Apropos of an article published in "The Economist" titled’ India’s economy’ published on February 1^st 2007, I wish to air my views on the issue that run as follows:

The writer has mirrored Indian economy, its growth parameters and hurdles to meet the future economic challenges in a very lucid, elaborative and analytical way. He sketched out India’s economic odyssey started way back in 1974.

Although India is undergoing a ‘paradigm shift’ but the basic reasons behind its sluggish growth rate are same as it were at the time of its independence. Our then leaders emotionally embraced ‘Social Welfare State’ philosophy that ultimately and unfortunately resulted in widespread corruption, red-tape, nepotism and unmanageable debt ridden economy. During early 90’s, thanks to the World Bank that advised then Prime Minister P V Narsimha Rao and Finance Minister Dr Manmohan Singh to liberalize Indian economy. Otherwise we may still be lingering at 6% growth rate.

The writer suggested three basic reasons behind India’s widening fiscal deficit and drooping economic health. The figure of 9% consistent growth rate for next five years seems unrealistic if we take into account our lousy infrastructure for manufacturing and service sector, turbulent socio-religious phenomena, widespread corruption, widening gap between haves and have-nots, present state of employment opportunities, angst-ridden farmers’ plight, growing unrest amongst youth. The list is infinite.

Besides India’s poor infrastructure, inflexible labor laws, awful public services as outlined by the writer, I wish to make an addition to this list.

I believe our constitution has become outdated and suffers from many loopholes to be plugged in. At first we should cull and cross out all redundant and manipulation-prone laws to make our constitution growth and people oriented. Center, State and Concurrent lists need reviewing. We should reallocate all subjects as per the present day situation and in the better interest of the both center and state governments. It should be made a facilitator rather than a hurdle to economic growth and social prosperity.

Secondly, recent cash-for-query scam and enactment of 284 laws under 9^th schedule of the Indian Constitution row has exposed the Indian Parliament before the world. India notably figures in the most corrupt nations of the world. Here, corruption has become the way of life. Even law makers make and amend laws for money. So here no other but God can do the needful.

Thirdly, black money is running parallel to Indian economy. If this money may be streamlined and accounted for, we can pour in some money into elementary education and basic infrastructure. Moreover, blank money further widens the gap between the rich and the poor, the root cause of unrest.

Fourthly, unfortunately India has emerged as a hub of terrorism. To curb and counter this looming menace from last 60 years, Indian government has to earmark major chunk of its outlay to defense sector. Although mutual peace endeavors between India and Pakistan are afoot, but still both have to spend a lot on defense deployment to keep any internal or external aggression at bay. Because of this divide, the other developed nations grind their own axe and make this divide more deep and everlasting by supplying weapons to both the nations. Money used in amassing weapons can be diverted to many developmental fronts which can yield high rate of return.

Fifthly, India has to further its 1991 policy on liberalization and privatization. It has to open its all, with a few exceptions, sectors to private investment to encourage creativity, competitiveness and foreign direct investment required to feed its gigantic citizenry at cheaper rates.

Lastly, despite the recommendations of the Education Commission (1964-66) popularly known as Kothari Commission, National Education Policy (1968), National Policy on Education (1986) crafted by MHRD, National knowledge Commission (2006) and ‘so called government efforts,’ India could spend only 3% of its GDP against the target of 6% on education As per a recent study by Punjabi university Patiala brought out that only 4.13 percent students in Punjabi university are from the rural areas where 66% of the total population resides. The national target to achieve a 15% enrolment ratio on higher level by 2015 seems to be a distant dream. If the country is to take advantage of its young population, the high investment in higher education is the only option.