GLOBAL FINANCIAL DOWNTURN – OPPORTUNITY IN DIFFICULTY

Global Financial crisis has crippled literally every sectors of the world ranging from Manufacturing to Media. It is considered as one of the severest economic crisis in the world in past 70 years after the Great Depression in 1929. The financial horror has its roots in the deregulation of United States financial system in 1970s with focus on achieving wild growth rate. Because of Globalization, the US financial downturn has spread over most of the major economies of the world. But, our prudent Reserve Bank of India (RBI) with its remarkable, regulated, centralised financial system has well insulated our Indian economy from the vicissitudes of the world economy. We took pride in stating about the less influence of the crisis on our growth. But, multilateral sectors like trade and export, automobile manufacturing, tourism have faced the slump. For instance, World Bank predicts that world trade is expected to decelerate to 2.9 percent in 2009. Also, Our Indian economy gross domestic product (GDP) fell to 6.7 percent compared to previous year’s achievement of 9 percent. These tremors further leave influence in other sectors too. Though, US Government had announced bailout package of $700 billion to replenish US economy from recession, the responsibility of India to recover from its downturn is vested on us. Yet, we don’t hold the responsibility of causing it.
The great theoretical physicist, Albert Einstein says, “In the middle of difficulty lies opportunity.” With optimistic and growth-centred attitude, we can see economic crisis as an opportune time for India to recreate a perfect platform to bring its “Super-Power” dream into reality. With a dream of empowered India, we discuss various pivotal sectors which require special focus by striking it economically, technically, strategically and inclusively:

AGRICULTURE:
Agriculture and Agri-allied activities are life-line for most of the citizens of India. Nearly 65 - 70 percent of Indians depended on agriculture and related activities for their livelihood, but, it just contribute only 22 percent of GDP. India stands high in the parameters of irrigated land, but, its yield per hectare is at sub-standard level. To solve, the achievements of our Green Revolution during 1960s and 1970s have to be revived and we require another Green Revolution during current century to compete globally and to achieve the objectives of National Food Security Mission – to provide 25 kilograms of Rice or Wheat at Rs. 3 per kilogram for Below Poverty Line (BPL) citizens. We should make our Agriculturists and Researchers to learn the incredible achievements of Israel and Japan in farming industry. We have to show intense effort to introduce following measures in farming like SRI (System of Rice Intensification) technology, promotion of precision farming, micro-irrigation, restoration of soil health, supply of quality seeds to farmers, distribution of farm machineries, etc. for the betterment of farmers.

INDUSTRY:
Under current economical downturn situation, the industry has been affected the most, because of droop in trade and exports. Stimulus packages introduced by government should promote long-term investments along with the focus on short term goals. Long term activities include those like infrastructure development, training skilled workers, research and development, etc. Our investments in industry should strive to produce products which cause less strain on environment, biological friendly, recyclable etc. This has dual benefits: One, it helps in achievement of objectives placed by India before Copenhagen. Second, Eco-friendly products will enjoy less customs taxes in importing nations. Thus, it is helping in the blooming of trade and export of Indian state. Further, our government should follow special policies while importing bulk products from Industrial superpowers. Our import policy should insist the exporting foreign companies to procure at least 30 percent of their product’s components from native Indian companies. Such policies provide multinational partnership for lagging Indian industry sector and guides towards the birth of indigenous Indian technology.

SOCIAL SECTOR:
These are public goods to improve quality of life. The key social sector programmes needs to be concentrated are education, employment, urban poverty alleviation programme, rural health etc. Nearly 77% of Indian population are still vulnerable and deprived and our Human Development Indices are one of the lowest in the world. To eliminate poverty and satisfy vast social requirements, we require a sustained growth of at least 9 percent for next 25 years. If not dealt with urgency, the financial crisis turned economic crisis might lead to food crisis and cumulatively into security crisis. So, to recover and accomplish, we require shrewd planning of new policies in this humane sector which require vast investments, centralised control, accountability, and inclusiveness. Government over-conscious rural poverty elimination programme has failed to concentrate on urban poverty. The rise in urban poverty is fuelled by economic crisis compared to declining rural poverty. To rectify efficiently, the National Rural Employment Guarantee Act (NREGA) requires new amendments to make it inclusive for urban region also, while retaining its success in rural areas.
Our policy towards education should be revamped with Dr. Abdul Kalam’s educational attitude which strives for transforming less-competent students into super technocrats, imbibe character to uplift Below Poverty Line (BPL) people, and realign their religious thoughts into a spiritual one to achieve social harmony.
National Rural Health Mission (NRHM) which provides health insurance to all families Below Poverty Line (BPL) can be implemented in a fast manner. Thus, Primary Health Centres (PHC) can get advanced medical facilities without financial disparities through public-private partnership (PPP). We should provide better sanitary conditions and an improved microenvironment in the habitat and workplace.
In an environment of slowdown, we should initiate our action through public spending on development of basic infrastructure such as roads, bridges, power, ports and airports for urban and rural development which also revive the construction and allied industries. This will help to achieve 12 Million new work opportunities per annum and to manage growing unemployment in India side by side.

"If you have built castles in the air, your work need not be lost; that is where they should be. Now put the foundations under them," says Henry David Thoreau. Though, India’s past accomplishments may be without perfect foundations, but, we can utilise this opportunity to perfectly lay foundations below constructions as Thoreau says. Our current growth rate of 6.7 percent during 2008 – 09 has placed our economy at top notch in world ranking. While world super powers are crippling under crisis, India is rising against crisis. Our successes are being recognized, our accomplishments are being appreciated, our growth rate is viewed remarkable and world has created a gap to fill ourselves as super power India. To end, we imbibe in our thoughts and actions following words, “Strength of nation is in strength of people and strength of people breeds in his strength of mind. Bring the minds in unison to conquer the world with empowered India.”