Indian Economy

Policy Writer: Naya Yug |

India’s diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Services are the major source of economic growth, accounting for more than half of India’s output with less than one third of its labor force. About three-fifths of the work force is in agriculture.

• Section 2.1 - India should implement an economic reform program that includes developing basic infrastructure to improve the lives of the rural poor and boost economic performance.
• Section 2.2 - India should continue to encourage higher limits on foreign direct investment were permitted in a few key sectors, such as telecommunications.
• Section 2.3 - Tariff spikes should be maintained in sensitive categories, including agriculture.
• Section 2.4 - Privatization of government-owned enterprises should not be encouraged.
• Section 2.5 - The economy should continue to maintain an average growth rate of more than 7%.
• Section 2.6 - India should focus on reducing poverty by about 10 percentage points.
• Section 2.7 - Economic expansion should continue to make progress in reducing India’s federal fiscal deficit.
• Section 2.8 - We have to balance the National budget. Our Revenues are $141.8 billion, but our
  expenditures are $178.3 billion (2007 est.).
• Section 2.9 - We have to control our government’s expenses. Our expenditures are much above our revenues.
• Section 2.10 - We have to reduce our public debt, which is equal to 58% of GDP (federal and state debt combined) (2007 est.).
• Section 2.11 - Improve our Current account balance, which is -$19.35 billion (2007 est.).
• Section 2.12 - Improve our Exports, which are currently at $150.8 billion f.o.b. (2007 est.).
• Section 2.13 - Improve our Imports, which are currently at $230.2 billion f.o.b. (2007 est.).
• Section 2.14 - Reduce our dependencies on foreign oil and natural gas. Build more energy efficient system.
• Section 2.15 - Reduce our external debt, which is currently at $148.1 billion (31 December 2007).
• Section 2.16 - We need to encourage both men and women to work towards raising the economic standards. Currently our main workers are only 30.4% of eligible workforce. About 54.9% of
  eligible males and 85.3% of eligible females are not contributing towards our total workforce. We have Marginal Workers equal to 8.7%. Out of which 6.6% are men and 11% are women.
• Section 2.17 - Enforce the implementation of Bharat Nirman business plan.
• Section 2.18 - To upgrade rural infrastructure, the Government of India should maintain a time-bound business plan under Bharat Nirman.
• Section 2.19 - Provide road connections to +38,484 villages above 1000 population and all 20,867 habitations above 500 population in hilly and tribal areas.
• Section 2.20 - Provide telephone connection to 66,822 number of villages without a telephone and replace presently dysfunctional systems.
• Section 2.21 - Create 1 crore hectare of irrigation potential. 6 million hectare from major and medium projects, 3 million hectare for ground water development and 1 million hectare for minor irrigation projects.
• Section 2.22 - Cover of 55,067 uncovered habitations. Provide additional coverage to 2.8 lakh habitations that have slipped back from full coverage. Provide potable water in 2,16,968 villages affected by poor water quality.
• Section 2.23 - Provide 60 lakh houses at the rate of 15 lakh houses each year to be built by funds allocated to the homeless through Panchayats.
• Section 2.24 - Provide electricity to 1,25,000 villages by grid based supply or in remote and inaccessible areas through alternative technologies.

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