United States of America was considered the “super power” for several years because of the huge purchasing power the country and its citizens had.

Now we are witnessing that country struggling to put its act together. There is clearly a major melt-down that is rocking the nation and USA is reeling under extreme economic pressure. The per capita income of an American is said to be USD 43,000/- p.a. (don’t know if they added those who were unemployed while calculating this)

The US economy was pump primed by encouraging people to borrow and borrow while the world saved for the average American to spend.  Luxury was made within reach of every American with the help of easier and cheaper loans which was enticing enough because of lower monthly commitments demanded by the financing banks and companies.

This leads us to a question.  Is it good to have a high per capita income?  It is good to have a high per capita income but then the per capita savings should also be higher and not per capita debt.

The global need today is stability, peace and harmony. Wherever we live in this globe, we need livable, lovable and affordable living conditions.

In this backdrop, can India become the preferred  global destination for manufacturing and services sector? Definitely and most certainly YES.

Here are some of the ways in which India can quickly capitalize on the situation and become the global destination:

1. Use the large population in creating more and more skilled and semi-skilled workers

2. Use the knowledge gained over the last several decades in manufacturing and start adopting the “best practices”

3. Use the technologies and processes that have been built by the Indian technicians for the multi-national companies to make Cars, Aircrafts, Ships, Capital Goods in India at much lesser price

4. The technology companies like Infosys, TCS, WIPRO, Satyam (yes I included Satyam) should use the knowledge and processes absorbed and assist the companies in other sectors

5. Ensure growth in the suburban and rural areas of India

6. Use the natural resources of India properly, more importantly avoid at all costs politically motivated interstate rivalries in sharing the natural resources

7. Encourage small entrepreneurs by providing them finance for their projects at affordable rates

8. There is a need for change in the mindset of business leaders and we need “New Leadership” which has the open mind to accept “next practices”

9. We need to quickly build the infrastructure requirements and create new cities

10. We need to bring “inclusive growth” and ensure that the amenities and facilities are made available to all the sections of the people

11. We have to provide equal opportunities to all the sections of the society

12. We need to reverse the “brain drain” that has happened over the last few decades and bring back all the talent pool into the country

This will ensure that there is sustained growth for all and there will not be any “super spikes” and “melt downs”. The per capita income of the Indians can increase to even USD 10,000/- p.a.   Considering that Indians are more inclined towards savings than spending, this per capita income growth will be more sustainable and not blow up the economy. Tthe west is trying to change our mindset to a spending mindset so that they can sell their wares to us, but I doubt  if we Indians will succumb to that.

This would ensure normal, peaceful, harmonious and happy living for all.  I think that prosperity would go a long way in providing a peaceful atmosphere.  When disparity in wealth goes away, jealousy and animosity might also go away is my view.

India need not aspire to become the super power of the world. India needs to look inward, capitalize on the huge resources and transform the nation into the global destination.

If we can become the global destination for IT/ITES in such a short span of time why can’t we be the global destination for the entire services sector and the manufacturing sector?

For doing this, however, we need the government and allied machinery to be much more proactive and much more public friendly.

—Contributed by CA. T P Anand, My silver jubilee friend

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