What Are Some Of The Things That Need To Be Done To Revive The Economy

Revive economy is when a new phase of development and economic expansion after a period of crisis.

In other words, when something such as the economy, or business is revived or when it revives, it becomes active, or successful again. 

Below are some of the things that need to be done to revive the economy.

Stop Corruption

Corruption is a form of dishonesty or criminal offense undertaken by a person or organization entrusted with a position of authority, to acquire illicit benefit or abuse power for one’s private gain. Corruption may include many activities including bribery, embezzlement, and other illegal means of acquired power and wealth.

Education

Education is defined as the process of facilitating learning, or the acquisition of knowledge, skills, values, morals, beliefs, and habits. Educational methods include teaching, training, storytelling, discussion and directed research.

A country’s economy becomes more productive as the proportion of educated workers increases since educated workers can more efficiently carry out tasks that require literacy and critical thinking. However, obtaining a higher level of education also carries a cost. A country doesn’t have to provide an extensive network of colleges or universities to benefit from education; it can provide basic literacy programs and still see economic improvements.

Countries with a greater portion of their population attending and graduating from schools see faster economic growth than countries with less-educated workers. As a result, many countries provide funding for primary and secondary education to improve economic performance. In this sense, education is an investment in human capital, similar to an investment in better equipment.

India has nearly 74% of literates, in which only 30–40% of people are well educated. India should at least achieve 70% of well-educated literates. For this India should improve government schools and competition between these schools should build up.

Information Technology

Technology encompasses a huge body of knowledge and tools that ease the use of economic resources as a way to produce goods and services efficiently and innovatively. Technological progress is essential to economic growth and development, and the more advanced the technology available, the more quickly the local and global economy can improve.

So, India must promote innovation via research and development (R&D); upgrade the skills of the Indian IT workforce; improve access to long-term finance for Indian start-ups.

Policy reforms with respect to Businesses

Free market policy, minimum number of permits etc required to set up a business, in fact make the process of setting up businesses as short and simple as possible, do away with all the red tape, make land acquisition simpler and more hassle free.

All pricing, bidding, and contract award issues to be brought in public domain, a comprehensive administered price system the guidelines for which are also in public domain to be easily monitored by any, protectionism of Indian traders when they are in competition with foreign traders with cheaper capital unless technology transfer is offered.

Privatization of railways, privatization of most PSUs except those that are dealing with areas where strategic interests are involved.

Intervention and focus on setting up more manufacturing industries. In fact, it will be good if India can come up or forcibly occupy certain areas of manufacturing depending on her resource availability. For instance, countries like Sweden are known for shipbuilding and heavy machinery manufacturing or Germany is known for automobiles and chemicals etc.

This is something that the planners need to work out and start work immediately. Of course, India is much bigger so can specialize in many fields rather than just one, but the work should begin from one area and then the benefits combined with governmental efforts should spill into the others.

Basically, for India to be a global economic power the country must be a manufacturing hub rather than a services hub.

Allow FDI in the manufacturing sector with the aim of becoming technologically self-sufficient. Woo foreign companies with this sole aim in mind. This is a shorter route to reaching the same level as the developed nations as opposed to developing all the tech yourself.

Strengthen business relations with weaker or underdeveloped countries to gain markets for your industries. We need Bhutan, Nepal, Mayanmar etc as countries where our products dominate, and we can edge out the competition with the help of friendly relations with the Governments.

Policy reforms with respect to expenditure of Public Money

Remove all manners of concession on Gas, Petrol, Diesel etc and to compensate for that reduce taxes. All is not possible in one go so identify and mark out a progressive plan to do this.

Stop all freebie schemes. Any scheme which involves public distribution in cash or kind without work being taken in return should be stopped or at least phased out: FSB, Mid-day Meal, MNREGA etc. Schemes should be brought only with the view to generate assets like Roads, Housing etc.

Increase expenditure on Education for the young and the old as well; start social awareness programmes instead of wasting money in schemes to get votes.

Policy reforms with respect to Workers

Remove bureaucracy and government interference from all areas where private setups can function without National interests being jeopardized. Make the bureaucracy leaner, meaner and fitter; bring in corporate world like efficiency and work culture.

Reform the taxation system. Have a one-point tax instead of so many different taxes here and there. Preferably tax the expenditure of the people instead of their savings i.e., encourage more savings and discourage more expenditure.

Bring in rulings to reduce the nuisance created by worker unions etc although not at the cost of the exploitation of workers; have clear policies for working hours and pay per hour as in the Western countries.

Bring in Citizens Charter and E-governance to the maximum possible extent.

Policy reforms with respect to workers can lead to revive economy.

Electricity

Electricity is another major issue India residents and businesses face daily. For electricity consumption, India consumes 1,408,624,400,000 that number is 1,122 kWh per person of electricity per year.

The United States 3,911,000,000,000 kwh that is 12,700 kwh per person. India’s energy problems made global headlines when 600 million people were in the dark due to blackouts in 2012.

Low-cost manufacturers in Vietnam now offers lower production costs than India due to their cheaper and more reliable power supply to manufacturers.

Vietnam’s share in global ready-made garment exports increased from 1.7% to 5.3% in the past decade. India saw a plain 0.8%. India decreased in comparative advantage due to infrastructure bottlenecks and inferior logistics.

Therefore, for economy to be revive the country must have adequate power supply.

Above are the 7 things that need to be done to revive the economy of any country be it India or other nations that have an economic crisis.