Economy in India 2020
India by and large is endowed with untapped abundant resources, with its strategic locations straddling the continent of Asia and the growing prominence of the Middle East. A nation with unique multicultural and religious denomination, I can only say that this sub-continent country can become a Superpower economy by 2020. First, we set our sights to the Energy sector specifically India’s biofuel industry. It is an established fact that the country is the “world’s seventh largest energy producer, accounting for about 2. 49% of the world’s total annual energy production.
In this regard, the need for an alternative energy source is equally important in making India a superpower status by the year 2020. I have no doubt, this sector will play a vital role in the India’s energy future, with the recent approval of National Biofuel Policy by the Indian government. This national policy establishes targets, specific definition of biofuel, the raw materials to be used, balanced land use policy with regards to food security and energy security, establishment of marketing and purchasing mechanism, financial incentives, research & development and quality control & assessment.
With this policy in place, biofuel would indeed be one of the pillars of the energy sector. As far as nuclear energy is concerned, India is considered to be in league with other established nuclear powers in the world. With their proven knowledge in nuclear power, India can move forward by harnessing this power by re-channeling nuclear know-how and thereby contributing to reduce gas emissions in the world, improve air quality around India and provide much needed energy to fuels its rapidly expanding economy.
In the field of alternative energy, India has committed to “increasing solar power generation, improving energy efficiency and enhancing carbon sinks as a route to “greener growth” and “laid out an ambitious plan to generate 20GW of solar power by 2020, which could equate to 75% of the world’s solar energy. ” This commitment by the country lays emphasis on the global role of India in reducing carbon emissions by 2020, which in turn will make India a green economy.
Let us now look at India’s education specifically in the field of engineering and science, the best way to hone the skills of nations greatest resource is to allocate the required investments in education, with the two fields at the top of the list. One of vital foundations of super power economy is backed by engineering and science. Take the case of Japan, it is considered one of the leading nations in the field of science and engineering.
The government’s policy must be “predicated on the belief that human resources are the most important determinant of overall development. ” We now move forward to the transportation industry, in a super power economy, an efficient transportation is one of the most vital ingredient to keep the economy forward. One way of doing this is to modernize India’s railway transport that is at par with the railway network of Europe. In order to have an efficient railway, the government must encourage high level of private involvement coupled with government support.
Another area in transportation that needs further attention is the road conditions, wherein it needs the badly needed massive rehabilitation and expansion to reach out the rural sector of the economy, in other words the “trickle down effect. ” By 2020, if transportation efficiency is established, there is no inkling that the people will be the most benefited in the economic growth of the country. Let us now take the case of production, the role it will play, in order for India to become a super power economy.
In the area of steel production, the best way to move forward for India is to establish a government approved National Steel Policy which could “envisaged steel production to reach 110 million tonnes by 2019-20. Further, based on the status of MOUs signed by the private producers with the various State Governments, it is expected that India’s steel capacity would be nearly 293 million tonne by 2020. ” At this point, India would be considered one of the leading steel producers around the world.
But in order to achieve this the steel industry must be exposed to private investment “by (a) removing it from the list of industries reserved for public sector and (b) exempting it from compulsory licensing. Imports of foreign technology as well as foreign direct investment are freely permitted up to certain limits under an automatic route. With the foundation in place in the steel industry, it necessary follows that more products will be produced, infrastructure support will be enhanced specially to the service sector focusing on the business process outsourcing, and more efficient electric grid transmission lines.
As per the ratings of the prestigious ” World Steel Dynamics”, Indian HR Products are classified in the Tier II category quality products – a major reason behind their acceptance in the world market. EU, Japan have qualified for the top slot, while countries like South Korea, USA share the same class as India. ”
As far as flat and long steel product consumption is concerned, in countries like India compared with a 1st world country the United States, my observation on this is that, the U. S. as used flat and and long steel as vital tool in its stimulus measures with regards to more fund support to major infrastructure projects such as roads, bridges, airports, and railways, whereas “growth of the steel industry in India is also dependent, to a large extent, on the level of consumption of steel in the domestic market. Steel consumption is significant in housing and infrastructure. ” Let me conclude this piece by saying that with right policies in place in the areas of energy, education, transportation, and production, India will truly be a super power economy in the next 7 years.