Another change is the new tax-slab.20% is now till Rs 5 lac from Rs 3 lac.Unfortunately, not more than couple of million people will benefit from this new slab, a completely unnecessary exercise.It will save around Rs 60,000 /- for me, but I think I dont need this saving at this point of time, which could have been utilized in fighting alarming rate of food inflation.
The govt says that it will act as enabler and not directly involve in producing goods.Now how can one become an enabler-
a. By improving infrastructure : Gramin infrastructure needs to be improved a lot, whether its gramin sadak or rural electrification or water.Nothing has been mentioned to boost the infrastructure in rural areas in this budget.We need to remember that 2/3rd of India is in villages and in farming.Unless rural India develops, we cant become a developed nation.
b. By bringing new reforms : New reforms will spawn the creation of innovative industry, helping in creation of sustainable jobs. Reform in Telecomm saw creation of millions of direct/indirect jobs, an innovative industry for India.
I think Retail reform is very badly needed.Look what Walmart has done to China.Initially there was lot of protest even in China, but the chinese economy has benefitted a lot from opening up the sector.Walmart rakes in $ 1.8 b from chinese economy but procures stuff worth $ 3b from the local market, thus contributing $ 1.2 b net earning to their economy.And it has helped in creating lot of manufacturing industries and sustainable employment.
India too need Retail reform.Todays malls are very inefficient, selling things at exorbiant rates.Its like how telecomm was initially.I remember Bharti charging as much as Rs 18 for outgoing and Rs 9 for incoming.But with opening up of the sector and competition hotting up , now its 1paisa/sec.Manufacturing sector is completely missing in India.Services sector has provided employment to over 3 million people mostly in cities.Its not enough, we are 1140 million country.Retail sector can boost the creation of manufacturing small scale industries and farming .Govt needs to open it if it wants to act as enabler.
Land Acquisition : Most of the manufacturing industries are not able to take off because of land acquisition issues.Posco is struggling for last 10 yrs though if realised the 10 million tonne steel plant will create a entire new city, will bring development closer to villages and help decongest our cities.The infrastructure in Metros is crumbling under extreme pressure from alarming rate of population increment, we need to ugently create more than 100 new cities.The new proposed manufacturing industries should get realized soon.Heard about half-a-dozen proposal of setting up steel factory has been approved.Govt should take Land Acquisition bill on priority so that we move up in manufacturing & also new cities are created.
