals allowed, the
weaker is the judicial system. In his article
entitled “Economic Consequences of a Weak
Judiciary: Insights from India, Center for
Economic Development Research, University of
Bonn, Germany 2000” he reported that a weak
judicial system had strong negative effects on
economic development, leading to lower per
capita incomes, higher poverty rates, poorer
public infrastructure and higher crime rates. He
estimated that streamlining the judicial system
will increase per capita GDP growth rates by 2%
per annum.
This is an extremely high payoff for an
investment in improving the judicial system.
 Page 75

The World Bank’s 2014 report on doing

business, which compares business regulations
for domestic firms in 189 economies, ranks
India on 134th position among 189 countries
with respect to ease of doing business and ranks
it on 186th position with respect to
enforcement of contracts. This is based on
factors such as time, cost and the procedural
complexity of resolving a commercial dispute.
If India desires to be recognized as a destination
of choice for trade and commerce, it is
imperative to focus on building an effective
judicial system as an integral part of the
economic reform agenda. Sadly, this is receiving
little or no attention from decision makers. As
a result the problem has aggravated over a
period of time.
If the justice is accelerated, billions of
Rupees blocked in litigation against projects in
several parts of the country can be freed and
can avail it to be put to productive use. Or else,
potential investors will look elsewhere for their
investment. Investors want decision in
reasonable time. Millions of our countrymen
who stand to gain in terms of jobs and
opportunities at various levels, upstream and
downstream are deprived. As per the
Department of Justice (as quoted in a 2013
 Page 76

report of the Committee on Empowerment of

Women, Lok Sabha), India has 18,000 judges
at the subordinate level, which comes up to
about 13 judges per million. This is against 50
judges per million in developed countries and
35-40 in some developing countries. This clearly
indicates the shortfall of justice scenario in
India.
Finally, in a globalized economic
environment, we need specialized courts to
deal with commercial matters. One of the Law
Commission reports noted that the US and UK
courts are increasingly admitting cases which
ought to have been filed before Indian courts
on the ground that in India almost all cases take
25 years for disposal. This, in a time when it is
“business at the speed of thought”, to use the
title of a Bill Gates book.
We, today have a government
committed to economic reforms but no
economic reforms can succeed unless the
judicial limb is strengthened. This must be given
the highest priority to ensure the desired results
out of the far-ranging and impactful reforms we
are all looking forward to.
CORRUPTION
Corruption is a major issue that adversely
affects the economy of India. A report of
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Transparency International in the year 2005

showed that more than 62% of Indians had first
hand experience of paying bribes to get jobs in
public offices. It ranked India at 85th out of 175
countries in the year 2015.
Corruption is so widespread in India
that many people regard it as a way of life. It
has its roots from time immemorial in one form
or other. It started with opportunistic leaders
who have already done greater damage to our
Nation. The result of illegal transactions among
politicians, bureaucrats, people from gross
roots and criminals from all walks of life is the
corruption. Earlier bribing had come into
practice for getting wrong things done but now
it is practiced for getting right things done in
right time. Corruption has become something
respectable and granted privilege because
respectable people are involved in it. Social
corruption like delivering less weights of the
products, adulteration of all sorts of goods,
evasion of taxes, illegal hording of stocks to hike
the prices, cheating the farmers while
procurement of their produce etc, are prevailed
in the society. It is the perception of the society
that Government does not control or
discourage the corruption as the operatives of
Government are highly corrupted. Many
 Page 78
government officials expect bribes for doing
their regular duties. Even if a government
official is caught red handed, the case has to go
through the court system before the culprit is
punished, and there it can take a decade to get
the final verdict. Thus corrupt officials by and
large go unpunished.
Corruption has impacted the growth of
India to a greater extent. Political corruption is
the worst in India. It has become an all pervasive
feature in the functioning of the Government
right from the independence. Elections
everywhere in India are associated with a host
of criminal activities as more and more
politicians are criminals. Threatening voters to
vote for the particular party candidate, luring
them with money and liquor, physically
preventing the people to vote to their choice,
hijacking the ballot boxes, pushing their party
workers for duplicating the voting, manipulating
the voters lists, purchasing the election
invigilators and police men, changing the
parties for vested interests, purchasing elected
leaders by luring them with ministerial births
or chairmen posts or offering Government
contracts or huge money and many more types
of corruptive practices of the politicians. The
Government does not act until there is a crisis
or unless its actions would help to secure more
 Page 79

votes for winning in the elections to come to

power. Indian population so far did not achieve
electoral dividends except the poor ones sell
their votes for meager amounts and liquor.
This corruption is highly detrimental to
economic development because it imposes
extra burdens on both the private and the
public. In the private sector, corruption imposes
additional costs on the businesses as they are
expected to pay bribes to a large number of
inspectors. In a study in Indonesia, firms
reported spending 8% of their total cost on
bribes and over 10% of the management time
in smoothing local officials. In India, the costs
would be 15 to 25%. Most of the small to
medium businesses in India, are not operating
in a monopolistic situation because of intense
competition and these firms can not transfer
all these costs to customers in the form of
higher prices and/or lower quality. If anyone
tries to do that he may find himself out of
business in no time. Take for example the case
of a business, engaged in the manufacture of
step down electrical transformers. These
businesses typically employ about thirty
workers, but have to deal with nearly 15
inspectors such as labour inspector, sales tax
inspector, pollution control inspector, public
health inspector, electrical inspector, fire
 Page 80

inspector, police etc. Many of these inspectors

may have to be bribed on a regular basis.
Therefore profits can easily disappear and small
profits can turn into losses. This makes the
business and investors to divert their plans. The
small firms are thus prevented from growing
bigger and the country therefore loses millions
of rupees worth of investment and thousands
of additional jobs that would have been created
if these investments had in fact taken place.
Another distortion that corruption creates is
shielding firms whose owners have connections
in high places and can more easily internalize
the cost of corruption. They can have one or
more employees specifically to take care of
corrupt officials and thus the management is
not unduly bothered. Low income small
businesses can not afford to bribe and thus lose
their share. The country as a whole loses out
the real revenue because large firms tend to
be more monopolistic and are able to charge
higher prices to the consumers and conceal
their profits to avoid taxes.
In the public sector, corruption tends
to divert pubic investment into projects where
bribes and kickbacks are more plentiful.
Projects may be made unnecessarily more
complicated and luxuriously enlarged where
discretion of the officials may become an
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important factor. Corruption also tends to lower

compliance in public construction works, like
infrastructure, roads, bridges, etc.. In general,
corruption reduces the quality of government
services and increases budgetary pressures.
Main sources of corruption in India are
entitlement programs and social welfare
schemes implemented by the Government.
Most vulnerable to the corruption is also
noticed in transportation industry which is
forced to shred bribes at regular intervals to
numerous regulatory departments and police
on normal and interstate highways. The World
Bank has done extensive research on the role
of governance on economic development and
has found that corruption and the absence of
rule of law is a major impediment in economic
development. Countries that have high
corruption levels remain mired in poverty and
squalor.
The causes of corruption in India
include excessive regulations, complicated taxes
and licensing systems. Numerous government
departments each with opaque bureaucracy
with discretionary powers, monopoly by
government controlled institutions on certain
goods and services delivery and the lack of
transparent laws and processes are the building
 Page 82
blocks of corruption. There are significant
variations in level of corruption as well as in
government efforts to reduce corruption across
India.
Corruption in goods transportation
sector is the highest and transparent
phenomenon in India. The travel time of nearly
11 hours is lost for the truckers in a day due to
stoppages at check posts, entry points, traffic
centers and on the high way at random by the
concerned authorities like government
regulators, police, forest officials, sales and
excise staff, Octroi controllers, weighing and
measurement department personnel etc, for
extorting money from the transporters.
National loss due to unproductive stoppages
and loss of fuel, encumbrances of truck
operators, indirect loss to the business sector
for the delayed supplies of goods totally reflect
on the economy of the country. Trucks can
make 40% more trips if corruption oriented loss
of time is avoided. But the angle of
malpractices of the traders and truck operators
is also an important point to be considered. As
said earlier higher taxes, complicated
procedures, adaptability for illegal and corrupt
practices are the main causes.
Another area of intensive corruption is
registration department. Registering authority
 Page 83
and staff exploit the people who intend to sell
or buy the properties in connivance of the
mediators by pointing out some flaw in
documents or documentation, misguidance of
rules, delaying processing, demand of
unnecessary links or documents etc,. For every
registration in general nearly 10 to 15% of the
value of the property goes to the kitty of the
officials. Adequate stamp papers are not
available with the departments and people
depend on agents who maintain stocks always
and demand extra commission of minimum Rs
20 for every stamp paper valued even Rs 10 and
commission goes up basing on the value of
stamp paper. The agents lament that a part of
the commission goes to the departmental staff.
The income of the concerned officials sours
unlimitedly for the fraudulent registrations by
the property mafia who even creates duplicate
documents, alters the originals, mitigate the old
revenue records, forge any document etc. Even
politicians also play an important role in
converting Government, endowment lands and
assigned lands as private properties in byname
names. In many cases of registrations, the
procedures are not followed to implicate the
buyers and sellers of the properties and the
concerned authorities enjoy double benefits
in terms of bribes to set them right. There are
 Page 84

boundless cases where in the registration

departments do not pass on the information
to the revenue and other concerned
departments for updating the changes in their
records. Registration of such properties in the
future will be a herculean task and it costs a lot
to the incumbents for giving away the bribes to
both the departments. There are innumerable
instances where the Government allot and
register in the favour of many residents or
agriculturists either as compensation in lieu for
the acquisition of private properties for various
purposes but this will not reflect in revenue
records thereby the subject property still
continue to be Government property. If the
beneficiaries try to sell and register such
properties the registration departments
demand for no-objection certificates from the
revenue department. These type of issues are
solved only through underhand/under table
dealings. It is needless to quote such cases to
explain the rampant corruption in the society.
It is not a surprise to note that almost all the
state Governments are highly concerned for the
maximum revenue generation from
registrations. Hence, high level of corruption.
It is said and heard that the booty is shared to
the higher ups and elected members and
bureaucrats of the vicious circle. Even anti-
 Page 85

corruption department is unable to control it

in spite of regular raids and in many cases they
are also being the part of the game in general.
The corruption practices in the revenue
departments are known to the universe as mn
morals, no ethics, no sympathies, no
considerations what so ever. The worst part of
it is even the genuine transactions are being
subjected to bribes and harassment by way of
going round to the departments for months and
years together to get things done. The
departments delays abnormally to scrutinize
the files, pass on to next authority with their
jottings, put up to the highest bureaucrats and
then to the ministers concerned etc. Even
simple survey of properties, subdivisions, issue
of pattas, issue of revenue certificates, updating
the ownership changes in their records or
anything as a matter of fact are processed and
passed and recorded only under the influence
of bribes.
Corruption in the form of scandals and
kick backs are very much predominant in the
Government, who ever the democratically
elected parties rule, in the public sector
undertakings and corporate companies. The
level of monetary bribes at the departments as
described above, are nothing when compared
to scandals and kick backs at higher levels. At
 Page 86

Government level central and states allot and

release funds for various schemes especially
social welfare schemes are miss utilised and
swindled at all levels and only a part of the
funds reach the beneficiaries. It is quite evident
that the poverty could not be eradicated even
in 68 years after the independence to the
country. India could not provide housing and
education to the poor to the targeted level.
Subsidies announced for the poor and marginal
people could not uplift the economy of them
even to 1% per year. The infrastructure projects
under taken by the Government and purchase
of anything for the Government purpose are
costly and inferior in quality due to kick backs.
If any Indian or foreign entrepreneur desires
to establish a manufacturing facility or
construction of infrastructure facilities or to
provide high end services or supply of high tech
machinery or arms or to enter into joint
ventures or to invest in stocks and financial
instruments there exists kick backs. Indian
government in the last decade took it to a new
level. In the last 5 years, we have been hit by a
series of multi billion rupees worth of scams
and scandals in which even ministers and
bureaucrats of the government of India are
involved. There have been atleast 10 major
scams and all starting at the highest levels such
 Page 87
as 2G Spectrum scam, Coal scam etc. Recently
a few scams got uncovered, the licenses and
clearances awarded in the process were
cancelled bringing projects to abrupt halts and
some of the developers were put in deep
trouble. We all know that availability of power
plays an extremely important part in the
development of infrastructure projects hence,
there exists scams. Government is unable to
allocate natural resources for production
purposes to various industries or agencies
judiciously. Issue of mining rights or wireless
spectrum or distribution of electricity are not
done in a transparent way and forced the
courts to intervene and demand change
leading to a new problem. As the bureaucracy
got hauled before the courts, in the fear of
getting penalized in case of negligence or even
any kind of unintentional wrongdoing on its
part, it made mandatory to the businesses to
navigate through India’s plethora of rules,
permissions and clearances for the projects. So
the already existing problem of bureaucratic
constraints got even more compounded due
to sudden limelight on institutional corruption.
Another significant part of corruption
is crystal clear in Government tendering
process and award of contracts. Whenever
tenders are called for any major projects such
 Page 88

as dams, canals, cabling, tractions, power grids,

transmission lines, bridges, roads, ports, public
sector industries etc, the construction mafias
comprising competitors, public works officials,
material suppliers, politicians, construction
contractors and the concerned official
departments surf out to bring the project costs
escalated and if the low bid is successful there
comes poor quality of material used, low
quality of construction, deviations from the
approved plans, prolongation of project
implementation to demand escalation clause
etc. The inspectors, regulators, finance
departments are also benefitted from the
successful bidders. The poor development of
infrastructure, delay of the project
implementations, quality of infrastructure are
entirely due to flaw in the tender process.
In the corruption scenario even the
Income Tax department, Enforcement
departments, Anti- corruption bureau,
Commercial Tax departments, Excise
departments, Judiciary and what not every
Government departments are not spared from
the epidemic. In the IT department as long as
tax evaders and tax avoiders are existing in the
country the corruption prevails and grows at
exponential direction. No assessment of
accounts of individuals or HUF or small and big
 Page 89

business houses or even corporate companies

take place as per rules. Even a few cases are
subjected to pay heavy taxes and penalties
people approach appellate authorities for
review and get exemption or discounts. Regular
IT raids of establishments result in regular
bribes or harassment of ignorant traders.
Enforcement Directorates come into picture
only when the media bring the cases to lime
light or opposition parties table in the Assembly
or Parliament. Next the cases may be
transferred to CBI or CBDT or ACB or other
regulators which take decades to punish the
culprits or recover the losses of ex-chequer.
Similar phenomenon is going on with other
departments.
Leave alone the regulator departments
even the service establishments such as Health,
Science & Technology, Defense, Irrigation, Fire,
PWD, Municipal corporations, Electricity, Water,
Sanitation, Education etc. are pilfered by the
corruption practicesIn hospitals run by
Government, staff and even doctors are
involved in corruption in placing the orders for
medicines, clinical services, maintenance, TA &
DA claims, private practices, pilfer of medicines
etc. In recent years Government introduced a
social welfare scheme in providing medical care
to the poor patients even in corporate hospitals.
 Page 90

Corporate hospitals in connivance with the

department of health exploit to a maximum
extent in claiming reimbursements even for the
fake operations. In many of the other
departments issuing the contracts,
maintenance of the establishments, TA, DA
claims, medical reimbursements, material
procurements, construction of new buildings,
expansion of labs or workshops etc, and in
some cases recruitments, promotions are the
sources of illegal income.
The role of public in corruption is also
worthmentioning. Two hands are needed for
clapping. Bribe taking and bribe giving are both
crimes. A big unsolved question in general is
whether seed is first or plant is first evolved as
seed can not generate with out plant and plant
can not come with out seed. Similarly bribing
in India is unsolved story. People want things
to be done by hook or crook. A common man
needs several things from the Government. As
per rules things do not move because there
may be some deficiencies with the people
hence, take the bribing route. If the public
wants to buy their needs in the market heavy
amounts of taxes are to be paid which the
common man can not afford. Small business
people can not earn much more than what
they expect and so they indulge in buying and
 Page 91

selling goods without taxes. If traders want

licenses or renewals it is not possible without
bribing. Building plans do not get approved in
one go and applicants shall make several rounds
even after bribing. Suppliers of materials or
consumables for the Government departments
indulge in bribes for getting orders and for
getting their bills passed. Where ever the bribe
is too high the suppliers indulge in short supplies
or poor quality goods supply. This shows that
bribing is compulsory for the survival of traders
or suppliers to fetch more income or for
common man to get their things done. The
outcry of Government staff is that their salaries
are megre to meet the increasing cost of living,
education to their wards, comfortable living,
minimum luxury etc. Public has no voice for the
right because they are vulnerable to the
harassment from the authorities. It is a vicious
circle comprising entire streams of people.
There are ample rules and laws to
curtail the corruption such as Right to
Information Act, Central Vigilance Commission,
Right to public services legislation, Anti-
corruption laws like Indian Penal code 1860,
Prosecution section of Income Tax act,1961, The
Byname transaction(prohibition) Act, The
Prevention Corruption Act, Prevention of
Money laundering Act, The lokpal and
 Page 92

Lokayucta Act, Whistle Blowers Protection Act,

Anti corruption courts etc. But still India is not
in a position to overcome the illegal practices
and eradicate the corruption.
Major factors contributing to
corruption in India had been outlined in the
reports of world’s largest audit and compliance
firm, KPMG which reveals that several causes
encourage corruption in India. High marginal
tax rates and numerous regulatory authorities
with power to hinder any citizen or business to
carry on their daily affairs are some of the
factors. The power of authorities to raid and
question individuals or business community
encourages the illegal practices of corrupt
officials to collect bribes. Individuals or business
people decide whether the paying bribe is
convenient and cost effective or incurring loss
due to delay in following step by step, table to
table to get things done. By applying
systematically and legally to get things done
as per rules is worth but the fate of applicant is
not sure. Due to high tax impact people decide
paying bribe is cheaper than paying taxes as per
rules. The high capital gain taxes in India
resulting high corruption in real estate sector
and more and more black money is being
generated and circulated among public. The
economy of the nation is crippled due to failure
 Page 93

to collect taxes for its budget due to collection

of bribes by the officials. Excessive regulations,
authorization requirements, complicated
taxation systems, too much licensing systems,
numerous regulators, mandated spending
programmes, lack of competitive free markets,
monopoly of certain goods and service
providers especially Government controlled
institutions, bureaucracy, lack of penalties or
punishments on corrupted officials, delayed
judiciary, lack of transparency in rules and
regulations etc, are the major causes for
corruption to prevail. How to combat
corruption in India.
A dedicated Government with strong
will to reduce the level of corruption and the
following steps may give rise the hopes of the
public.
According to an article in the Harvard
International Review on corruption in India ,
the Central Vigilance Commission will have to
check for political links within bureaucratic
corruption, which should be of great help not
only for Indian politics but also to put a stop at
the practice of discriminative corruption that
favours one social or ethnic group over the
other.
Government must bring reforms in all
anti corruption laws to plug the loopholes.
 Page 94

A reasonable and transparent tax

structure, backed by clean and clear
enforcement is one of the best options to
control corruption. Taxes must be brought to
minimum levels so that no common man or a
pretty trader or a service provider or a
corporate company do not think of employing
unethical practices. It is sure that Government
will not incur any revenue loss and more over
bribery may be reduced to a greater extent.
The procedure of tax payments must
be simple and mostly direct through Banks so
that Government need not spend on staff for
collections, raids, inspections and harassments.
At present some of the manufactured goods
are levied taxes and duties at the factory end
and public buy the goods inclusive of taxes
without any hesitation and bribing does not
come into picture . But the vigilance staff at
the factories must be loyal. When the taxes are
in minimal level the manufacturers do not
indulge in malpractices and in creation of black
money to bribe officials.
There is an ardent need to train and
counsel the officials for adopting fair practices.
Education is an important tool to
control corruption to a greater extent. The
corruption in Kerala is lowest which is being
 Page 95
attributed to education. Kerala is noted for
highest literacy rate. If the public is educated
they will be aware of Governmental procedures
and systems so that the concerned authorities
can not exploit them. But it is not a permanent
solution as long as educated or rich or medium
people indulge in bribing for their selfish motto
of getting wrong things to their advantage or
profit. At least we can expect a change in
younger generation who are getting educated
now.
The constitution must be reformed to
deal with the criminal politicians. The present
rule of persons who have criminal background
must not be allowed to contest in elections. But
in India nearly 60% of the contestants are either
criminals or supporters of the criminal
politicians. How can anybody expect the control
of corruption as long as criminal politicians rule
the country, make the laws and command the
public.
When Electronic governance is spread
all over India as early as possible corruption may
be controlled to a maximum extent. Why do
people involve in paying bribes if they can get
their certificates, legal documents, legal
opinions, approvals, licenses through internet.
By means of net booking of Railway, Bus, Air,
cruise, cinema, dharshan of important shrines
 Page 96
tickets, several types of corruption practices
including black marketing, commission
agencies, influences, miss use of power by
officials and politicians could be reduced.
Another significant tool is Right to
information act. With this facility anybody can
apply for information and find out the position
of their queries and position of their
applications. As most of the Governmental
procedures are time bound and if the
applicants fail to get their requests done this
RTA comes handy. This information act helps
the public to bring the culprits to the book. If
our appeal is not considered the concerned
department must give reasons for not
approving or give approval in time. Only
drawback is the public is afraid of using this act
because most of them are not following rules
and regulations for getting their wrong things
done. First of all public shall be aware of
scrapping their greediness, profit orientation,
mind of misusing rights.
Prevention of Corruption Act 1988
came into force on 9th September, 1988. But
corruption is still flourishing. Why? Because of
weak actions and proceedings towards corrupt
people. People don’t have any fear of this act
and the court. The act may thus be revised for
its better implementation.
 Page 97
People must learn how to be honest,
faithful, truthful in their profession who ever
may be rich or medium or poor or bureaucrat
or politician or officer or clerk, teacher, army
man or engineer or police personnel or
manager. Then corruption can automatically
decrease.
The salary structures of lower staff and
even mid level officers and sub staff are pretty
less to lead the luxury life which they dream as
soon as they enter the Government jobs.
Though the staff members are little hesitant
and honest their family members out of
competition bring pressure to accept bribes.
The staff tries to delay the clearing of the files
so long that the clients get fed up and offer bribe
to gets things done quickly. So, enhancing the
salaries judiciously may reduce the corruption.
But to any bodies surprise even the high salaried
officers, bureaucrats and honorary executives
such as Chairmen indulge in corrupt practices.
In many offices in the Government
sectors the work load is drastically going up due
to growth of population, trade, making wealth,
securing properties or assets etc,. And the
recruitment of vacancies has declined and
hence, chances of delay of works are more. Thus
concerned officers have no option to delay the
works and the anxiety and concerns of clients
 Page 98

lead to the corruption. Government may look

in to this angle and bring reforms to curtail
corruption to some extent possible.
Law dealing with corruption cases is
very weak and not tenable. For example Anti
Corruption Bureau rides an office and catch
the guilty employee at the office, at home and
premises of relatives and friends and identify
the disproportionate assets, the officer is only
suspended for the judicial trials. But after a
couple of years you find him reinstated in the
same department or elsewhere in better
position. Thus the corrupted people are not
having any hesitation or fear to indulge in
corrupted practices.
Installing CC Cameras in all the offices
may help to control bribing directly from the
public. But the fear of creating innovative
methods by the seasoned corrupted people
and staff, is always possible.
The Government must insist on the
accountability of works to be started in the
stipulated time and end as per the rules and
finished in the prescribed time frame. This will
help public not to resort to bribing.
Corruption in the media is to be
curtailed first by taking severe actions,
cancellation of licenses, prosecution of culprits,
 Page 99
seizing of the offices etc. There are many scams
and corruption events that have come to light
very late or never come up under the influence
of politicians also. Though the media is well
aware of the scams they keep silent to
cooperate their company bosses to exploit
monetary benefits from the scamsters. Even
the reporters come across several incidents of
corruption and bribery they keep quiet for want
of illegal income. Professionals like auditors,
inspectors, assessing agencies, media reporters
and advocates must inculcate ethical values
in the interest of Nation.
In the light of lucrative opportunities
in the Government jobs there is a lot of
competition for selection. Innumerable types
of corruption are in vogue starting from
ministers to recruiting officers. This can be
partly controlled if there are transparent
processes of selection. Many of the eligible
candidates are unable to secure the
Government jobs under the guise of
malpractices in the examination system,
partiality in the interviews, misuse of
reservation policy, fake educational certificates
and cast certificates, abuse of power etc,.
There are many illegal practices are
going on in India while allotment of natural
resources to the companies, exporters,
 Page 100

processors etc,. The corruption in this sector

is possible by introducing transparent systems
such as e-governance by keeping all the details
in the on-line, inviting tenders on-line,
selection process and results on-line etc.
Inflation is another major factor that
encourages corruption at all levels. As the
spiraling prices deter the average income
people from encouraging the corrupt practices
of the business people, traders, contractors
and others. Business people raise the prices
of the goods they hold for fast gains by luring
the officers concerned and even politicians for
support. If the Government is really sincere
to control the corruption suitable measures
must be taken to control inflation.
Similarly corruption is very prevalent
during elections. A lot of money is being
circulated during elections. Accounted money
is rarely or scarcely exchanged because of lack
of resources. Generally donations from the
public and business community are maximum
in the form of unaccounted money.
Contestants spend exorbitantly for obtaining
ticket from the party, publicity, supporters,
distribution to the prospective voters in the
form of money or liquor. The contestants who
win the elections expect and demand
profitable contracts to recover their
 Page 101
investments. All these involve in corruptive
process. There is one option to curtail this but
only to a meagre extent. That is Government
may extend financial support to the contenders
officially one each of the registered parties as
loans. Though it may work out better than the
present conditions but it creates opportunity
to the officials and politicians to swindle money.
In general people find it surprised to
know some of the ridiculous, outdated and
moralistic laws existing which come to light only
when some law enforcement authorities
somewhere use them to harass and extract
money from the innocent and common public.
A tendency may be created among public to
take every law less seriously. Therefore, there
is a need to remove certain unnecessary, unfair,
untenable, meaningless and complex laws and
strengthen those which are very essential for
fair, equitable and just system. Enforcing and
administering such worthy laws will block the
corruption to some extent.
Generally ministers and bureaucrats
misuse their powers to favour some lucrative
areas such as award of Government lands,
natural resources, allotment of spectrum,
approvals of high value projects especially of
major PSUs and massive contracts. Hence, it is
worth to minimise their discretionary powers
 Page 102

to maximum possible extent to curtail

corruption. Such information, approvals and
relevant documents must be accessible to the
public through Right to Information Act and On-
line.
The much sought after various
measures taken by the Government to
eradicate corruption such as introduction of
Lokayuktha under Lokpal bill, reforming the
Central Vigilance Commission, empowering
Central Bureau of Investigation, Administrative
vigilance Division, Domestic Vigilance Units
with independent powers to investigate
without influence or bios and to punish
anybody including ministers or judges or
bureaucrats etc., if implemented and practiced
with the cooperation of public and Government
officials and politicians, the corruption in India
will be insignificant.
Dealing with the black money is very
critical to eradicate corruption. Several
economists suggested a few measures to this
effect such as limiting the wealth in the form
of properties, houses, lands, gold, deposits,
shares etc, of any person, changing the model
or design of currency every 4 or 5 years,
monitoring registrations of the properties or
agreements, seizing black money and
converting into treasury currency, quick and
 Page 103

strict punishments to the culprits of any cadre.

But years and decades are passing away without
implementation.
An inexplicable doubt arises to any
common man whether all the above are
implemented and forced to practice will result
in corruption free Nation. Is it possible to
implement in total in a short span of time and
is it possible to the elected leaders who are
ruling the centre and states to push all these
measures. Can any civilian believe that such
broad mind, devoted , having greater will power
and responsible leaders are existing or going to
come up. There are no chances of India getting
such strong, dynamic and selfless leaders. Even
if a few leaders come up, the ruling or
opposition parties comprising of MPs and MLAs
will not allow such leaders to implement the
measures to curtail the corruption. Even if the
ruling party tries to implement in order to keep
up the election promises which generally every
party does with respect to corruption. Newly
formed Governments always take up some
active measures for controlling the corruption
that is only during first year. Later no
Government could continue or bother to
continue due to pressures from its own party,
opposition parties, PSUs such as Defense, Coal
India, Science & Technology, power sector,
 Page 104

monetary regulators, spectrum regulators,

private corporate companies, financial
institutions, traders, exporters or importers.
Hence, even after 68 years of independence
the corruption is still prevailing in India and the
extent of it is growing exponentially year by
year not only in terms of value and number of
people involvement but also in modes of
corruption.
The regrettable factor in this scenario
of corruption is that the public ie, the common
people have a greater stake in escalating the
growth of corruption. Though they are most
sufferers, losers, vulnerable, implicated and
ignorant they are not able to fight for
eradicating the corruption. If the public is
sincere, dare, responsible, knowledgeable and
aware of its impact on the society, National
economy, moral values of country, dignity of
the Nation and their own well being, they can
definitely bring the corruption under control.
Let the people stop bribing for anything to
anybody in spite of losses for the time being. If
the works are not done by the concerned
authorities let the people approach Lokayukth,
RTA, Chambers of commerce, civil societies,
NGOs, Anti Corruption bureau, Central
Vigilance commission and seek their help to get
right things done. People should be strong to
 Page 105
face the vindictive actions of the corrupt
authorities such as harassments, raids,
inspections, calling for the records etc. One can
face them if they are doing right things such as
paying taxes as per rules, moving goods legally,
not indulging malpractices in the trade,
submitting proper plans for approval, and not
involving in illegal practices etc,. People are
not fully utilizing the services of associations
like Chambers of commerce & industry,
individual associations for every manufacturing
products, Trade unions/associations etc. In fact
there are several societies registered or
unregistered formed basing on locality wise ,
organisation wise, profession wise, age group
wise, religion wise, affiliated to parties, women
groups wise. Each society has executives,
members and supporters, a common agenda,
laws, meetings, deliberations etc,. So, people
who want anything from Government and if the
staff demands bribes they can seek the
assistance of their society which in turn can
bring pressure on the officials concerned to
complete the work. Fighting for the right by a
cooperative society is more powerful than
individual.
We can view this subject in other angle.
Suppose most of the measures mentioned in
the previous pages are implemented, the
 Page 106

officials might be contented with the salaries,

amenities, minimised work due to increase in
work force, no pressures for bribes from higher
ups and direct impact of anti graft rules being
stringent and dangerous and fear complexes
surmount, they themselves do not involve in
corruption. But in the case of public the poverty
and illiteracy especially in the rural areas may
come in their way to refine and awareness of
the situation may be vulnerable to corruption.
The most important point at this stage is
whether politicians ever change their minds
from corruptive practices. They mostly commit
all sorts of ills only for vote bank and party
prestige. In the elections during the recent
decade voters taught some lessons to the
politicians by shifting their verdict against the
predictions and expectations. Voters are
intelligent in voting as per their will even by
accepting money or articles or threatening from
all parties. Voters addicted to liquor are not
dependable at all. Hence, one can hope slowly
politicians may also stop investing on voters,
party heads, publicity and will not tempt to earn
from back doors. If all this happen the
corruption in India start disappearing in due
course of time.
 Page 107

ROLE OF POLITICS IN THE DEVELOPMENT OF INDIA

Mahatma Gandhi stated that politics
without ethics and principles were not
desirable. The principles must be the moral
principles. According to his philosophy , politics
should be governed by truth, morality and self-
purification. Gandhiji’s politics were based on
truth and non-violence. He also prescribed that
country should concern with the morals of her
leaders. He had no intention to indulge the
religious matter in politics. He interpreted that
religious matter is a death-trap because it kills
the soul. He wanted the political parties based
on religion or other must include universal
religion of toleration. The main roles of
politicians in any democratic country are to deal
with national issues in the interest of
development of nation, check corruption,
nepotism, crisis in governance, ethnic
problems, unlawful activities etc, by exercising
wisdom, ethical culture, confidence building
efforts, trustworthiness and performing good
works. People used to enter the politics in those
days out of patriotism, inspiration from the
great leaders like Gandhi, Vallabhai Patel,
Nethaji Subhaschandra Bose, Acharya
Vinobabhave, Ambedhkar, Jawaharlal Nehru
and many more, like nationalism, love for
society etc,.
 Page 108
But the scenario of politics in India is
entirely against the dreams of Mahathma
Gandhi. A critical review has been given under
the corruption chapter as the entire politics
move around corruption. The entire principles
and ethics are buried under the political
kingdom. People enter politics with religious
attachment, love for power, greed for money,
target to overpower their rivals, cover up their
crimes, ambition to become Prime Minister or
Chief Minister and other intensions. Even if
one or two devoted politicians want to enter
into polls and contest in elections, the other
party leaders will try to suppress them in all
directions.
The political atmosphere had changed
to a greater dimension since 1990s on
realisation of need of the economic growth and
development of the country. Economic reforms
introduced in 1990s lead towards development
of industries and cut back of control over the
formal economy. Prior to this congress party, a
political conglomerate of self made agenda, self
oriented practices and family rulers, had failed
to improve the informal economy and
sustained high rate of poverty and illiteracy of
the population prevailed. This party attained
small gains by exploiting the economic
conditions of the poor masses who enjoyed
 Page 109

little or nil rural infrastructure. The great

congress leaders immediately after
independence used populist slogan such as
Gareebi hatao to lure the poor for small baits.
This only resulted in sustaining their positions
in the party and in the Government. There was
and is no substantiate change in socio-
economic development of the population
especially poor community. But from 1990s
only the reforms were development oriented
to a little extent.
The impact of political competition
from that period changed the scenario of Indian
Politics. Political competition always is
preferred by the general public. During
elections the rural and illiterate voters are
benefitted directly through sops from the
Government. This also improved the per capita
income of the people and contributed a little
bit to the economy of the state. The subject
politicians will be accountable for their actions
and work towards the improving the
relationship between voters and political
representatives. They implement growth
promoting policies. This competitiveness also
improves the Human Development Index. If the
politicians do not sense the competition and if
lost the hope of winning in the subsequent
 Page 110

elections make them to indulge in all sorts of

corruptive practices. Only one party, National
Congress Party ruled the country from 1952 till
1977 and then with only two terms single party
rule ie, till 1988. From 1989 onwards the centre
was ruled by either Congress or BJP coalition
parties till now. If the National economy,
Human Development, rural economy, trade and
industrial development are observed how ill
developed our India was till 1977. The present
day’s progress of Indian economic development
had taken its roots from 1989 only and the
whole credit can be purely attributed to the
political competitiveness.
While India is in a far better place today
- with better-than-the-rest in growth rate and
benefits of globalization . The daunting concern
is that the policies might just undo the gains of
liberalization, as socialist policies and greater
government controls once again take centre-
stage. And a fractured leadership at the centre
only aggravates the situation.
The Economy of India is directly
dependent on political governance. Our Indian
politicians are strong both at National level and
at regional level especially from 1990s. Some
politicians with communal tag demand for
more socio-economic rights for their
 Page 111
community and some communities ask for
autonomous status while some ask for
independent state itself. Surprisingly even after
facing so many political problems India still
survives as democratic state.
The influence of political policies from
time to time is very clear when we observe the
economic policies included import substitution,
protectionism, industrialization, business
regulation, intervention of the states in labour
and financial markets from the time of
independence. In the mid-1950s, industries
such as telecommunications, machine tools,
steel, insurance, electrical plants were
nationalized. Between 1947 and 1990, licenses
and regulations were required for setting up
businesses. This was referred to as the License
Raj under the culture of red tapism.
From 1950s to 1980s the economy of
India stagnated around 3.5% and there was low
annual growth rate. Industries like
communications, steel and power were given
only four or five new licenses with an aim to
enhance the business . Larger the public sector
more the losses to the state-owned
enterprises. Because of public sector monopoly
there was poor infrastructure investment. With
the License Raj system, there was wide spread
corruption. As a mark of political will the Prime
 Page 112
Minister Rajiv Gandhi initiated lighter reforms
by reducing the teeth of License Raj, promoting
the growth of software and
telecommunications industries. Later Prime
minister Narasimha Rao lead government
started the liberalization process by abolishing
the License Raj system there by ending various
monopolies, reforming capital markets, inviting
foreign investment, reforming the trade regime
and capital markets. Its goal was to reduce the
fiscal deficit, privatize the public sector, and
increase infrastructure investment. To open up
foreign trade, there were trade reforms and
foreign direct investment regulation.
Generally any country’s economy is by
and large depend on foreign trade ie, imports
and exports. A country having more technology
based resources over power the countries
which are under developed and under
developing countries. The countries which can
not convert their resources into commercial
products forego the advantage of stabilizing
economy. However, the whole international
trade is depending on the policies of individual
Governments which are in turn influenced by
the policies of ruling political parties. The
bilateral trade agreements, import restrictions,
export obligations, levying duties and taxes,
breach of contracts and one sided decisions of
 Page 113
a few Governments are influenced by the
political risks. In India the political parties
whether ruling party or opposition parties
control and influence in making policies
pertaining to the development of economy but
unfortunately the stubbornness of the ruling
parties, corruptive practices, non-cooperation
of opposition parties for their selfish motto, lack
of transparency, delayed and biased regulatory
actions, over loaded judiciary system etc, are
major factors for the poor performance in the
direction of economic development. Political
environment is another factor affecting the
foreign market. It is necessary for an
international marketer to assess the political
environment. The study and assessment of the
political environment include the following.
Political System: The type of government
i.e. whether it is Socialistic, Capitalistic,
Democratic etc. must be analyzed, since the
philosophy of the government is reflected in
its policies.
Philosophy of the Government: It is
essential to study government’s philosophy in
particular about, policy towards private sector
and foreign business. Many types of rules exist
basing on the philosophy of the respective
country which may wary in other countries. For
example in India Foreign Exchange Regulation
 Page 114
Act 1973 specifies guidelines for foreign private
investment as well as the long run political
prospective.
Permanency and Stability of the Policy
of the Government depends on the factors such
as Change in Governments, Growing
aspirations of nationalism, shifting of political
parties reaching the government at different
levels. Another alarming factor is frequent
change of Governments due to regular elections
and/or sudden fall of existing Government.
Bilateral agreements or contracts between the
Government and the incumbent company or
other country may be totally get side lined or
cancelled or enter into litigations when the fresh
Government is formed, if not the same political
party. The incumbents do assess the existing
conditions by analysing the Government’s
instability basing on the public unrest in the
forms of demonstrations, riots or arson, crisis
due to opposition political parties trying to
topple the Government, stalling the
parliamentary business, sabotaging the ruling
party by luring a few elected members to change
the party to destabilize, aggressions of some
groups of people like Maoists, terrorist attacks,
politically motivated murders, internal
squabbling for leadership positions, unexpected
change of leaders of the Government etc,. That
 Page 115

is the political instability with policy uncertainty.

The new Government may have a different
economic agenda or approach. The investors
in running projects may be entangled in a hub
of problems and there are chances they lose a
lot. The manufacturing sectors also get affected
due to change in monetary policies of the new
Government. The investors either from within
the country or from foreign countries hesitate
to invest on observing the new Government’s
policies and reactions of existing economic
promoters. Thus major contributors for the
national economy are hit and shake the
economy of the country.
The new Governments, formed after
winning the elections promise the people,
industrialists, exporters, importers, traders,
foreign investors, developed and under
developed countries and many other categories
of public to build an economically strong
country in all respects and make every stake
holder to be benefitted unlimitedly. They create
several platforms to invite investors, promise to
give all sorts of sops, land, power etc, and enter
in to MOUs worth millions of millions of rupees,
arrange periodical reviews, endorse the facilities
and make several foreign trips with potential
entrepreneurs, senior officials, ministers etc,. As
 Page 116
usual the outcome will be same as previous
periods and Governments.
INDIAN JUDICIARY
There are various levels of judiciary in
India –Supreme Court, High courts, District
courts and Munsif courts at Capital of India,
State capitals, at District Head Quarters and
taluks respectively, each with varying powers
depending on the tier and jurisdiction
bestowed upon them. Supreme court is the top
judiciary and protector of Indian Constitution.
Courts hear criminal and civil cases, including
disputes between individuals, oraganisations
and the government. The judiciary is
independent of the executive and legislative
branches of government and acts like a
guardian in protecting the fundamental rights
of the people, as enshrined in the Constitution.
And crucially independence of the judiciary has
been held to be a basic feature of the
Constitution.
The judiciary infrastructure is very poor
and insufficient. For example as per the
statistics taken in 2015 there were close to 400
vacant posts of judges in 24 High courts. The
number is much more in case of small courts.
Nearly 65000 cases are in pending with
Supreme court and nearly 30 million cases are
in the process in various courts in India. The
 Page 117

ratio of population Vs Judges is one million to

10.5 as against the best ratio of 1 million to 50.
Even budget allocation for judiciary is a meagre
0.2 percent of GDP. How can anyone expect
better performance.
According to the World Bank, Indian
courts are notoriously inefficient but they at
least comprise a functioning independent
judiciary which is the guarantor of fairness and
a powerful weapon against corruption. But
people’s experiences fall far short of this ideal.
Corruption in the judiciary goes beyond the
bribing of judges. Court personnel are paid off
to slow down or speed up a trial, or to make a
complainant go away.
In the recent decades the complexity
of cases had not only unpredicted but also
unsolved. The gamut of civil and criminal cases
had been broadened to the extent that can not
be over reached. The family disputes, traffic
violations, insurance claims, land mafia, marital
divorces, sexual harassments, money
laundering etc, have taken centre stage in the
judicial arena. Surprisingly the Government is
the largest single party litigating before the
courts. The cases being added supersede the
cases cleared. Most of the cases of Government
are losing the battle which indicates one sided
 Page 118

based policies, rules, interpretations etc,. The

corruptive practices and greed on the part of
the advocates are the major reasons for the
backlogs. The innumerable number of pending
cases in the Supreme court and other lower
courts has defeated the very purpose of the
judiciary system that is Justice delayed is the
justice denied. The very comments of Supreme
court on 12th January, 2012 that people’s faith
in judiciary was decreasing at an alarming rate,
posing a grave threat to the democracy and
constitutional governance of the country. The
highest court also pointed out the need of filling
the vacancies, enhancing the income and
service conditions of the judiciary cadre in tune
with the cost of living and public sector
executives, confidence building up of unwilling
advocates to become judges, eradicating the
scandals about lack of integrity and other
effective measures are essential to instill the
faith in judiciary.
In order to initiate the reforms in
judiciary for effective functioning, Government
of India started several measures such as
enforcing special courts like Fast track courts,
Family courts, Evening courts/Morning courts,
Mobile courts, Lok Adalats, special and ad hoc
benches etc, to speed up the justice and reduce
the pendency, especially in pre-litigation
 Page 119
matters, settling fresh cases before they become
full-blown disputes and enter the courts. As the
economy of the country is growing, Government
is very liberal in allocating huge budgets for
social upliftment of the poor and back ward
classes, free education, free health care, free
meals, unlimited subsidies, unexpected and
unimaginable hikes in salaries and pensions of
the Government employees, the purchasing
power of the people has gone up significantly
which attracted the people to buy assets like
lands, houses, gold, silver, shares etc,. This
change in economy of the society surfaced
several litigations and disputes and cases of
referring the courts have increased.
It is very difficult to understand by
common public about the functions and veracity
of the appellate tribunals that are existing in
almost all the departments. Why the various
tribunals fail to solve the petitions and why the
public has no faith in them. Most of the decisions
of the appellate tribunals are being referred to
the courts including Supreme court. Either the
petitioners are rich and affordable to spend on
the courts or they have backing of the officials
or the authorities of tribunals are incompetent
in convincing the public or their authenticity is
restricted as per the rules/laws/constitution to
institute the orders of punishment or
 Page 120

convictions. It is high time for the Government

to take up this point of view very sincerely and
bring reform to give powers to appellate
authorities to judge and close the cases without
referring to courts like Lok Adalaths. By this, lot
of pressure can be avoided in the courts.
However, the question of corruption get
highlighted ever here also. Of course, when it is
prevailing in the judiciary at all levels it makes
no difference if it penetrates into appellate
system.
INDIAN POLICING SERVICES
F irst Police Commission was
incorporated in India on 17th August, 1965 as a
Government department with the detailed
guidelines for the effective system of Police in
India. The main objectives of this department
is to maintain order, enforce law, to detect crime
and to prevent the crimes. There are various
police forces such as Central Armed Police
Forces, Central Reserve Police, Border Security
Force, Special Task Force, Indian Intelligence
agencies like Research and Analysis Wing,
Intelligence Bureau, Central Bureau of
Investigation, Criminal Investigation
Department, Central Industrial Security Force,
National Security Guard, Coast Guard and
others to take responsibility in the areas of
 Page 121
maintaining public peace and order, collection
of intelligence reports, VIP security, Counter the
terrorism, safe guarding borders, public
properties, railway policing, preventing
smuggling, drug trafficking, economic offences,
disaster management, protection of socio-
economic legislation, protection of
environment, protection of public life from
riots, thefts, arson, harassments, cheating etc.
Indian constitution made policing is the state
subject under the Government colonial police
law passed in 1861 which is generally followed
in many states till today. It was felt long ago to
bring reforms in police department and various
committees were formed in 1970s, in 1998,
in2000, in 2003, in 2005, in 2006 under eminent
personalities of India. But all the reports are
under incubation. Periodic intervention and
questioning of the Supreme court could only
prompted the state Governments to institute
various committees and implement the
suggestions made by them.
In general the police system is set up
in lines of British rulers. The hierarchy, working
mechanism, reporting system, inter
departmental communication, distribution of
acquired information among related centers,
joint probing etc, are in order and well
designed. The services of the policing are worth
 Page 122
appreciating in many respects. But the high
level of corruption at the top order, petty
bribery at lower level, intervention of
politicians, leaders, bureaucrats, rich people,
underground dons, smugglers etc, are totally
responsible for the deterioration of policing
system.
At present the general public has lost
confidence in police system. Majority of the
population is hesitant to approach police for
justice. Police also harass public by not
accepting the complaints, by not putting up
FIRs, by torturing the suspects in the name of
interrogation, by not producing them to the
courts etc., before the magistrate immediately
, by demanding bribes from the complainants,
by even sexually harassing, by not taking
prompt actions, by colluding with the criminals
etc. Recent media reports about human rights
abuse, rapes and murders, spiraling crime
records, violence, smuggling valuable goods,
road accidents, burglaries, lootings, economic
offences etc, made the public to develop
distrust on policing and opines that the police
system is inept, malevolent and political tool.
There must be public accountability and
transparency. To improve the functioning of
the police force and enhance public confidence,
necessary independence from the
 Page 123

unwarranted political interference on police

department is to be ensured. For that
collegiums are to be set up to appoint a few
key reputed officers. It is also necessary to
establish an independent body such as police
ombudsman to provide justice to the
complainants suffered with the obstruction of
justice and abuse of authority by the police.
For all the drawbacks the main factors
are attributed to the insufficiency of police
force in India and to corruptive practice and
public’s disrespect to law. The senses of 2011
showed that there were 130 police personnel
for every one lakh citizens as against 220
personnel according to UNO’s guidelines.
Countries like US, Canada, Australia, Norway
and Sweden the ratio is 220 to 280 personnel
to one lakh population. The worst thing is in
states like Utter Pradesh and Bihar the ratio is
only 65 to 75 for one lakh hence, the crime rate
is high there. The pity part is that in India
15,000 VVIPs are protected b y 47000 ie,. 3.13
lakh police force for one lakh VVIPs and that
too well trained police. Some of the following
steps may improve the system.
c Provide better training to the officers of all
ranks.
c Pay them better salaries and allowances.
 Page 124

c Provide them better living standards.

c Teach them the importance of
accountability, fix them responsibilities to
improve their morale and awaken them not to
indulge in corruptive practices.
c Reduce the working hours and demand
effective policing.
c Increasing the women force from
present 10% in the police departments
especially medium and high rank officers.
Bring a law or amend the constitution
with regard to service rules and punishments
in such a way any erring staff irrespective of
cadre if found guilty on departmental enquiry
must be punished severely even up to the
termination of services, imprisonment and
penalties. There should not be any provision for
referring to civil courts. No scope is given to
amnesty agencies such as Human Rights
Commission to interfere in this regard.
Both judiciary and Policing systems
are vital for the development of any country
and hence, Indian Governance must bring
suitable reforms and strengthen them in all
respects.
 Page 125

MILITANCY / TERRORISM
Terrorism is defined as a systematic or
threatened use of violence to intimidate
population or Government for political,
religious or ideological goals. Terrorism found
in India includes ethno-national terrorism,
religious terrorism, left wing terrorism and
narco terrorism. South Asian Terror Portal listed
180 terrorist groups in India are in operation
since 20 years. Many of them have links with
Transnational networks operating in
neighbouring countries such as Bangladesh,
Nepal, Pakistan, Afghanistan. Indian
Government banned nearly 38 active groups.
According to Moody’s report India is in fourth
place in the world in number of terrorist
attacks. Terrorism in India has a significant and
long lasting negative impact on economy,
growth and development. Definitely it is
weakening the economic activity in terms of
investment growth, out go of national
expenditure, cost of borrowing, slump in
exports, cancellation of overseas contracts, set
backs in present and future foreign ventures
or investments. Indirectly tourism industry
suffers due to fall in tourists and thereby
income to the country. Increase in spending on
security at all vulnerable and sensitive
installations, public places, railways etc, also
 Page 126

affect the country’s economy. This security

expenditure is very high and significant on
borders of Pakistan and Bangladesh. Even the
Aviation sector incurs heavy budgets for security
and loss of services. Undoubtedly the impact
of terrorism on nation’s economy is enormous,
leading to unemployment, homelessness,
deflation, crime and social ills apart from
Sovereign risks, political risks, Commercial risks.
Terrorist attacks are of different modes
such as bomb blasts, shooting, damaging public
properties, arson, looting, killing people,
burning trains, busses, trucks etc, causing loss
of public or private properties, loss of lives of
top leaders, common men and innocent people
especially in remote villages, threats to the
general lives of the people. On an average nearly
800 to 850 people were killed by terrorists per
year, nearly 2000 to 3000 vehicles are burnt,
loss of properties may be in thousands of crores
of rupees.
According to International Monetary
Fund researchers the terrorist attacks inflict
direct and indirect economic costs. The direct
costs are of temporary in nature which include
the costs of health care to the injured,
compensations to the families of those killed,
restoration of public services, rebuilt of
 Page 127
damaged public and private properties,
restoration of systems and infrastructure,
provision of rehabilitation centers etc. The
indirect costs are much more significant and
large as they affect the economy in the medium
term undermining consumer and investor
confidence thereby investors are discouraged
to invest in the form of FIIs and FDIs. The long
term costs are due to reduction in production,
enhancement of security measures, higher
insurance premia and other counter terrorism
regulations and control systems.
The short term financial losses such as
losses suffered by the business community due
to the diversion of business away from the
affected areas of terrorism, loss due to nil
earning, due to disability and trauma among
survivors, loss of lively hood of street vendors
in those areas do occur to cripple the economy.
The long term impacts are political instability.
The assassination of two ex Prime Ministers of
India by terrorists destabilized Indian political
certainity and economy. Similarly terrorist
attacks at kargil, Mumbai attacks, Parliament
attacks caused India to lose millions worth of
business due to trade pacts with other
countries were frozen. Export of agriculture
produce was hampered to a greater extent and
it created shortage of food in the affected areas
 Page 128
and unemployment problem escalated which
in turn triggered riots. Huge financial losses also
add to the misery. During Mumbai attacks alone
the loss due to destruction of buildings and
infrastructure was worth Rs 500 crores, which
subsequently affected Insurance companies.

INDIAN TAX SYSTEM

The taxation system in India is
stipulated as per the constitution of India and
it authorises to levy tax by the centre and states.
The Article 265 also dictates that the taxes can
be levied or collected only under the authority
of law passed by the parliament or state
legislatures. As per the article 246 of Indian
Constitution the legislative powers including
taxation are distributed between the
parliament and state legislatures and schedule
VII enumerates the areas under the parliament
and areas under the state legislatures and areas
which both can make laws.
Major taxation under central
government covers Income tax, Duties, Excise
duties, corporation taxes, taxes on Capital
values and assets, taxes on trading of goods,
stocks, inter- state trade etc. And taxes under
state governments are on land revenue,
agriculture income, estate duty, immovable
properties, mineral rights, excise duties of
 Page 129

goods manufactured in the respective states,

sale or transportation or consumption of goods,
Value added tax, consumption of power, fuel,
passenger transport vehicle of all sorts,
professions, capitation, luxuries, stamp duty etc.
Central Board of Direct Taxes and
Central Board of Excise and Customs are the two
apex bodies of Ministry of Finance, headed by
a chairman and six members of secretary level
for each board to administer the taxes of the
country through the Department of Income Tax
and Department of Excise and Customs, under
the section 3 of the Central Board of Revenue
Act, 1963. Apart from the two that is Centre and
States even the local bodies such as
Municipalities and Panchayats levy taxes on
services and facilities they provide.
Indian taxation system has undergone
tremendous reforms during the last decade. The
rates have been rationalised, tax laws have been
simplified for better compliance, ease of tax
payment and better enforcement. Government
reviews and revises the tax laws from time to
time basing on the economy of the people and
the country as a whole. The prime direct tax is
from Income tax and its structure is defined and
redefined by assessing the national GDP levels.
The individuals, Hindu undivided family,
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Association of persons, body of individuals,

company, firm and corporate are subjected to
income tax annually basing on their net income
after allowing certain deductions for general
expenditure, deposits, loans, Insurance policies
and others. The next major source of revenue
to the Government is indirect taxes which are
sourced through Central Sales tax, General Sales
Tax, Value Added Tax, Excise duty, customs duty,
service tax.
The reforms in tax system are only to
cope with the international competition for the
products manufactured in India, to enhance the
revenues to meet impending fiscal crises, may
be ad hoc to cover the exigencies of revenue
and to match the development strategies and
philosophy of the times. The transition from a
public sector based heavy industry dominated,
import substitute industrialisation strategy to
market based resource allocation has
necessitated systemic changes in tax system. In
the export led open economy the tax system
raises the required revenue generation for the
social and physical infrastructure.
There is significant uptrend in
contribution of tax revenue to the GDP after
reforms from 1990s. Though the tax system is
working well and doing its bit to the economy
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of the country, there are a few shortcomings
also. All the shortcomings of the present tax
regime lead us to develop a new system of
taxation for the ease of doing business for the
seamless flow of credit across the whole supply
chain. The dream of present Government to
bring reforms in GST is hanging in parliament
for approval. As this proposed GST aims at
replacing multiple indirect taxes both at centre
and states levels by a single tax system, levied
on all goods and services at very moderate rate,
it is well accepted by the economists,
industrialists and funding agencies such as
World Bank, International Monetary Fund and
Reserve Bank and trading circles but political
oppression is blockading of GST bill. There is a
criticism that the proposed model of GST is
fractured due to the compromises for want of
passing it in Rajya sabha. But it is always happen
to have the compromises in the federal
democracies.
In any developed countries the modern
tax systems comprise of very broad based taxes
on income and consumption, levied at uniform
and moderate rates of tax. But in India the rates
are too high and base is narrow. In case of
consumption taxes both centre and states can
levy a tax on the comprehensive base of
consumption of all goods and services.
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Whereas the income tax can also be levied by
the centre on a comprehensive base. But it is
not being done because of special provisions
catering to multiple, social, political and
economic objectives and the vested interests of
different segments of population. This has
resulted in inefficient tax system blocking the
optimum allocation of resources for production
and consumption thereby undermining
investments and economic growth. The Tax
Administration Reform Commission of India
recently observed that Indian tax administration
is very weak. World Bank Report also ranked
India at dismal 156 out of 189 countries in terms
of ease of paying taxes. To overtake this
situation the present Government is trying to
introduce the new GST system to exempt
certain items and lower the rate of taxes to help
those in the lower income brackets and benefit
the disproportionately those in the higher
income brackets.
An alarming situation is being
experienced by a few states by pursuing tax
policies that are detrimental to the economy.
Punjab has converted VAT on most of consumer
goods from a multi point tax to a tax at the first
point of sale. UP announced many transactions
under the VAT regime, instead being collected
by the vendor, the customer deducts from the
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price and remit to the Government. Many states
like Tamil Nadu, Karnataka, Gujarat are denying
the credit for the tax paid on investments and
other production inputs. DTC, a controversial
tax reform, proposed by the Government in
2010, is meant to broaden the base and lower
the tax rates. No consensus opinion is arrived
how to broaden the base. Most of the proposals
under DTC have been amended periodically to
such an extent that what is left is only a little
different from the original design and status.
The current practice of blind pursuit of
revenue targets has an adverse impact on tax
collectors that leads to harassment of taxpayers.
Another intrinsic factor is that maximum
number of tax disputes are in pending in India
which is leading to get a bad name in the
international markets and down turn in
investments and economic growth. The
structure and financing of a tax change are
critical to achieving economic growth. Tax rate
cuts may encourage individuals to work, save
and invest, but if the tax cuts are not financed
by immediate spending cuts they will likely also
result in an increased federal budget deficit,
which in the long-term will reduce national
saving and raise interest rates. The net impact
on growth is either small or negative. Base-
broadening measures can super impose the
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effect of tax rate cuts on budget deficits, but at
the same time they also reduce the impact on
labour supply, saving and investment and thus
reduce the direct impact on growth. However,
they also reallocate resources across sectors
towards their highest-value economic use,
resulting in increased efficiency and potentially
raising the overall size of the economy. The
results suggest that not all tax changes will have
the same impact on growth. Reforms that
improve incentives, reduce existing subsidies,
avoid windfall gains, and avoid deficit financing
will have more effects on the long term size of
the economy.
The economic liberalisation initiated in
1990s in India with a goal of making the
economy more market oriented and to broaden
the role of private and foreign investments.
More importantly liberalisation by reduction in
import tariffs, reduction of taxes, deregulation
of markets and attracting more foreign
investments will improve national economy.No
doubt the Indian Tax system is very much
appreciable due to series of reforms taken up
from 1990. The tax rates are definitely lower
compared to several other countries. As
majority of the population is middle and poor
in economic level, the collection of taxes could
not match the budgetary requirement. To make
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the economy in fast track, Government is
resorting to mobilise finances from the public,
foreign investments and International Financial
Agencies like World Bank. The following are
some of the challenges to implement all the tax
reforms, to collect taxes to the maximum extent
to ease the deficient budgetary resources.
A few facts are listed below which are
responsible for the poor performance of India
in terms of financial resource development.
• There are several loop holes in the Tax laws
giving scope for different interpretations. Many
people take them as an advantage and evade
taxes.
• The tax rates are too high on items like
commodities and consumables which include
food items, electronics, electrical etc, leading
to tax evasion, hording, illegal transportation,
corruption and black money circulation.
• The man power in Tax departments is highly
insufficient to control malpractices, tax evaders,
defaulters, erring employees etc.
•At present the independent body, Institute of
Chartered Accountants of India is the sole
authority to develop Chartered Accountants
and design the best standards and practices in
India . Though it is a regulatory body but
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practically not empowered and have the

machinery to check and punish the erring
auditing firms or chartered accountants. It is not
a secret or unknown fact that the auditing
sector is hand in gloves in promoting corruption.
• The electronic accounting and billing systems
had come into practice rigorously from two
decades only. There is a significant change in
expanding the list of tax payers, auditing system
and tax collection. However, the knowledge of
technology is so high the cyber crimes also are
exponentially rising. India is not equipped fully
to have a vigilant eye on all tax payers including
Government departments, corporate sectors,
business community and/or individuals.
DEMOCRACY
Indians are fortunate enough to be in a
sovereign, socialistic, democratic and republic
country. India is governed by the elected
persons under the head of Prime Minister and
an array of ministers. India being independent,
secular with freedom to choose religion and
practice, equality to all religions, socialistic with
social and economic equality and equal
opportunities to all its citizens. But it is
unfortunate to note that several factors are
affecting our democracy such as education,
corruption, women issues, politics, leadership
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strategies, the design of political institutions,
caste issues, environment policy, long term
investments of foreigners etc,. All these factors
are damaging the very democratic fabric of
India but also impacting the development and
economy of the country.
History reveals that many socialistic
countries in the world such as Iraq, Libya, USSR,
North Korea and others totally failed in the past
in terms of economy and development. In fact
India has developed because of democracy. But
people in general and politicians in particular
have changed the entire principals of
democracy by misusing the rights that are
inherited from democracy. For example
freedom of speech affected entire political
society to throw the principals of elections to
dogs. Parties blame each other, promise
anything they feel, mislead the people with
their false promises and claims, develop rivalry,
promote crimes, create criminals to destroy the
election processes and apart this freedom is
paralysing the legislative assemblies and
parliament without functioning due to
outbreaks of criticism, moving around speakers
desks, shouting slogans, waving placards,
breaking communication systems etc .
Freedom of religion lead to communalism,
groupism, hatredness, inter-religious fights and
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communal disharmony. Even the issues like

women education, women liberation, women
safety, women reservations, women
participation in politics, administration and
reservation in legislative councils and in
parliament are fracturing the democracy.
Similarly caste issues such as reservations in
education, employment, legislature, financial
support, welfare measures based on the caste
are really hampering democratic processes. Yet
another activity of people using right to
equality as a weapon resort in demonstrations,
relay fast, fast unto death, self immolations,
arson, looting, damaging public properties,
burning vehicles, police stations for want of
their undue demands. All these directly and
indirectly impact on the economic growth and
development of India.
India is a proud country being largest
democratic and republic nation in the world.
Democracy is defined as a government of the
people, by the people and for the people. In
democracy the people are the ultimate source
of power and its success and failure depend on
their wisdom, consciousness and vigilance. As
it is not possible to all people to participate in
the government, they elect by using their
franchise, representatives who can form
Government and rule. The first democratic
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election was held in India in the year 1952. As

per the democratic principles the voters must
be matured in age, educated to some extent
and have consciousness to understand
democracy. But during 1952 elections the
people of India did not really have education,
awareness of good and bad, knowledge of
democracy and nearly 80% of them are poor
and ignorant. The election process was not a
democratic way but was like a festival
performance. Even today people are not able
to elect their representatives in a democratic
way as the poverty and illiteracy still exists,
political party system took deep roots with
selfish, ambitious, power greed, unethical
ideologies, corruptive practices, weapons for
violence etc, and the influence of man power
and money power playing vital role. Most of
the elected representatives are not up to the
expectations in terms of trustworthiness,
administrative capabilities, people friendliness,
accountability, dedication etc. The elected
leaders enjoy the power and carry out the
governance of the Centre and states for five
years. The common man relax after elections
and becomes inactive by not bothering for the
actions of their elected representatives. Really
the public becomes the victims of their own
representatives. Hence, the Indian democracy
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has failed so far to bring about the desired
changes and attain the goal of regeneration.
Indian constitution under democratic
process has given the people freedom to choose
the government, freedom of speech, freedom
of movement, freedom of press, freedom to
question or criticise the actions of government,
if it goes against the public interests. But the
future of Indian democracy has several
challenges and threats due to some ugly forces
supporting provincialism, regionalism, religious
favouritism, casteism, succession, family rule
etc. Now we see the political unrest in several
states like Assam, Jammu-Kashmir, Punjab,
Kerala etc. We also see the inter- state and
centre-states disputes, differences, legal battles
and others. Apart from these India is facing
crucial issues like public unrest due to religious
conflicts, unemployment, reservations,
categorisation of castes, losses in a few public
sectors owing agitations, unlawful demands,
violence etc. Unfortunately there are no checks
or regulatory authority or monitoring agencies
to arrest the autocratic power and misuse of
democracy by the elected representatives or
bureaucrats and to protect the rights of the
people. And the people would be only helpless
spectators and prisoners in their own areas and
democracy is only a myth. Democracy is leading
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to vote-bank politics and vendetta politics.
Many a times the ruling party’s decisions
towards the growth of the country get delayed
abnormally or never get implemented. It is a
well known fact that the regular once in five
years elections to the parliament, state
assemblies, local bodies cost the Government
directly and indirectly a significant amount. And
it is also a regular feature of toppling elected
Government or crossing the parties by elected
members which mandates for by reelections.
This again costs a lot. Apart from this the
contestants spend heavy amounts of black
money to buy the votes. All this is definitely
affecting the economy of the country.
In view of the above facts it is true
that the democracy is definitely hampering the
growth of India. Both people and the elected
members are responsible for the pitiable
condition of our nation. Government must give
priority for education of every citizen and
provide them employment or entrepreneurship
out of budgetary allocation. On the part of the
people they must be honest and conscious of
their rights and duties.
BLACK MONEY IN CIRCULATION
Black money refers to the currency
earned by people who are involved in business,
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industry, politics, corruption etc., on which
there is no scope to levy any sort of taxes by
the Government. Generally this money gets
circulated in the market through the people for
all sorts of luxury living. It is assumed that India
has a parallel economy of illegal finances.
Majority of black money is expected to be
deposited by the big wigs in Swiss banks and in
other countrys in the form of assets. There are
controversial reports on the quantum of
deposits as no one knows and reveals correctly.
Every time when new Governments form in
India they promise to bring the black money to
light and improve the resources. But it is only
in words and not in deeds. All Indians are
looking forward for it in this BJP Government.
In fact much share of black money in India is in
the form of real estates, gold, silver, diamonds,
cash in Bank lockers, Bank fixed deposits,
shares, mutual funds, commodities, industrial
products etc. However, the size of the black
money economy is below the average of
otherdeveloping countries ie,. India is between
23-26% of regular economic figures and the
average of developed countries is about 38.7%
as per Schneider estimates, using dynamic
multiple indicators, causes and currency
demand method. But it is very essential for
India to curb this black money for raising the
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resources to meet the budgetary targets and it
is not an emergency need for other developing
countries.
The main sources of generation of black
money 1) business community with the greed
of earning more and more, indulge in
malpractices such as avoiding taxes by not
accounting their purchases and sales, not
issuing bills, under invoicing, transporting goods
illegally, illegal hording of stocks, maintaining
two types of account books to mislead Income
tax department etc,. 2) industrialists
manipulate the production figures, incoming
and outgoing stock registers, not billing the
sales, under invoicing, showing more wastages
in the production, showing more storage losses,
unethical ways of marketing through private
agencies etc. 3) real estate business community
by paying small amounts in accounted money
and rest in black money to the sellers of lands/
sites especially to farmers and private parties
and receiving black money from buyers, by
escalating the construction costs and by
showing more loss or less profits to avoid taxes
etc. 4) Exporters by under invoicing and
collecting difference in black and invest in those
countries itself in different forms. 5) contractors
receive black money from the companies or give
kick backs in black. 6) middle and poor people
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whose entire earnings and savings are handled
without accounting as they do not come under
Income tax purview and their purchases go
without accounting. 7) politicians, Government
employees and recruiters of any company, touts
and many others receive the bribes in the form
of cash which is nothing but black money as
nobody need to account it and show as their
income.
The Government of India, Law makers,
opposition party leaders, economists, learned
people made efforts to bring back the black
money from foreign countries especially from
Swiss banks and to eradicate corruption for
curtailing black money generation. Supreme
court and Reserve Bank of India also took active
part in curbing this issue but in vein. The
Government introduced several enforcement
agencies such as Income tax department,
Directorate of Income tax Intelligence and
criminal investigation, Directorate of General of
Income tax investigation, Enforcement
Directorate, Financial Intelligence Unit, Central
Board of Excise and Customs, Directorate of
Revenue Intelligence, Central Economic
Intelligence Bureau departments to have
vigilance on offenders, black money generators
and launderers. It also introduced bills like
demonetization of currency, offering sops to the
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stake holders with only taxes and no penalties

if black money is brought out, enhancing land
and real estate asset values, escalating stamp
duties, regulating bank transactions, taxing on
the bank transactions after a limit etc, to
minimize the black money circulation and to
raise income. Government is also taking severe
steps by conducting raids, inspections and
searches of links etc, through the above listed
departments to the best of their efforts. All
these are not resulting in complete control over
black money generation and circulation
because of several factors like insufficient
trained staff, lack of integration among
departments, political interference, audacity of
bureaucrats and corruption from top to bottom.
Congress Government could do nothing in this
regard in three decades and indirectly
encouraged the deposits in Swiss banks. BJP
Government promised and assured to bring
back the black money from Swiss banks but the
result is dismal collection of 2500 crores of
rupees in spite of their efforts. The figures of
Indian black money with Swiss banks are vague
as per various reports assuming to be 16.4
trillion dollars or 500 Billion dollars / 2 billion
dollars or 500 million rupees etc, etc,. A Global
Financial Integrity research report measured
black money between 2003 and 2012 across
 Page 146
the world was around Rs 6 lack crore and little
more in 2014. As long as the generation of black
money is curtailed, black money is brought out
and account for, taxes are levied and collected
on it sincerely, heavy penalties and
punishments are imposed on offenders etc, are
implemented there is no chance to improve our
economy and forge ahead in developmental
activities.
INTER GOVERNMENTAL DISPUTES
The Indian constitution made it
mandatory for the Government bodies such as
Centre, State, Local administrations to have
cooperative governance to implement all the
policies and legislation and avoiding legal
proceedings against each other and cooperate
with each other in mutual trust and good faith
to resolve their differences, interpretations,
disputes amicably with the help of Government
sponsored commissions, comprising eminent
personalities and judges or through direct
dialogues between concerned executives or
ministers.
In any democratic countries the
inter relation between Federal Government/
Central Government and the State
Governments and among states is clearly
described as per the constitution. However,
especially in India there are several issues and
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incidents that cropped up after becoming

republic and sovereign country resulted into
severe inter governmental disputes. The issues
pertaining to water sharing, revenue sharing,
distribution of minerals, agriculture produce,
governing power sharing, budget allocation,
allotment of infrastructure projects, clearances
for setting up of factories, military sharing,
sharing natural resources and many more
became perennial problems and disputes
between Centre and states and among states.
In 1983 Sarkaria Commission, set up by Central
Government of India to examine the
relationship and balance of power between
Central Government and states with in the
framework of Constitution of India. The
commission recommended several suggestions
spreading over issues like legislative relations,
administrative relations, role of Governor,
deployment of armed forces, financial relations,
economic and social planning, industrial
policies, sharing of resources, trade and
commerce, territorial borders etc.
Unfortunately subsequent Governments did
not implement them in total. Various other
committees, commissions such as Dar
commission, JVP committee were also set up
by the Central Government since Independence
to reorganise the states and Union-state
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relations. Almost all the eminent personalities
involved in those committees worked for the
national integration. But the state governments
do not have broad out look to settle the issues
amicably due to the fact that the politicians who
are in the position look ahead of favourable
election results and to keep up their promises
to the people to provide basics at any cost.
Though there are many dispute resolving
mechanisms as per the constitution, legislature,
acts, laws etc, innumerable disputes are not
getting solutions and cases are being dumped
in the courts adding misery to the judicial
system.
One of the most prevalent and crucial
disputes between Centre and States and among
states is water sharing. As most of the rivers in
India are interstate, there are several long
standing conflicts among neighbouring states
along the rivers with regards to proportionate
usage of river water, its control mechanisms and
distribution. Both the parliament and state
legislates are empowered to legislate the crucial
issues of water sharing. The important legislates
such as The River Board Act, 1935, The Inter-
state Water Dispute Act, 1956 were
promalgamated to adjudicate the disputes,
advise opinions, negotiate and to promote as
National Water Development Agency and The
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Resource Development Council. In spite of all

these efforts, the Supreme Court has been
forced to come into picture to take up the inter-
state disputes every year. The act enabled
setting up of tribunals for every disputed rivers
such as Kaveri tribunal, Krishna tribunal etc, to
settle the disputes among states and also
investigate matters of water in public interest
such as water pollution, flood control,
sustainability of river basin productivity, climate
change and its effects etc. As per the Act the
decisions given by the tribunals will be final and
binding and no appeal can lie in the Supreme
Court. Thus the jurisdiction of the Supreme
Court and other courts is clearly barred in such
matters. On the contrary many states are
approaching supreme court for interim orders
to save the standing crops or drinking water
shortage etc. Another lacuna in this issue is the
tribunal is made only a decision making role and
the implementation of such decisions is not its
lookout. More than that the functioning of the
tribunals is not satisfactory as there is abnormal
delay at every stage thereby the disputes get
saturated beyond unsolved. Even the Supreme
Court’s decision on such disputes sometimes
lead to constitutive tensions among people of
democratic, sovereign, secular, socialistic
republic of India. For example Cauvery water
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sharing dispute between state of Karnataka and
Tamil Nadu dates back 1892 and 1924 in guise
of two agreements. Several stages of
negotiations, arguments, public unrests etc,
Staged. Even the Cauvery River Authority,
Supreme court, tribunals, political,
Governmental efforts could not yield a
sustainable understanding in sharing of water
has not been reached so far. Every season in
every year the disputes between the two states
resume and lead to public unrest and legal
proceedings. Coming to Krishna river water
sharing between Karnataka and combined
Andhra Pradesh is another perennial issue and
added to that the attempts of both
Governments to construct barrages or dams or
increase the existing dam heights are triggering
social and economic unrest. Several
departments of both the states, Ministers, High
courts, Supreme court are fully put in alert and
engaged to thwart the unforeseen
disturbances. Similarly Godavari water issue
also is in dangerous situation. The burning
issue of Godavari especially due to the proposal
of construction of Polavaram project is flaring
up due to the formation of new state,
Telengana state.
The prominent problem in water
sharing disputes and the mechanism to solve
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the issues is very ineffective because of lack of

powers to punish the contempt. The decisions
of tribunals are not being implemented by the
states and the Centre is forced to invoke Article
356 and direct the erring state to implement
but it is an extreme step leading to chaos in the
suffering states and when a popular
Government comes back it may once again
refuse to implement. Two things may give some
positive results such as commissioning a
permanent tribunal instead of appointing only
at the time of disputes with full powers to give
decission and making Supreme court only a
appellate authority to receive appeals and give
decisions as the people are still respecting
Supreme court decisions.

Apart from river water disputes several

other disputes such as Assam-Nagaland clashes,
Karnataka-Maharashtra dispute on Marathi
speaking villages, merged in Karnataka,
Gujarath-Rajasthan dispute regarding magadh
hill, Karnataka-Kerala dispute on Kasaragod’s
inclusion in Kerala, Orissa-West Bengal dispute
regarding territorial claims, Assam-Meghalaya
on Mikir hills and Jaintia hills, Arunachal-Assam
dispute over territorial issue of borders,
Karnataka-Goa over water sharing etc, are still
unsolved since 3-4 decades resulting in loss of
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life, loss of public properties, unrest,

administrative problems, instable
Governments and other inconveniences to the
people.

All these inter Governmental disputes

are also responsible for slow growth and
development of country and affect the
economy of the country to a considerable
extent.
INTERNAL SECURITY SYSTEM ADN ARMED FORCES
Armed forces are the military forces of
Republic of India, consisting of three
professional services namely Indian Army
operating on ground level to safe guard the
country at International borders and at times
of crisis with in the country, Indian Navy faces
the wars over the sea and on coasts and Indian
Air Force to combat the enemy from sky. The
Indian President is the supreme commander
of these Armed Forces and under the
management of Ministry of Defence.
Additionally Indian Armed Forces are also
supported by paramilitary organisations such
as Assam Rifles, Coast Guards and Special
Frontier Force and other inter-service
institutions. Another important Force we have
is Central Armed Police Force under the
Ministry of Home Affairs to take care of the
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internal protection of the people and

Government.
Our Armed Force is the third largest
military force in the world with over 1.3 million
active personnel and 1.15 million Reserved
personnel. There are 41 Indian Ordnance
Factories to manufacture military equipment
apart from imports, 8 Defense Public sector
Units to manufacture various military inputs.
Indian Government spends about US $ 40
billions on Defence Forces. Indian Navy has a
large operational fleet consisting of 2 Aircraft
carriers, 1 amphibious transport dock, 9
destroyers, 15 frigates, one nuclear-powered
attack submarine, 14 conventional power
submarines, 25 corvettes, 7 mine
countermeasure vessels, 32 patrol vessels, 4
fleet tankers and various auxiliary vessels as on
2014. Similarly Indian Air Force is supported by
205 Sukhoi Su aircrafts, 66 MiG 29 fighters, 49
Mirage, 2000 multirole fighters and several
indigenous combat planes as of 2015.
Indian Government’s budget
allocation for defence expenditure is pegged at
1.74% of GDP in the year 2015-2016 that comes
to Rs 2.46 lakh crores and out of it Rs 1.04 lakh
crores goes to armed forces, Navy gets Rs
15,525 crores, air force gets Rs 23,000 crores,
 Page 154
ordnance factories get Rs28,840 crores, DRDO
gets Rs 6570 crores and Rs 94588 crores for
capital expenditure for initial payments against
purchase of 126 multi-mission combat aircrafts,
197 light helicopters and 145 ultra light
Howitzers. Viewing the threats from the
neighbouring countries India decided to
increase the defense spending periodically to
cope up the shortfalls from US $ 11.8 billion in
2001 to $ 36.3 billion by 2014. India is
allocating 9 to 10% more in every budget. In
spite of our spending so much on defence our
allotment is much less than China’s $ 132 billion
in 2014. The spending on paramilitary and
central reserve forces is also increasing year by
year due to challenges in internal security. The
increase of Maoist atrocities, internal and
external militant attacks, riots, arson,
agitations, crimes, law and order issues etc, also
forced the Government to enhance the budget
allocation for police force, paramilitary and
reserve forces. Thus defence and military
expenditure is directly and indirectly
influencing the economy of the country.
NATURAL CALAMITIES
Natural calamities are the disasters
occur due to climatic changes, combustion
under the earth and under water hot pockets
and turbulences. They come in the form of
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cyclones, avalanches, hurricanes, earthquakes,

sea breaches, flash river floods, inundations,
summer storms, torrential rains, droughts,
landslides etc, which generally cause massive
loss of human lives, animals, livestock and
damage of infrastructure, residential buildings
and all types of structures and properties. Some
of the salient recent disasters are Chennai
torrential rains and floods in 2015, Kashmir and
Uttarakhand flash floods in 2014 and 2013
respectively, Indian Ocean Tsunami in 2004,
Gujarath earthquake in 2001, Orissa super
cyclone in 1999 with human loss of 10,000 lives,
Latur earthquake in 1993 with 20,000 deaths,
Great famine in the years 1876 to 1878 which
affected most of the South India and the death
toll was about 3 crores, Coringa Cyclone in 1839
with a death toll of 3.2 lakh people and many
more. Central Government established
National Disaster Management Authority to
build a safer and disaster resilient India by a
holistic, pro-active, technology driven and
sustainable development strategy to foster a
culture of prevention, preparedness and
mitigation. It undertakes the planning of several
projects to face and rescue the Nation from the
disasters. Centre allocated Rs 30 crores under
non-planning budget for this organisation.
 Page 156

Many other factors apart from what described

above are also contributing stress on Indian
economy. Such major factors are lawlessness,
lack of accountability, illegal trade, black
market, evasion of taxes, misuse of power by
politicians, ministers, MPs, MLAs, bureaucrats
and heads of local bodies, dishonesty at all
levels and even among public, political
vendettas, failure to recognise the priorities at
all levels of Government, acute deficiency of
material capital, limitation of capital
accumulation, low capacity to save capital, poor
conversion of savings into productive
investment, wasteful expenditure by
Government, Public sectors and capitalists etc.
All these cause revenue loss to the Government
directly or indirectly and force to increase the
burden of expenditure on all counts. When the
available revenue is not enough to meet the
administrative costs it is impossible to extend
support to schemes like subsidies, welfare
schemes, unwarranted natural disasters, border
provocations, elections etc. Hence, our fiscal
deficit and liability on balance of trade are
forcing Indian Government to devalue the
currency and face the inflation.
 Page 157

GREATNESS OF INIDA
The greatness of Ancient India was
described in the beginning of this book. Later
there exists a negative perception of India while
describing the circumstances and efforts taken
by the Government towards the growth and
development. Unfulfilled dream of Indians to
have sound economic growth, to eradicate
poverty, to improve literacy level, to burry
corruption, to provide maximum health care
etc, warranted to review the negative growth.
In spite of all drawbacks and lacunae no doubt,
India made several dents in keeping up its pride
at home and International scenario.
Some of the major achievements of
India in recent decades are described below.
• Just 3 years back a few mathematics and
Sanskrit scholars of Jadhavpur University,
Calcutta established the veracity of the claim
that at least 5000 basic and advanced modern
mathematical concepts have their roots in
Sanskrit and most have Vedic antecedents.
Learning of Vedic maths has become a culture
among present generation of students.
• The routed India due to internal wars, external
invasions, moghal ruling, British colonial ruling
and later British ruling, acquired independence
 Page 158

through non-violence and that too by a single

leader, Mahatma Gandhi.
• Currently the Indian economy is the world’s
seventh largest by nominal GDP in spite the
momentum picked up only in 1990s after
opening up to the globalisation and is
maintaining around 7% growth consecutively
irrespective of global slumps.
• India is the third largest in power production
in the world.
• It has become one of the nuclear weapons
state in the world.
• It has the third largest standing army among
166 countries, ranks fourth in the world in the
size of armed forces and with ninth rank in
military expenditure among nations.
• India is the pluralistic country with
multilingual, multi-ethnic,multi-cultured, multi-
religious, multi-casts yet secular and diversity
in wildlife in protected habitats.
• India spread over 3.28 million sq.kms area
with 7,500 km of coast line stands in 18th place
out of 196 countries.
• India is placed in 2nd level after China with
1.3 Billion population.
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• Print media covers through 5,600 dailies,

1,500 weeklies, 20,000 periodicals in 21
languages,
• GDP worth $576 Billion, GDP growth rate of
7-7.4% in 2015 and is projected to reach 7.8%
in 2016, compared to Global average of 2.4 &
2.2% and China’s 6.9 & 6.4% respectively.
• World class recognition in IT, Bio-Technology
and space research and development,
• Largest English speaking population in the
world and ranked 14 out of 133 countries.
• India is maintaining largest Armed Forces over
1.5 million strong.
• India has top class science and technology
institutions like IISc, IITs, Space research
institutes, Hospitals and produce largest pool
of scientists and engineers in the world.
• India is noted for its movie industry producing
over 800 movies a year.
• It has a largest forging industry at only one
location in the world namely Bharath Forge. This
caters to the world brand automotive
companies.
• Indian facility of Hero Honda is the largest
motorcycle manufacturer in India to the tune
 Page 160
of 1.7 millions which is the highest in the world.
India is the second largest tractor manufacturing
hub of India. Similarly India produces large
number of commercial vehicles and stood at
fifth place in the world market. Indian auto
maker, Tata Motors produce one lakh Indica cars
in UK’s facility.
• World famous electronic manufacture
industries harbored at India to develop and
produce large number of semiconductors,
integrated circuits and other electronic gadgets.
• The happy planet index 2012 ranked India 32
out of 178 countries with a score of 50.9 out of
100.
• India is ranked 24 out of 70 countries in
Environment Democracy as reported by
Washington based World Resources Institute.
• Carbon dioxide emission puts India in 8th rank
out of 214 countries as in 2010.
• Even in communication sector India is placed
in better position in the world with Telephone
lines in use being 9 th ranking out of 232
countries, with mobile phones at 2nd place out
of 222 countries, with internet hosts at 16th
place among 233 countries, with number of
internet users at 3rd place out of 216 countries
and television broad cast stations placed India
in 4th position out of 228 countries.
 Page 161
• The co-finder of Sun Microsystems is an
Indian, Vinod Khosla. The creator of Pentium
chip is Indian, Vinod Dahm. The founder and
creator of Hotmail is again an Indian, Sabeer
Bhatia. The Silicon valley of US is dominated by
Indian companies and Indians. There are 3.22
million immigrants in US and among them 38%
Doctors, 12% Scientists, 36% of NASA
employees, 34% of Microsoft employees, 28%
of IBM employees, 17% of Intel employees are
Indians.
• The great people quoted about India which
reflects the greatness of India. Albert Einstein
quoted “ we owe a lot to the Indians, who
taught us how to count, without which no
worthwhile scientific discovery could have been
made”, Mr. Mark Twain quoted “India is, the
human race, the birth place of human speech,
the mother of history, the grandmother of
legend, and the great grand mother of tradition.
Our most valuable and most instructive
materials in the History of man are treasured
up in India only”, French Scholar, Romain
Rolland said “If there is one place on the face
of earth where all the dreams of living men have
found a home from the very earliest days when
man began the dream of existence. It is India” ,
Hu Shih, former Ambassador of China to USA
said “India conquered and dominated China
 Page 162
culturally for 20 centuries without even having
to send a single soldier across her border”, An
American historian, Will Durant quoted “ India
was the mother land of our race, Sanskrit the
mother of Europe’s languages: she was the
mother of our philosophy; mother, through the
Buddha, of the Ideals embodied in Christianity;
mother, through the village community, of self-
government and democracy. Mother India is in
many ways the mother of us all”, F. Max Muller
said “If i wher to look overd the whole world
to find out the country most richly endowed
eith all the wealth, power and beauty that
nature can bestow- in some parts a very
paradise on earth -I should point India”.
• Indian girls are on the top of Miss Universe
and Miss World competitions in recent years.
• India a multi faith country and it has largest
Hindu, Sikh, Zoroastrian, Bahai faith and Jain
population in the world and third in Muslim
population and 9th largest Buddhist population
in the world.
• India is ranked 6th in Space competitiveness
in the world.
• India is ranked 3rd in the world as the richest
Asian country.
• It is also the richest country in the world with
7th rank in GDP.
 Page 163
*In Agriculture sector as per the data available
between 2005 to 2011 India stands first in
producing bananas with output of 30million
tonnes, beans production of 4.8 million tonnes,
buffalo milk output of 569 million tonnes and
chick pea production of 59 million tonnes,and
in number of cows, ginger production, goat milk
production, jute production, lemon & lime
production, mango, millets, milk etc. India is in
second position in producing black pepper with
19% share in worlds production, broccoli &
cauliflower production of 50 million tonnes,
cardamom production of 15,ooo MT, cashew
apple production of 6.13 lakh MT, cotton
production of 27 million bales, garlic production
of 8.4 lakh tonnes, number of goats and meat
production and lentil production and wheat,
tea, sugar cane, silk, rice, potato, peanut, onion.
India is placed third in the production of
coconut, oranges, saffron, tomato and fish
production.India is also moderately placed in
fifth position in the production of coffee,apple
and soya bean.
*It is also great to have some of our cities are
placed well in UN World’s largest morphological
cities and Delhi is ranked second, Mumbai
fourth and Kolkata at eighth place. India has
cities with high rise buildings above 35 meters
and secured good position in the world.
 Page 164
th
Mumbai is in 14 place with 1614 buildings,
Chennai in 35th place with 689 buildings, Kolkata
at 40th place with 594 buildings, Pune at 47th
with 510 buildings. Globalisation and World
cities group and network of Loughborough
University listed New Delhi, Mumbai and
Bangalore as emerging world city status.
* In Space Research sector India has crossed
several mile stones. Indian Government set up
Indian National Committee for Space Research
in the year 1962 by then Prime Minister,
Jawaharlal Nehru and scientist, Vikram
Sarabahi. It was replaced by Indian Space
Research Organisation in the year 1969 which
developed first Satellite, Aryabhata, launched
by the Soviet Union in 1975. Later India
developed another satellite, Rohini and
launched by an indigenous launch vehicle,SLV-
3 from its own rocket launching station.
Subsequently it developed Polar Satellite
Launching Vehicle for launching satellites into
polar orbits and later developed
Geosynchronous satellites for placing satellites
into geostationary orbits. These rockets have
placed several communication satellites and
earth observation satellites in space.
Remarkably India used indigenous cryogenic
engine in a GSLV-D5 for launching GSAT-14. The
greatest achievement in this field is launching
 Page 165

of lunar Orbiter, Chandrayaan-1 and Mars

Orbiter Mission. Both of them were placed in
the targeted orbits. India is first in many
successful first attempts in the world and fourth
in ranking for space programs in the world. So
far India carried out 75 spacecraft missions, 46
launch missions, 51 foreign satellites and 28
indigenous satellites were launched by foreign
launching vehicles. As of October, 2015 India
agreed to launch 23 foreign satellites of 9
countries including US and Germany etc.
India has many future plans such as
development of GSLV Mk III for launching heavy
satellites, reusable launching vehicles, human
spaceflight, further lunar exploration, a solar
spacecraft mission etc.
* Indian Railway is another feather in the cap
of India, managed by Ministry of Railways of
the central Government. Rail transport system
was first introduced in the year 1853 from
Mumbai to Thane and railways is now one of
the largest networks in the world. Its
operations cover 29 states and 7 Union
territories within India and a limited
International services to Nepal, Bangladesh and
Pakisthan. It is also world’s seventh largest
commercial or utility employer, by number of
employees, with over 1.4 million employees as
 Page 166
of 2013. It has 2.45 lakh freight wagons, 66,400
passenger coaches and 10,500 locomotives. As
per 2014-15 reports Indian Railway network
covers 1,15,000 km of track over a rout of
66,000 km with 7112 railway stations, carried
8.4 billion passengers annually and 1060 million
tons of freight annually and gaining revenues
of Rs 1635 billions per year. There are sufficient
tool factories, coach factories, locomotive
manufacturing units to produce and service
entire requirement of the Nation.
* India also developed rapid transport system.
Kolkata Metro was the first one to operate in
India in the year 1984. Later Chennai Metro,
Delhi Metro have come into operation. And now
the Hyderabad Metro and Bangalore Metro are
fast under construction and many more are in
pipe line. Even monorail system is also in
operation in India. India has modernised most
of important stations with advanced technology
operations, converted narrow and meter gauge
lines into broad gauge through out India,
improved amenities both in stations and
coaches, introduced Air Conditioned coaches,
long distant trains, super fast, fastest trains and
fully air conditioned trains, double Decker trains
for the convenience of the passengers. And in
goods transport sector Railways introduced oil
tankers and milk wagons also. The New Delhi
 Page 167
Railway Station has secured a place in the
Guinness Book of Records for having the world’s
largest Route Relay Interlocking System. This
system is put to use where multiple tracks are
interlocked. It helps divert train movements
during periods of high traffic volumes. The
renovated platform at Gorakhpur Railway
Station in Uttar Pradesh has become the world’s
longest, measuring 1,366 meters. Indian
Railways is building the railway bridge at highest
altitude in the world ie, five times the height of
Qutub Minar and 35 meters taller than Eiffel
Tower. It will come up over the Chenab river on
the under construction rail link to the Kashmir
Valley. Four sites of Indian Railways have been
declared as “World Heritage sites” by the
UNESCO. These are Darjeeling, Himalayan
Railway inscribed in 1999, Mumbai CST Building
inscribed in 2004, Neelgiri Mountain Railways
inscribed in 2005 and Kalka-Shimla Railways
inscribed in 2008. Thus the history of Indian
Railway is one of the milestones that reflect the
greatness of India.
* India is great to foot into nuclear power sector
within 15 years after attaining independence.
First nuclear reactor, Apsara research reactor
was built in India which is the first even in Asia
itself. United Kingdom assisted India with
technology and fuel. It went into criticality on
 Page 168
th
4 August, 1956. Similarly first nuclear power
plant was built up with the assistance of
Canada which was named as CIRUS . It became
critical in the year 1960 with 40 MW capacity.
Subsequently six more reactors were added
from 1963 onwards and the present installed
capacity is 5780 MW from 21 nuclear reactors
in 7 nuclear power plants. The production of
power has reached to 30.300 GWh. as of 2013.
India had an ambitious plan of reaching to
63,000 MWh power by 2032. But due to
Fukushima nuclear disaster in Japan people
started resisting the expansion plans at all the
facilities. India is facing short comings in fuel
supply to all the reactors due to minimal
Uranium reserves available and exploration of
new reserves in Andhra Pradesh to the extent
of 9.3 million tons is taking time. In the mean
time India is trying sincerely to develop thorium
based technology as thorium in the form of
monazite from sand beaches is the best
alternative. India is also negotiating with many
developed countries for fuel supply and hope
to succeed and fulfill the target of producing
nuclear power.
* The great Indian culture has been dealt in the
beginning of this book. It is worth to detail a
little bit more as it is essential to highlight the
greatness of India. India is one of the oldest
 Page 169
world’s civilisations. The Indian culture is a
conglomerate of several diversified cultures
spread across the Indian subcontinent. The
nature of cultures was shaped by the influence
of several thousands of years back history.
Basically Indian philosophy, literature, arts,
dance and music, architecture, living styles,
social ecology, human values were oriented
under the guise of religions. Thus religions like
Hinduism, Buddhism, Sikhism, Christianity,
Jainism, Islam and Parsi along with many other
tribal religions such as sarnaism,
Zoroastrianism, Judaism, Bahai faith, Atheism
had taken their roots in India. All the above
religions have their own faiths, culture in terms
of habits, living styles, arts, music & dance,
philosophy, Gods & Gurus, prayers and
practices. India and its people respected all the
faiths and lived in harmony. Even Indian
constitution was framed to make India as a
secular country. Over centuries there has been
significant integration of all the religions in
India.
The Dance and Music are the two
important and significant arts which depict
more the entire culture of India. Both music
and dance go hand in hand like two sides of a
coin. The music is an oral expression of human
feelings, natural phenomenon and reactions
 Page 170
to the actions. Dance is the physical expressions
of the same in tune with the music. Various
types of music are the treasures of India such
as folk music, pop and Indian classical music.
The history of music in India dates back some
centuries and developed over several eras. The
two main traditions of Indian classical music are
Carnatic music which is more predominant in
South India and Hindustani music which is more
popular and practiced in middle and north parts
of India. The basic concepts of this music
includes Shruthi, swara, raga and tala. The
Hindustani music tradition diverged from
carnatic music around 13-14th centuries AD.
The exponents of both music undertook
research, developed innovative types,
composed new songs, practised, performed,
parted their knowledge to their disciples and
to the public over periods. These two music
types are the foundations for the other
proliferation several other types such as folk
music, festive music, filmy music, light music,
thumri, dadra, gazal, chaiti, kajri, tappa,
qawwali, music of Bengal, Bhojpuri, chutney,
dhamar, dhrupad, etc. In recent years when
the music has gone commercialised especially
due to film industry, hybrid music culture has
been created. Some of those hybrid music are
Indo Jazz, raga rock, Indo-caribbean music,
psychedelic music, bhangra etc.
 Page 171
Dance in India comprises the varied styles of
dances were developed in different parts of the
country basing on the local traditions and
habits. Sangeet Natak Akademi is the National
academy for developing arts in India. It
recognised eight distinctive traditional dances
as Indian classical dances. The Hindu scriptures
and sculptures clearly denounced the existence
of dances from Vedic period. In fact great
Bharatha muni’s Natya Shastra writings are
from Vedas ie, words from Rigveda, gestures
from yajurveda, music from samaveda,
emotions from atharvana veda. The best deities
like Shiva, Krishna, Kali are typically represented
dancing. The most famous classical dances are
Bharathanatyam, Kuchipudi, Kathakali,
Odissee, Kathak, Dandiya, Bhangra, Bihu,
Ghumura, Sambalpuri, Garba, Chhau, Lavani,
Manipuri, Mohiniattam, Sattriya etc. Similarly
villagers and tribals of every state have their
own folk dances such as Hallisaka, Rasaka,
Charchari, Bedara, Dollukunitha, Thirayattam,
Gagari, Kalbelia, Ghoomar, Rasiya, Neyopa,
Bacha nagma, Bihu etc.
Several exponents developed various
types of contemporary dances which gained
popularity in few states like Bengal, Orissa. The
dances in films are not at all classical or western
but mob attracting media.
 Page 172

Indian Government encouraged Dance and

Music arts, established schools, colleges,
Universities, providing degrees, diplomas and
certificate courses and it is note worthy to learn
that Universities are offering Ph. D degrees for
the research and development of these arts.
India is not behind any developed countries in
adapting the latest technology and in digitalising
these arts. There are several foreign nationals
who are practicing Indian classical dances and
music. Even the Indian origin NRIs are
continuing their interest in these and
encouraging their progeny to learn and practice
Indian Dance and Music.
* Indian customs appear to be rigid but are very
essential to maintain discipline, tradition,
cultural heritage, harmony, peace and progress
of the country. To be specific India has a strong
family set-up and value system which give a
spiritual perspective to life. One may think that
people have no freedom due to family rules,
restrictions and emotional restraints etc. But
they are necessary in life for having social fabric
intact, peace and happiness.
It is endless to jot down the points that
indicate what is great of India. It is not possible
to convince all the people of India and the world
whether the facts listed above are really give
 Page 173
an impression that India is really great. But fact
is fact as citizens of India do feel proud to be
Indian for the freedom they enjoy, for being in
the family fabric, for following the customs
voluntarily or on the advice of parents, friends
and society around, for enjoying the diversity
in cultures, for visiting various historical, natural
and religious monuments, for affordable living
in general, for the fast economic growth etc.
There are several instances great leaders of the
world in many forums appreciated the glory,
democracy, secularism, historic and present day
cultural heritage, economic status and moral
values of the people under the guise of dharma,
spiritual and religious fervour. Yet India is facing
several burning social problems as challenges
to the future generation. Some of the salient
issues are described below.
PRESENT BURNING ISSUES OF INDIA
The major issues such as Social security,
political drawbacks, unemployment, corruption,
environmental and a few more are to be
addressed for the growth and development of
India. All the issues are interlinked with each
other hence, it is a big task for the Government
and the people to get the solutions for the
problems to be solved. India is still in the process
of managing the issues but not solving them
permanently. It is the people especially youth,
 Page 174

politicians and administrators jointly shall help

the Nation to project it as really great India.
SOCIAL ISSUES
Under this category issues like food
security, housing, health care, education to
poor, poverty eradication, corruption, women
safety, reservations in jobs and education,
subsidies, support to vulnerable sectors like
farming, weavers, fishermen, tribal community,
women groups, support to exports, industries,
senior citizens and many more. Only a few
serious issues are analysed here. Are the
challenges of today.
For any country with highest density of
population, limited area and resources and
nearly 80% of the population is poor and below
poverty level it is very difficult to develop in
pace with the developed countries. India, once
being richest in the world and lost everything
due to invasions and ruling of Persians, Moguls
and British rulers, has developed to the present
level after attaining independence in the year
1947. Apart from the invasions, internal
administrative setbacks also crippled the
growth process. But still the efforts taken by the
series of Governments resulted in remarkable
progress in many respects as listed in previous
chapters.
 Page 175
The budget allocation for the plan period 2015-
20 after the BJP Government came to power
with thumping majority in the elections
prominently showed a massive allotment of
funds for the benefit of poor, economically
weaker sections and middle class population.
In spite of flooding the funds from the
Central Government from the past seven
decades and every state is adding their share
for the same purpose basing on their priorities
and commitments to the people, the elevation
of poverty line is not to the expected level at
all and only some visible growth is noticed in
rural development, agriculture sector, urban
poor and in providing primary education and
health care to economically weak from the
beginning and in providing higher education,
technical and professional education since a
decade. It is the duty of every Indian citizen
especially youth to analyse the facts and take
corrective steps in directing or dictating the
Government to lead the Nation in right direction
with right spirit and bringing awareness to the
public society about its role and responsibilities
and not only their rights.
PEOPLE RESPONSIBILITY
Here Government means governing body
consisting of democratically elected leaders and
highly learned and efficient administrators. A
 Page 176
common notion is that a democratic country
is by the people, of the people and for the
people. Unfortunately India witnessed that the
country is for the governing body, of the elected
political parties and for both leaders and
administrators. The politicians always try to
come to the power and dream to be in the
power for ever. To fulfill their dream they need
money and recognition. There comes the
political corruption, political rivalry, political
hierarchy, unethical political practices,
criminalisation of politics, misuse of power and
public money, puppet role of administrators
etc. On the other hand the people in general
are not realising their responsibilities but get
lured for small gains and help the mean
politicians. Thus the whole scenario is a vicious
circle, interlinked, hand in gloves, polluted,
unsolved complex entity.
A few suggestions and remedies are
listed below for better prospects of India and
Indians. The fate of Nation is in the hands of
people. General public is the power of Nation
but it transferred the power to politicians who
in turn transferred to bureaucrats. People in
general are innocent due to lack of money or
lack of education or lack of awareness or lack
of time and due to negligence, laziness,
selfishness, attraction to the comforts, luxury,
 Page 177
wealth etc. Irrespective of status of the
people ie,, economic level that is poor, middle
class or rich or super rich, literate or illiterate,
religion, cast, young or old, employed or
unemployed, farmer or officer or worker or
industrialist or businessmen are not morally
responsible for their duties, in respecting the
law, not true to themselves, not bothering
for the society or neighbour. People in general
feel their responsibility is over when they
exercise their franchise and vote to some one
voluntarily or under influence of parties, or
against cash or kind but never bothered
whether elected representatives are keeping
up their duties and helping the public or not
and whether they are properly utilising the
funds for public use or not. Public don’t rise
their voice to correct the elected
representatives. Only opposition parties raise
their voice for their own recognition.
FORMING COMMUNITY
Farmers and farming labour who live
on agriculture, demand for the better price
for their produce, for free supply of seeds,
power, water, subsidies on fertilisers and
investments on agriculture and look forward
for Government help to get compensations
for the loss of crops due to failure of
monsoon, heavy rains, floods, cyclones, gales
 Page 178
and seek debt write off etc,. Though they are
aware of Government funds being swallowed
away by people in power and seed and
fertilizer stocks being hoarded
unscrupulously, they are helpless. Here and
there farmers undertake agitations or
dharnas to bring the facts out but most them
fissile out due to the intervention of
politicians who encourage the agitations to
keep their positions safe. There are no
agencies of Government or private or
voluntary organisations to drive the farmers
to new technologies, alternate crop pattern,
improved seeds, crop holiday, cooperative
farming and others. Many a times
Government advises the farmers but only
through media and on dais. The Agriculture
development officers from District Head
Quarters, Mandal level, Zilla parishad level,
Village Panchayat level don’t involve much
seriously and convince the farmers at the
ground level. Hence, the scenario of
agriculture is maintaining its status quo.
STUDENT COMMUNITY
A few students in every educational
institution are not fully realising the
importance of education. They must feel that
theirs is an entirely a separate community
with an outlook of dedication in studies,
 Page 179

desire to attain highest degrees to achieve

laurels in education and research, aim to reach
dream career, a motto to help the Nation by
helping their families, their native places, their
naibourhood, and state. But unfortunately
they look for total free education, maximum
comforts, easy examinations and white collared
jobs, highest salaries, less work, lots of perks,
independence etc. As usual politicians do enter
in to the scene and make the students to form
unions and affiliate to their parties. The
moment politicians find a grip in the
institutions, they start creating political
atmosphere by offering the students money,
false promises and manpower support. These
students get influenced by these politicians to
create polluted atmosphere in the institutions
on the pretext of casts, religions, examination
systems, displeasure with the staff or Head of
the institutions or Managements or sincere
students or innocent students or rich students
or top rankers etc. These students organise
strikes, dharnas, pen downs, walk outs,
boycotts of classes or examinations, gheroing
staff or Head of the institutions and disturb the
academic curriculum. But these small groups
of students do not realise their duties, targets,
dreams and their social responsibilities and
spoil the lives of many other who are really
 Page 180
interested in studies and career. Government
has introduced several laws and modified them
periodically by announcing severe actions,
penalties, debarring, imprisonment etc, to
control them. Still there is no end for it and
several incidents are recurring in many
institutions. Only people’s movement, parents
and teachers can stop these unethical
disturbances in the educational institutions in
the interest of their wards and Nation.
EMPLOYMENT
Un employed youth is another force in India
which needs attention immediately. Any
Government in the world advocates the
importance of education for the development
of the respective countries. It is a fact that
National out put would be better and more if
the productivity Vs quality and quantity is more
and that can be achieved only through
education, skill development and technology.
Even United Nations Organisation supports
financially and technically the poor and under
developed countries to improve the literacy
ratio. India is not an exception as the illiteracy
was 88% at the time of independence. Almost
all the Governments visualised this fact and
infused billions of rupees in all budgets and
reduced it to 15% level. Since two decades
Governments of India is encouraging even
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higher and professional education apart from

the primary education by bearing tuition fees
to all the economically weaker students and
providing scholarships, free hostel
accommodation, fellowships etc,. Now (as per
2011 census) a stage has come India has 6.8
Crore graduates, 73 lakh technical graduates,
30 lakh teaching graduates, 15 lakh medical
graduates. And by 2014 nearly 50 lakh students
are graduated and out of them 15 lakh students
are Engineering faculty per year. Every graduate
of Arts & Science or Engineering or Diploma or
Master of Business Administration or
Commerce or Agriculture or Pharmacy expects
to get Government job or a Bank job or
Software job which are lucrative now a days in
terms of salary, position, pension and security.
A blunder Indian Government did is its
employees are treated as their kith and kin by
providing highest salaries, free quarters,
attractive pension schemes, unlimited hikes in
pay scales, hikes DA, holidays, leave travel
allowance, medical reimbursement, loan
facilities with no liability of work turnover, no
responsibility, no accountability. Hence, the
dream of every educated person is to go for a
Government job. Nearly 20% of educated youth
try and try to get through the competitive
examinations to procure Government job for
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several years. Some survey revealed that

nearly 50% of the graduates are not fit for hiring
but preference of the students is high salary,
corporate companies and high dignity of cadre.
In general these graduates who could not
secure jobs keep idle under the pretext of
searching for better job. Most of them will not
compromise in taking any job and come up in
life. The present Government is very serious in
providing employable skills to the youth by
allocating significant funds in the budget and
advocating and encouraging them to utilize the
opportunity of Start UP scheme, introduced by
the Government with innovative facilities
including incubators, technical assistance,
finance and Tax sops. We have to wait and
watch how the youth react and use the
opportunity. It is the right time for the youth
to analyse the facts and figures with regard to
economy of the country, Industrial scenario,
agriculture fate, non profitable artisans,
increasing rate of unemployment,
disappointing trading activities, profitability of
low profile entrepreneurs etc, and take right
decision to get involved in any available means
to earn their lively hood.
 Page 183
AGITATIONS
India is subjected to several agitations from
many corners by many groups of people for all
sorts of demands or displeasures. Agitations are
of many types processions on main roads,
dharnas, gheraoving the officials, wearing black
barges and doing the duties or not doing duties,
pen downs to stop working in the offices,
groups of people taking out protest march with
placards, banners, half naked, sporting slogan
printed cloths or caps, shouting slogans all
along, erecting platforms to organise relay fast
or fast unto death, encircling the busy centres,
blocking the roads to bring halt of vehicular
traffic, stopping trains by sitting on the rails,
demanding the closure of shops, offices and all
establishments, obstructing the public
transport systems including autos, rickshaws
and even the private vehicles, collecting
signatures, damaging the public and private
properties, burning Government vehicles,
torching even police stations etc. The agitators
take such steps to bring their demands to the
notice of the Government or employer or
officials concerned. People who indulge in
agitations include all categories of society like
students, traders, workers, teachers,
Government and private employees, women
groups, transporters, auto drivers, truck drivers,
 Page 184
farmers, farm labour and many other groups.
Resorting to agitations for achieving the rights
of the people is by virtue of democracy or
mandatory or the only way to sort out the
issues. What is the role of Government or
employers in creating such situations that
provocate or make it compulsory to undertake
agitations. Much can be said on both sides,
because the vulnerable group of people fail to
get their legitimate claims in full or in due time
or in announced time. Government or
employers many a times over look the peoples’
demands as per the guidelines of the law and
over view the antecedents and repracations.
Any benefit provided to one group on demand
may instigate other group to demand as a chain
reaction. Hence, Government many a times
delay their decisions or delay the disbursement
process or postpone with promises or indulge
in negotiations and settle. Whatever may be
the reasons the agitations are causing public
inconvenience, loss of properties, loss to the
Government exchequer, crippling of
development, loss to the daily wage workers,
street vendors, loss to the business community
etc. Where is the end for this sort of agitations?
The Government or employers shall react
promptly when the notices are served for the
strike or agitation by the organisers and call
 Page 185
for negotiations and explain the plight on their
part, open up the rules and regulations and put
forth the reasons why they could not concede
the demands. But if the demands are legitimate
and as per the rules, stipulated Government or
employer has to concede and do the justice.
Why people do not honour the rules and
regulations, why people demand for freebies
and why Government could not be strictly
adhere to the norms. The answers are well
known to all common men that democracy
means freedom to fight for the right. The
leaders are afraid of losing the power and
coming to power in next elections. It appears
main intrinsic hitch is the promises made by the
politicians at the time of elections. Majority of
the promises are only to lure the people for
votes. If the particular party comes to the power
they find it difficult to keep up their promises
because of several factors such as financial
setback, the other groups start claiming for the
same benefits, lack of feasibility etc. And mainly
the opposition parties who failed to come to
power exploit the situations and provoke the
demanding community to promote agitations
or many a times they themselves organise
agitations or extend full support publicly even
by spending money from their party funds. It is
the right time for the politicians to realise and
not to give false promises.
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A very significant role played by the media

during the agitations is worth discussing. The
print media, digital media, social media on net
bring out very sensitive points of the situation
and transmit to general public in minutes.
There by the strength of the agitating group
swells, opposition politicians with their party
men enter the scenes in no time, rowdy
sheaters, anti social elements also make the
way. The media writes and shows live the
vulnerable issues to implicate and sensitise the
events. In general the Government
representatives take time to come to media
because of their hierarchy and rules to explain
their stand. In the mean time the scene
precipitates and leads to disaster.

For the benefit of the Nation and its

development the agitations are not good
practice. Government must stipulate rules in
such a way, keeping in view of the peoples
benefit, that no scope is given to the people to
agitate for their legitimate rights. The leaders
of the Government must discuss and finalise
the rules with elected members of all parties
and take written commitments from them.
Such rules are widely published, bring to the
notice of public through all means including
media and internet. The judiciary also is to be
 Page 187
advised or ordered not to entertain any cases
with respect to the agitations. The system has
to be practiced irrespective of initial
commotions among public. But entire
Government and its machinery must keep their
commitments to the people at any cost. The
planning commission and finance ministry
must allocate in the budget and make available
the funds in treasuries. When the system is
open, transparent, people friendly and non-
litigant question of demands and agitations do
not arise. Another important step in this regard
is to make all the parties not to give false
promises, lure with alms, mislead and fool the
public during elections or on any platforms for
the political gain.
CORRUPTION
The impact of corruption at all levels in
all angles from people to Governmental
machinery on National growth and
development has been dealt in this book
extensively. It is also stated that all the
Governments from the day of independence
are assuring the people to give corruption free
governance and still promising on all platforms.
The present Government lead by Sri. Narendra
Modi is contemplating to curtail the corruption
and taking a few constructive steps unlike
previous Governments. Especially Digital India
 Page 188

program may be one such move to address the

perennial problem. Already a few states started
digital technology to supply various certificates
on line to the public. With this facility people
need not go round the offices and staff but can
approach the Internet centres or Government
sponsored e-seva/ meesava centres and get the
certificates like birth, death, nativity, voter
cards, land records like encumbrance, pattadar
pass book etc., apart from payment of various
bills on line. Certain states also started approval
of building plans on line. The present
Government is also tracking transactions in the
Banks, restricting the cash payments, taxing if
the transactions go beyond Rs.10 lakhs, taxing
on the purchase of jewels above Rs. 2 lakh to
curtail the highest black money in rotation etc.
It is aiming to implement the distribution of
welfare scheme benefits to the farmers, weaker
sections and to anybody eligible only through
Bank accounts and is encouraging them to open
accounts without even minimum deposit. It also
announced attractive sops to the people who
like to bring the unaccounted money in to
white. When once the people need not
approach the Government offices for any
purpose the corruption rate and peoples’
hardships can be minimsed.
 Page 189

The efforts to bring down the corruption as

described is promising and it is time for the
Government to concentrate on the issues of
corruptive practices at the higher end, leaders
of the ruling parties, noted elected leaders of
any party and mediators. For the purpose the
Government must increase the strength of the
departments like Anti Corruption Bureau,
Enforcement Directorate, Intelligence cells etc.
But these departments and staff must be non-
corruptive otherwise the purpose is defeated.
On the other hand the people must change
their mind sets by booking the culprits when
pressured for bribes, by not being afraid of
harassments, by not fearing for the works to
be done are stalled, by not involving in illegal
activities, by not having selfish motto etc. This
takes a lot of time but it is possible if the
Government is sincere to go on trying to
inculcate such culture through innovative
programs such as swatchbharat, startups, skill
development etc.
POLITICS AND ELECTIONS
Yet another major factor to be addressed
in the interest of Nation is politics and political
system. These are root causes of every aspect
of Indian scenario. This subject was described
in depth in earlier chapters of this book. If the
political system, prevailing since decades,
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continues further our country can not see

future development any longer. The issue is
how to achieve a better and useful political
system. Stringent electoral reforms are to be
constitutionalised such as giving more teeth
and power to judicial or appellate systems,
Election commissioner, equal authority to
Police, CRP and STP during elections, no
references to regular judiciary against EC,
orders passed must be respected by total
Government machinery, EC must be final
authority for conduct of fair and peaceful
elections, power to frame stipulations on
election processes etc. As a control mechanism
EC must be answerable to CAG, Chief Justice,
Home Ministry and Prime Minister. This
proposal is only to create a fear complex among
politicians and awareness to people. EC finalize
the schedules of elections, recognition of
parties, scrutiny of contestants, forms the rules
and regulations before and after elections to a
particular period deems fit, directs concerned
Governmental departments to take action as
per rules against any misconduct and misuse
during elections, interferes in the matters of
elected members changing the parties,
disqualifies the erring members and conduct
the bye elections etc. It is possible to see free,
fair and better elections and when people with
 Page 191
criminal background, no education, past un
parliamentary behaviour and other fraudsters
can be eliminated from coming to govern the
country.
Next the Government, NGOs, media of all
sorts, voluntary citizens must try to inculcate a
culture of free and fair elections by advising the
public not to support or cast their votes to the
contestants who have criminal, rowdy, corrupt,
muscle power, miss using money power,
religious bias whether they belong to your
favourite party or community. Government
must allocate sufficient funds for the purpose
of conducting awareness programs,
advertisements, short films, seminars in the
higher educational institutions, in the villages
etc. This is a worthy expenditure in the lines of
bringing awareness programs for polio drops,
swatchbharat, mineral water, environmental
pollution and others. Even if 10% of unwanted
people are stopped from coming to State
Assemblies or Central Parliament in every
election conducted, Nation will be benefitted by
30% in all angles.
The Government has to implement e-
tenders for all sorts of works whether big or
small , whether the Central project or State
works or Zilla Parishad or Pnachayat’s, posting
of successful tender details in websites, posting
 Page 192

in websites of all reports on disbursements,

works in progress, schedules, auditing,
inspections etc., and providing facility to public
for getting RTA reports promptly either directly
or through Internet or through e-seva centers.
This will help to curb the politicians or their
supporters influencing the contracts, grabbing
the contracts, demanding commissions etc.
The Government shall totally abolish the
practice of luring the people with cash or kind
prior and during elections. Though it is a
herculean task but still can be managed with
the help of media by offering incentives and
recognitions, with the help of party workers
who are economically not sound and supporting
weak party by luring them with jobs or cadre
and with the help of honest people in the urban
poor localities and villages.
The present Government is very slow in
taking actions against the culprits of any kind
during elections through the present judicial
system, hence, the people in general are not
serious to change their mind sets. At least during
election times fast track courts or Lok adalats
or election appellate bodies or ad hoc
commissions with senior public prosecutors or
advocates or intellectuals are to be established
to hear the cases and give judgments instantly
 Page 193

and fast. With this action there will be quick

reactions in the public and at least certain
percentage of the politicians are deterred from
indulging in malpractices.
CONDUCT OF ASSEMBLIES AND PARLIAMENT
One of the worst functions of our country is
running of legislative Assemblies and
Parliament. Again it is the politicians, who are
polluting the highest constitutional
organizations. The elected leaders do not
follow the rules and regulations, do not
understand the value of time and prestige of
those institutions. Some of them start behaving
like street rowdies, argue like illiterates, blame
each other, shout like kids, break the furniture,
rise placards, shout slogans like common men,
move to podium and encircle the speaker,
disrupt the sessions, never oblige the speakers’
requests or orders, start digging the past,
manhandle at times, never allow the genuine
issues to be discussed, walk out of the sessions
abruptly to stall the proceedings, do not
maintain discipline, do not keep up respect to
themselves or to the houses etc. It is high time
to amend the rules pertaining to the running
of the legislative and parliamentary houses and
stringent disciplinary actions are to be
promulgamated for violations. No baseless
 Page 194

arguments, shouting of slogans, moving around

podium, blaming each other, prolonged
speeches with the past deeds of political
parties, uttering unparliamentarily words,
accusing others and any other activities that
disrupt and waste the time of the sessions are
allowed. Immediate suspension of such
violators and marshal out them are to be
strictly implemented and the session shall be
proceeded as scheduled with the existing
strength of the members and pass the bills etc.
ELECTION CODE
Presently election code is in vogue after
announcement of election schedules but
violations are still taking place. Maximum
actions taken against the complaints so far are
giving notices by the EC, receiving explanations
and at the most summoning the culprits for
interrogation and close the cases. This sort of
actions are not enough and it is a must to book
cases against them and penalize them including
suspension of the contestant concerned. Then
only public will have confidence in the election
process and hesitate to encourage such
violators. Among the codes of elections haste
speeches, mud sling with the unethical words,
blaming the other parties, making the ruling
parties always responsible for everything and
 Page 195
anything, using insulting words, imposing false
allegations, expressing false promises which are
impossible to execute after coming to power,
exploiting innocent people, miss leading the
public with false statements, distributing cash
or kind etc., are included. But each and every
party, their contestants and followers are
committing several violations till date. It is time
for India to ban haste speeches, blaming others
and insulting other parties with immediate
effect. So, the Election Commission must
reform as explained above and making supreme
court an appllete authority to get good results.
INDIA’S PERSPECTIVE IN THE COMING YEARS
We, the Indians experienced varied
governances from the democratically elected
Governments from the day of independence.
The leaders of earlier Governments were not
dynamic due to patriotic aroma with the
influence of Gandhiji’s preaching and practice.
They did not concentrate on Economic
development, modernization and open up to
the World but wanted to safe guard the Indian
culture, traditions, heritage, peace, harmony,
secularism and self reliance in all respects.
Though the development was slow and limited
but it was genuine and self made. India could
not be traced in the global net work. As the
years passed newer and exposed personalities
 Page 196

started entering into administration of India and

the advent of technology, advancement of
western countries and change of outlook of
younger generation, exposure to other world
and its development brought out a lot of
changes in the mindsets of the rulers and
people. Every Indian knows how the
metamorphosis of Indian growth,
development, political monarchy, political
corruption, political vengeance, power thirst,
craze for money and unethical practices have
taken inroads. Every citizen is taking his own
route to sail along with the winds of diversity.
Majority of the citizens are neutral in their stand
and simply watch the developments as mute
spectators. Only the eligible people cast their
votes during elections, wait eagerly to know the
results and feel satisfied if their candidate won
or simply feel sigh of relief if their candidate
looses. Some people rise their voice if injustice
is meted with, some express their displeasure
to the friends or colleagues, some watch the
TV news, hear comments, lose tempers and
keep quiet or some participate in agitations, or
some organize dharnas, some file public
interest litigation cases, some start protests of
relay fast or fast unto death and some influence
the members of Assembly or Parliament to
bring to the notice of constitutional authority
 Page 197
for justice. But those some people are a
negligible number of the society and their
efforts are vanished without any use to the
public.
Really speaking after several elections the
parties who ruled the country for a longer
period ended up with a scar of scams, distrust
and mollified. Though those parties assured
National growth and development at par with
the developed countries in the world, they
planned the budgets accordingly, they
expressed the vision for 20 years, emphasized
the need of eradication of poverty,
improvement of literacy, elimination of
corruption and disbursed the funds through the
state Governments for the benefit of the
people. But the resulted siphoning up of the
wealth of the Nation, flaring up of corruption,
stalled developmental projects paved the way
for a strong opposition party, Bharathiya
Janatha Party, headed by Sri Narendra Modi to
come to power in the Centre and in key States.
For any Government it takes minimum five
years to implement their projects, plans,
policies, reformed bills and reach their targets,
projections and satisfy the people. But our
mean political parties try their best to
destabilize the Government without any
hesitation, morale, patriotism, humanity,
 Page 198
responsibility as citizen start digging pits and
ditch the progressive Governments etc. They
indulge in such activities that hamper the
National integrity, economy, development,
global image, security of mother land, foreign
relations, faith of the people, faith of domestic
and foreign investors, religious harmony, law
and order, peace and tranquillity. Even a set of
leaders in the ruling party are adamant, over
enthusiastic, out spoken over controversial
issues and deliberately criticizing the opposing
parties and creating uncongenial atmosphere
for the governing body of the Nation. Like any
other party even BJP is also following the Indian
specific ethics to sustain the power, to cover
entire states in to their hands and become
strong party in Indian history. Some of the latest
burning issues are described below to explain
how things are moving against India’s future
vision and mission such as to become world’s
top economy, sustained growth of domestic
product, a permanent membership in UNO’s
Security Council, top inventors of space,
attaining top slot in the global market etc, etc.
FREEDOM OF SPEECH
Recently it has become a phobia to give utmost
attention to the comments of any person on any
platform and at any time by the opposition party
leaders or workers and especially media and
 Page 199

social networking sites. No doubt it is our

freedom, privilege and right under the
democratic principles to speak out whatever we
feel. Out of 132 crores of people if one or two
talk something and hundreds of people support
it, why the politicians and media make it viral.
Why there is such commotion among public.
These speeches generally do not impact the
people lives, their integrity and peace. But it
impacts the stability of the Government, growth
and development, investors’ confidence etc.
Sometimes ruling party members or party
supported leaders or journalists or intellectuals
make some statements in the public purely on
their own responsibility may be on National
interest which spark like lightening. Any
reference on religion or castes or language or
regions or culture or economic status made in
those statements bring storm in the country.
Why all these undue reactions? Is there any
possibility of advantage to the country or
Government or people due to the spurt of
events. It is the people to understand and
realize that it is of no use and serves any
purpose and on the other hand hampers peace
in the localities, locations, lively hood of millions
of poor people due to useless and unnecessary
disturbances in the country. Unfortunately
 Page 200

Government is also failing in inculcating the

culture of patience ie, intolerance. Recently
playing with the word “intolerance” murders,
retaliations, arson, agitations, loss of public
property, hurting noted personalities, blaming
the Government took place. Really speaking it
is unnecessary troubling the Government and
Nation.
The educational institutions are not spared
from the disturbances in the past and present.
There are certain incidents in some institutions
where a section of students were ill treated by
the managements or students of rich families
or superior castes. The seriousness is not felt
in the institutions unless the situation goes out
of hands with death or loss of property. There
is a proverb that you can bend a twig but not a
tree. The managements or concerned
Government departments must promptly react
to the rumours or complaints are received.
Arranging the student meetings with the
managements, hearing the grievances,
adjudicating the truth, counselling the students,
apprising the parents and taking unbiased
actions may subside the polluted atmosphere
of the institutions. In fact no Government dares
to take fundamental remedial measures
through the amendments of constitution. A
 Page 201
question arises why the castes, sects, sub -sects
or religions or regions come into picture in
educational institutions. Even the application
forms must be devoid of those controversial
segments. There must be only economical
status to be taken into consideration to provide
financial assistance to the poor students. This
will avoid several mishaps in the society.
The reservation policy is yet another civil
issue to be immediately addressed by the
Government. This issue is burning since several
decades. It is true that India needed to
introduce reservation policy to uplift the poor
through means of education, employment,
participation in governance etc, but the
political parties later used this reservation
policy as the weapon to have vote banks. Only
the bad step taken by the early Governments
was, bringing and roping caste, sect,
community, religion, minority into reservation
policy. The issue has precipitated and India is
subjected to several violent agitations in almost
all the states. Just recently Jats in Rajasthan,
Kapus in Andhra Pradesh, Patels in Gujarat
rocked the entire Nation. Some wested
interests backed the movements to destabilize
the ruling Governments. The Central
Government also must regulate the decisions
of the individual states with regard to common
 Page 202
issues in the National interest so as to avoid
disturbances in other states. For example
Hariayana Government recently conceded Jats’
demand for reservation but the other states
could not do because of their own inhibitions.
The best way to solve this problem for the
benefit of India is to base the reservation award
only on economical status and shall be based
on collective income of the family and should
be available for the first two children of that
family. A data base with address, photographs
must be maintained and displayed on the
websites. Reservations must be applied to only
education, employment and women
empowerment.
Let the people of India have faith and hope
on the performance of present Government
which has taken up several innovative and
remedial measures such as Make in India
program to improve production and product
development both for domestic and export
purpose and to utilize maximum resources we
have, Start Ups program to encourage budding
technocrats to start industries with innovative
ideas for which Government assured financial,
research, guidance, incubators facilities,
changing Fiscal Matrix for better economic
growth, ease of doing business program to
attract foreign companies to establish business
 Page 203

with Indian counter parts, smart cities program

to convert a few cities all over India into digital,
high end greenery, hygienic environs, IT hubs,
transparent management etc, Swatch Bharat
program to make India clean and green and
many more. If people have patience and
opposition political parties cooperate and the
seriousness and sincerity of Government
machinery are sustained, the leaders within the
ruling party do not create unwanted scenes for
10 more years India will shine and be elevated
to Developed country status. Let us hope for the
BEST.
Dr. APJ Abdul Kalam quoted and prayed in his
book, “Ignited minds” at the end “ I, Apart from
praying for the health and happiness of my
teachers, friends and relatives, Oh Almighty,
create thoughts and actions in the minds of the
people of my Nation so that they live united.
Help all the religious leaders of my country give
strength to the people to combat the forces of
division. Oh! God bless my people to work and
transform the country in to a precious nation
soon”