Get rich fast or die trying: India's choice is a no-brainer
A $4-trillion economy growing at 8.5% adds roughly $340 billion annually (about Pakistan's entire GDP). That's cash for defence, infrastructure, and lifting millions out of poverty. Without it, India risks being a populous but toothless giant, ignored by global players. As the saying goes, money can't buy love, but it sure buys aircraft carriers and friends, in need. We just became the 4th largest economy, but per capita GDP is still abysmal. The population isn't shrinking. The economy must grow. We'll soon overtake Germany to claim the 3rd spot, but the gap with China is humongous.Make Reforms Un-dirty AgainManmohan Singh isn't remembered for his two terms as Prime Minister but for that one stint as Finance Minister. You know why! India's economic story since his 1991 reforms is a tale of bold starts and frustrating stalls. Born from a balance-of-payments crisis — when India had just two weeks of import cover — the 1991 market opening was a giant leap. It slashed the Licence Raj, devalued the rupee, and opened trade, catapulting GDP growth from what is derisively called the "Hindu rate" of 1.25% to a savvy 7.5% by the 2000s. Foreign exchange reserves quadrupled in five years, and poverty rates dropped significantly.advertisementPM Modi's first term sparkled with promise: Make in India, GST, and FDI liberalisation. Land reforms were shelved, but other things seemed on track. The second term, however, went full Nehruvian: big government, sluggish disinvestment, populist socialist policies, and a retreat from agricultural reforms after farmer protests in 2020–21. To make matters worse, a global pandemic caused significant damage. The third term, now a year old, does not feel much different.Disinvestment DilemmaModi promised to get the government out of business, but public sector undertakings (PSUs) remain sacred cows. Manufacturing's share of GDP has slumped to 13%, the lowest since 1967, despite Make in India's lofty 25% target. The Air India sale is the lone silver lining. The government clings to PSU dinosaurs, flaunting their turnarounds as trophies. Running businesses, even profitable ones, isn't the government's job. Niti Ayog says 100 billion dollars lie locked in here.Labour ReformsOnly 10% of our workforce is skilled, compared to 60% in China. Coupled with a focused Skill India push, the necessary unshackling of the labour market can give impetus to the manufacturing sector, and help realise the Make In India dream. The 2020 Industrial Relations Code eased hiring and firing, but it's stuck in trade union quicksand, including those from the Sangh Parivar. Streamlining labour laws could turbocharge manufacturing and attract global value chains, where India trails Vietnam and Thailand. Labour market reforms could create millions of non-farm jobs, critical for our educated youth, a 2024 UNU report notes.advertisementAnother big-ticket Modi promise was improving the ease of doing business. Though India has moved up the global ranking for facilitating businesses, Licence Raj is alive and kicking butt.Make Black White AgainAgriculture employs 45% of India's workforce but contributes just 15% to GDP. The 2020 farm laws crashed into farmer protests and were repealed in 2021. Since then? Crickets. Farmers called these laws black laws because they alleged lack of consultation. What's stopping the government from consulting farm interest groups now and crafting laws to boost agricultural output? Instead of dodging taunts about failing to double farmers' income, the Centre needs reforms that can actually double their income.Make in India & Skill IndiaMake in India is a mixed bag. FDI inflows hit $81 billion in 2020–21, but manufacturing's share of GDP hasn't moved. Skill India, launched in 2015, aimed to train 400 million workers by 2022 but reached only 40 million. Apple, Google, and Tesla may cheer Make in India, but do we have workers matching China's precision tooling and motherboard craftsmanship? A 2025 World Bank report urges doubling down on skills and tech to hit 8% growth. Revamping these initiatives could add 2% to annual GDP, OECD estimates.advertisementMoney Talks, Poverty WalksIndia's strategic headaches — China's border games, Pakistan's proxy wars, and a potentially isolationist US — demand economic firepower. A richer India can afford $120-billion defence budgets, not the $81-billion it scraped together in 2024. It can fund regional aid, like the $1-billion Nepal package in 2014, to counter China's Yuan-erosity. It can absorb shocks like the 2020 recession or demonetisation's 2016 thrashing.Poverty reduction is the flip side. Despite growth, 40% of India's workforce languishes in low-productivity agriculture. Trickle-down economics has flopped. Income inequality has spiked, and unemployment is unsustainable. Schemes like MGNREGA (2005) and Jan Dhan Yojana (2014) help, banking 300 million unbanked and guaranteeing rural jobs, but they're band-aids. Every election, we have a new set of band-aids. The cure? Grow so fast that wealth actually trickles down. Sustained 8% growth can create the 1 crore+ jobs India needs annually.The War ConsensusPM Modi wields more political capital than Narasimha Rao and Manmohan Singh did in 1991. Free foodgrains, welfare schemes, and rapid infra upgrades have only enriched his clout coffers. He must spend it.advertisementThe country's mood is electric. We're united against terrorism bred by our western neighbour. To the world, we're a rainbow coalition, with all-party delegations pitching India's story. But if it takes a war to unite us, it's time we declared war on slow growth. If PM Modi can rally the opposition to counter Pakistan's narrative, why not for economic reforms? If we can forge consensus against terrorism, we can do it for growth. If terrorism is non-negotiable for PM Modi, then neither should be his promise of India becoming a "Developed Nation by 2047".India's at a crossroads. It can coast at 6.5% and stay a regional player. Or it can reignite reforms, aim for 10%, and create jobs, buy drones, and gain global clout. Manmohan Singh turned a crisis into opportunity in 1991. PM Modi must turn his conviction into reality. Ditch the socialist nostalgia, privatise the dinosaurs, liberate labour, and supercharge agriculture. Make in India and Skill India need a reboot, not a requiem. Politics can wait; growth can't.China's rising clout isn't about its military. It's about three decades of relentless high growth. Military might is a buy product of economic ascent.As he navigates the second year of his third term, PM Modi must channel his inner Manmohan Singh, not his inner Nehru.Tune InMust Watch
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Time of India
25 minutes ago
- Time of India
Operation Sindoor, Trump's ceasefire claim set to spark debate in Monsoon session of Parliament
The monsoon session of Parliament may see a discussion on Operation Sindoor, following Opposition demands for clarity on US President Trump's claim of mediating a ceasefire between India and Pakistan. The government signaled openness to debate and reply. Other issues raised include electoral roll revisions in Bihar and the Pahalgam attack, with calls for Prime Minister Modi's statement. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The monsoon session of Parliament , beginning from Monday, may witness a discussion on Operation Sindoor as the government has indicated that it is open for discussion and would give an appropriate reply on the Opposition's demand for a response on US President Donald Trump's claims of mediating the ceasefire during the India-Pakistan conflict At the customary all-party meeting ahead of the session on Sunday, the Opposition unanimously demanded a discussion on Operation Sindoor, especially Trump's claims of mediation during the four-day India-Pakistan conflict in familiar with the matter said a senior Union minister is likely to make a statement on Operation Sindoor in both Houses of parties also raised various other issues including Special Intensive Revision (SIR) of electoral rolls in Bihar ahead of the assembly elections, an exercise that it claims threatens people's voting rights, and the April 22 Pahalgam terrorist attack Union parliamentary affairs minister Kiren Rijiju told the media after the meeting that the government sought coordination with the Opposition for the smooth running of the month-long session. There should be government-Opposition coordination in running Parliament smoothly, he said the government is very much open to discussing issues like Operation Sindoor and will respond appropriately in Parliament to Opposition raising the issue of Trump's ceasefire claims. However, he added that the ruling side would discuss all issues in line with rules and Gaurav Gogoi said his party sought Prime Minister Narendra Modi's statement on Trump's claims, "lapses" which led to the Pahalgam attack and the SIR of electoral rolls in Bihar. He said it was incumbent on the PM to give a statement in Parliament on key issues raised by his Singh of AAP said he raised the alleged "poll scam" of SIR in Bihar and Trump's claim that he brokered the ceasefire between India and Pakistan. Responding to a question, he said the INDIA bloc was only for the Lok Sabha polls and that the AAP would contest assembly elections on its Sasmit Patra said the Centre can't escape responsibility for the deteriorating law and order in states and that Parliament should debate it. He was referring to an incident of self-immolation by a college student and another case of a 15-year-old being set on fire by a group of men in John Brittas said the PM should speak in Parliament on Trump's claims on Operation Sindoor and on the Pahalgam terrorist of various political parties attended the meeting chaired by Union minister and leader of the House in the Rajya Sabha JP Nadda. Rijiju and his junior minister Arjun Ram Meghwal also represented the government at the bloc parties have resolved to raise during the monsoon session the issues of Pahalgam attack terrorists not being brought to justice, Trump's repeated claims of mediation between India and Pakistan and the SIR of electoral rolls in Bihar.
Time of India
25 minutes ago
- Time of India
Our electric, hydrogen & flex industries will become number one in the world: Nitin Gadkari
India is considering a cut in the goods and services tax (GST) rate on fuel blends with higher ethanol content, Nitin Gadkari , minister for road transport and highways, said at an ET Roundtable in New Delhi on July 17. He added that this will encourage greater adoption of vehicles that run on 100% ethanol, which will help reduce India's fossil fuel imports, cut down on pollution and make the country self-reliant. The minister said his intent is to achieve the daily award of 100 km of national highways, compared with the average of 23 km in FY24 or 46.7 km in FY18, the highest so far. Edited excerpts: Explore courses from Top Institutes in Select a Course Category MBA Management healthcare Technology MCA Product Management others Digital Marketing Finance Others Degree Operations Management Data Science CXO Cybersecurity Artificial Intelligence PGDM Project Management Design Thinking Public Policy Leadership Data Science Healthcare Data Analytics Skills you'll gain: Financial Management Team Leadership & Collaboration Financial Reporting & Analysis Advocacy Strategies for Leadership Duration: 18 Months UMass Global Master of Business Administration (MBA) Starts on May 13, 2024 Get Details Skills you'll gain: Analytical Skills Financial Literacy Leadership and Management Skills Strategic Thinking Duration: 24 Months Vellore Institute of Technology VIT Online MBA Starts on Aug 14, 2024 Get Details Who is going to be the next president of the Bharatiya Janata Party (BJP)? by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Own a Limited-Edition Villa at ATS Dolce ATS Infrastructure Ltd Learn More Undo Your question is right, but the person is wrong. Only the president of the BJP can answer this. Are there differences between the RSS and the party about the position of president? I have no idea. All talks are within the party. Maybe Mr (JP) Nadda will be able to tell. Live Events Will the next president be someone who has been general secretary? I don't know. If I knew, I would have told you. Are you okay with the alliances in Maharashtra? Politics is a game of compromises, compulsions, limitations and contradictions. The distance between ideal politics and practical politics is increasing. There is deterioration everywhere. The people you attacked for corruption are with you today. I told you that there are no permanent enemies in politics. And as the situation evolves, people keep adapting. There has been a backlash against ethanol being imposed on users. What is the current programme? Initially, India needed surplus food grains. But now we have a problem of storing these surplus food grains. The second problem is that our minimum support price (MSP) is high, and the market price is low. That is why I have been working on a mission since 2004, which is the diversification of agriculture towards the energy and power sector. Today we are importing fossil fuels worth ₹22 lakh crore and our energy dependence is at 85% imports. Economically, this is a challenge. Besides, transportation accounts for 40% of air pollution. On the one hand, there is an economic as well as environmental problem and, on the other hand, the share of agriculture in our GDP is just 12% compared to 20-24% of the manufacturing sector and 52-54% of the service sector. Due to the high levels of unemployment, poverty and starvation in the rural and agriculture sector, a huge part of our population has migrated and urbanised, which in turn has led to a lot of problems for towns like Delhi, Mumbai, Kolkata and Chennai. I think it is time to increase the share of agriculture in the GDP from 12% to 24%, and the best way to do this is to reduce the import of fossil fuels and move towards converting surplus food into fuel. How will this ecosystem develop and help India? We are working towards converting surplus food to fuel. Currently, we are using E20 which is a fuel blend of 20% ethanol and 80% gasoline. We are now exploring to increase it to 27% and eventually 100% ethanol fuel that can completely replace gasoline. This can be done through flex engines. Now, 11 companies including Tata Motors, Mahindra & Mahindra, Toyota India and Hyundai Motors, among others, have started (working on) this flex engine. Even two-wheeler makers like Bajaj Auto, TVS Motor, Hero Moto and Honda all are working on 100% ethanol motorcycles. Besides, work is on to blend 10% isobutanol with diesel for commercial vehicles and develop ethanol-run generators as well as other agricultural equipment. India's automobile industry is growing at a fast pace. We are now the third largest at ₹22 lakh crore behind China (₹49 lakh crore) and the US (₹78 lakh crore). Now there is availability of electric, ethanol, methanol, bio diesel, bio energy and hydrogen which can serve as environment-friendly and cost-effective replacements for gasoline. We have also started work on using bamboo in thermal power plants as an alternative to coal as bamboo has high calorific value and produces less carbon dioxide compared to coal, which will help to reduce air pollution too. It will take some time to develop the ecosystem, but this will help to increase per capita income in rural India and the share of agriculture (in the GDP) from 12% to 24%, thus making us self-reliant. India's water table is decreasing, and we see water scarcity in certain parts of the country. How can we address this? There is no water shortage in India. The way we made the power grid and the road grid, we need to make a water grid. There are 49 river connectivity projects in the country. Every year, flooding causes damage worth ₹2-2.5 lakh crore. While north India has enough water, the problem is in states like Gujarat, Rajasthan, Maharashtra, Karnataka, Telangana, Andhra Pradesh, Chhattisgarh and parts of Odisha. I don't have the entire plan ready right now, but water availability is adequate in India. What we need to do is reduce flooding, increase water conservation through recharging ground water, and take surplus water from one basin to another. What is the impact of China's restrictions on India's automobile industry? Our young population is very talented. We currently have four active areas of research. These are lithium ion, sodium ion, zinc ion and aluminum ion batteries. Now the problem is that we are dependent on China for lithium ion batteries. But our people are doing such a good job that in two-three years, we will become self-reliant. Then we won't need it. Besides, we are going big towards scrapping old vehicles. This will help us extract special metals like cadmium and recycle aluminium, rubber, plastics and steel. Our electric industry, hydrogen industry, and flex industry will be number one in the world. In five years, India will be number one in the automobile sector. Is ethanol commercially viable compared to petrol? What can be done to increase the offtake of ethanol as a fuel? Ethanol is being used in race cars around the world. I have got a patented technology from Russia, currently under trial in the ministry of petroleum and natural gas, to increase the calorific value of ethanol and bring it on a par with petrol. There is a difference between ethanol and costs between ₹54 and ₹65 with the average cost at ₹60, while the rate of petrol is now ₹120. So it is at half rate. So there is no difference in cost, taking into account fuel efficiency, whether a vehicle is run on petrol or on ethanol. The second benefit of ethanol is it cuts our fossil fuel imports. Thirdly, pollution is reduced, agriculture gets benefitted and it boosts rural employment generation. However, there is no adoption of higher ethanol blended fuels because of the 18% GST rate compared to 5% on fuel with up to 20% ethanol. Besides, the difference in the calorific value of ethanol vis-a-vis petrol makes it unviable. It is not becoming popular due to the lack of economics. I presented this to finance minister Nirmala Sitharaman, and she informed me that the government could make it 5% in the next GST Council. Will there be any benefit for carmakers under CAFE (Corporate Average Fuel Economy) 3 norms? Extensive meetings have been happening on the issue at the highest level and there is a consensus that we need parity between electric vehicles and flexi engines. The old CAFE norms were electric-centric. The new norms will balance both flex and electric. Different car makers are lobbying to protect their interests, but we will maintain the equilibrium keeping in mind the interest of the country. Pollution, cost, imports and benefits for agriculture will be taken into consideration when we firm up the norms. We have seen a slowdown in the award of contracts in the road sector. Why is that? Earlier, road projects were awarded on the basis of acquisitions or availability of just 10% of the land. Now, we have mandated the availability of 90% of land with the developer, in the absence of which the appointment date is not assigned. Besides, getting environment and forest clearance is also a requirement. Now, we award the project only when everything is clear. My project award rate has been 38-40 km. Now my intention is to do 100 km per day. This is not my declaration, it is my intention. Neither is it a political declaration. It is a target for our ministry. I will take it to 100 km. Many existing car buyers in Delhi are worried about changing emission norms. What is your take on it? Technology keeps changing. This is a universal process and happens everywhere. We have to keep pace with the world. Earlier, when we had proposed Euro VI emission norms, there was pressure from multiple stakeholders. After several meetings, one day I said you have to go from Euro IV to Euro VI. Everyone adopted it after a lot of anger and resistance. Today, it is being successfully implemented. Currently we are on Euro VI norms but the world is moving towards Euro VII. We want to be at par with European nations, so we are preparing for it. What are your plans regarding asset monetisation in your sector? There is no shortage of money. We have multiple models including the engineering procurement and construction (EPC), the build-operate-transfer (BOT) and the hybrid annuity model (HAM). Soon, even toll barriers will be removed. The toll will be deducted from your bank account based on your entry and exit. You don't have to stop anywhere. When I switched to FASTag, toll income increased by ₹10,000 crore. Going forward, when I remove the toll barrier, it will further increase by ₹10,000 crore. In last two years, toll income was ₹1,40,000 crore. If I monetise my project, banks and investors will queue up for it. The InvIT model, when introduced, was oversubscribed by seven times in the first seven hours. There is no shortage of money. When you invest in the InvIT model, I will give you over 8% return. Road safety has been an issue in India. What are the measures being explored? When I asked automakers to install six airbags, they opposed it. India had set standards for the New Car Assessment Programme (NCAP), which was initially opposed. Now, all the small cars in the world are coming to India for testing and all auto makers are competing among themselves to develop the safest cars. Besides, we are putting in place the bus code and truck code that will be at par with international standards, aimed at enhancing road safety. I am not going to compromise with road safety and people's lives. Despite multiple efforts, road accidents have been on the rise. What is being done to address the problem? We haven't succeeded in curbing highway accidents as much as we wanted. This is our only dark area. Every year, there are 5 lakh accidents and 1.8 lakh deaths in India. The 18-34 age group accounts for 66% of deaths. We made two rules: if there is any road accident and people take the victim to a hospital, then they will be called Rah-Veer and be awarded ₹25,000. Secondly, wherever the accident occurs (state road or NH), hospital expenses (up to ₹1.5 lakh) for first seven days will be borne by government. We did a study which showed that if people are rushed to the hospital immediately, then 50% of lives will be saved. We also came up with a new order that if one buys a two-wheeler, then the company will give two helmets of ISI standard. We made six airbags mandatory in cars. In road engineering, detailed project reports (DPRs) made a lot of mistakes. We found black spots worth ₹40,000 crore. We are making improvements now. We have also decided to create tall dividers to avoid accidents as people jump and cross roads. We are also introducing road safety courses. But society needs to follow traffic rules. We are also working on creating air strips on roads to help accident victims by airlifting them from the site of accident, if needed. The quality of road construction is questioned time and again. Where is the problem and how can it be fixed? Initially, I was building roads from concrete. But cement companies raised rate of concrete, and I moved to bitumen. Now, bitumen and water are not friendly and since our drains are not of good quality, holes come up on roads or broken patches develop. From now on, the drains will be precast. So, if water flows and does not lock up, there will be no damage to our roads. We are adopting the best practices available worldwide for developing our national highways. We have also made changes in detailed project report, aimed at attracting good people who may charge 4% extra but not compromise with quality of construction. There is an earlier fault of mine that I am now trying to fix. There used to be 15-20 companies working with the National Highways Authority of India (NHAI) and I felt they were making a cartel. So, I made technical and financial qualifications liberal. As a result, 350-400 companies qualified for road construction, but the quality got compromised. I shouldn't say this but where horses used to qualify, donkeys too became eligible to bid. So, I backed out and reversed my decision. Also, the earlier practice of awarding the project to the lowest bidder has been done away with and hopefully it will address the problem to some extent. What are your views on welfare politics as many state governments have started announcing schemes before elections? This is a competition, but people have to decide. I am also a member of parliament, but I told my people, if you want to vote, you vote, if not, then don't. I will work regardless of whether you vote or not. We need to redefine the meaning of politics. Power politics is not politics. Working for the society is politics. My ambition is to work for society. I did not put up any posters but I still got votes. If you do good work, you get support. I tell my colleagues that people's trust and love is your political capital.
Time of India
an hour ago
- Time of India
Rings exchanged, border closure delays nuptial ties
Nagpur: Engaged to a girl in Dherki town of Pakistan's Sindh province six months ago, Mukesh Motiyani, 30-year-old finance professional, is anxiously hoping the borders open soon. Tired of too many ads? go ad free now The fiancee of Dalip Kaityar's brother too is now stuck in Pakistan, though they were engaged in 2023 with plans to get married soon. Sagar Kukreja, an Indian citizen, got engaged to Rakhi in Pakistan two years ago, and was supposed to get married on June 28. But then the Pahalgam killings happened and the govt closed the borders, leaving all these marriages postponed indefinitely. Fourth-generation immigrants from Sindh, the Motiyani family had found a match for Mukesh in Pakistan through a common acquaintance. A similar link to Pakistan runs through numerous Sindhi families. The Sindh-Hindi Panchayat, a community NGO, has a thick file with documents of cross-border brides now unable to join their spouses in India. The organisation has compiled the documents of nearly 50 such cases. The govt order to close the borders with Pakistan after the Pahalgam killings has left these Hindu couples separated. The NGO plans to submit a memorandum with the papers to the Union home ministry. These will include the girls' passports and even visa applications for coming to India. A special permission will be sought for granting them a visa. "We would be requesting that, if needed, only brides should be allowed to come down, without the entire entourage. Visas will be sought for four cities like Nagpur, Raipur, Mumbai, and Pune, where the families belong," Rajesh Jhambia, the Panchayat secretary, told TOI. Tired of too many ads? go ad free now Apart from the would-be brides, there are some families too that have been separated. Sagar Panjwani, a Pakistani citizen who now lives in India on a long-term visa (LTV), got married in 2017, but his wife is in Pakistan now. "After staying in India for two years, she preferred to go back. Finally, my wife is ready to come back to Nagpur, but her visa applications were rejected twice. Now, the borders have been closed," he says. If Panjwani exits, he would have to permanently leave India, which he doesn't want. A man in his sixties stood with the papers of his would-be daughter-in-law. "We want her to come down at the earliest. I heard that two girls in the neighbourhood were converted recently. It's better that she comes to India and gets married soon," he said, requesting anonymity. The engagement happened over a year ago, and the family had returned to India, he said. In cases of cross-border marriages, the families prefer to leave a cap of one or two years between the wedding and engagement. This is done considering the time need to get a visa, explain the families. "The tradition in the community is that it's the bride's family that travels to the groom's place for the marriage. That is the reason many grooms have returned to India after engagement and are now waiting for their brides," explained Motiyani. The grooms include Indian citizens and even Pakistanis living on LTV, hoping to permanently settle in India. The families prefer to get their girls married to homes in India, where they find better prospects, they say. A Muslim couple, Mohhammed Abbas from Jaunpur and Andaleep, who solemnised an online nikah before Pahalgam too remain separated, says his cousin Kashif Naqvi, who helps Muslim immigrants with their visa formalities.
