A rendezvous with the Fin Min...

What is India?
1. Second largest and fastest growing Economy after China.
2. Growth Rate over 7 percent over the past few years,
3. About 70 percent of the population below 35 years of age and 50 percent below 25 years of age.
4. India has a growing middle class with more than 250 million.
5. Among the world’s largest energy consumers.

When and Why did India liberalize at all?
In the early 90's, during the Narsimha Rao governance, when our current PM was the Finance Minister and Our current FM was the commerce minister.
1. India faced a financial crisis at that point in time, a crisis of the balance of payments.
2. Basically, a combination of the right people at the right positions at the right time. Individuals who understood the economy to put the fundamentals strong.

What is the history of the Indian Economy's growth saga?
1. India has had an average growth rate of 6.5 percent in the post liberalization period.
2. We have had phases when we have recorded more than 7.5 percent growth like during mid 90's and post 2003.
3. On a provident perspective a minimum of 7 percent growth should be recorded, with a target of 8 percent to be optimistic. Then we can have an average growth of 7.7 percent for the next 15 years.

What is India's Economic position globally?
1. USA
2. China
3. India / Japan

In the next 50 years, China would be a very important determinant of India's global position and on whether India has to become the largest economy of the world.

India has to work on the below metrics to be an economic superpower:
1. Per Capita Income:
A key factor and a challenge faced by the Indian Economy. The reason that raising the per capita income in India and China is a challenge because of the population of both the countries. This is the cause why the growth of PCI will not be as rapid as a less populous country like the USA.

2. Purchasing Power Parity:
This is again a challenge as the PPP of India and China when multiplied by a factor of 4 or 5 equals that of the USA.

The worry of the Indian Economy - Poverty - How to Deal with it?
1. Continue to grow at a rate of 7 to 8 percent each year.
2. Produce surplus that helps us deal with poverty.
3. Increase the Per Capita Income of the country.
4. Focus on basic needs like Education, Sanitation, Roads, Healthcare, etc.

What role does Energy play in the growth of the Indian Economy?
Very significant Role:
1. Increase the generation capacity by 10000 MW each tear for the next 10-15 years.
2. This would lead to the growth in the Infrastructure.
3. In the present scenario, Only India and China have investment opportunities in the Energy sector in the next 10 - 15 years.

Characteristics of Indian Economy?
Strengths:
1. Human Resources - India produces more graduates than a country like US.
2. Size of working population and age would continue to increase for the next 20 years before it starts to decline. This is an advantage that China does not have.
3. India is a democracy and no views are stifled in the country.

Challenges:
1. Financial Resources.
2. Infrastructure.
3. Poverty - Create Jobs - Provide education - Investments.

Key Determinants:
1. Investments (FDI and FII).
2. Direct Investments to Infrastructure.


100 days of paid employment in villages. Why?
It is a safety net that is provided to the agricultural workers. It’s a plan to avoid and minimize the suicide rates in the country. This is done in view that 250 million in our country earn less than 1 USD a day.

Can India work with Pakistan?
It certainly has initiated the process:
1. it’s on the list of most favored nation and does not discriminate Pakistan on any account.
2. India is willing to export products and services to Pakistan.
3. India is ready to comply with the trade agreement between the two nations.
4. India is in favor is resumption of Bus and Rail link to Pakistan.
While Pakistan in turn does not reciprocate in a manner congenial to harmonial relations.

With Iran?
1. There are differences with Iran on the nuclear issues.
2. Iran must comply with the international obligations (Nuclear Proliferation Treaty).

What is India's stand on the Nuclear Energy?
1. Every country has the right to access Nuclear energy, but only for civilian purposes.
2. Nuclear power is the possible solution to the growing global energy demands as fossil fuels are exhausted. France and Japan already depend on Nuclear power.
3. Too many counties should not have abundant access to nuclear power as the risk of misuse of nuclear power is always there.

India's stand on Oil prices?
1. Oil prices are outrageous at this moment and it impoverishes the oil importing developing nations. Even the developed nations are feeling the pinch.
2. The objective seems to impoverish the importing nations, very similar to colonial regimes.
3. A gap has been created between the supply and demand by putting a cap on the amount of oil being exported. The only motive is to make super profit.
4. The intention should be to make sustainable profits in the current supply demand scenario. Oil prices should be profitable and not exploitable to importers.
5. Investment on newer oil production techniques and exploration should increase.

Are we witnessing a shift of Power: US --> Asia?
1. No, US still is the worlds leading economy.
2. The European Union also leads when seen collectively.
3. Japan lead the pact in Asia before India and China opened up.
4. If US, Europe, China, India and Japan all become superpowers, we would witness the development of mankind as 4/7th of the world's population would be on the prosperous side.
5. This would also enable centers like Brazil, South Africa, etc. to emerge as potential power centers.

Brighter side of the Indian Population?
1. It will consume more and produce more.
2. 20 years from now, the Indian workforce strength will be 800 million.
3. One of seven on earth is an Indian.

Indo - US Relations?
1. At its best, two way trade has increased like never before.
2. American work is being outsourced to India due to cost and skill parameters.
3. If outsourcing is stopped, the import of Indian goods and services will increase and immigration to US will increase.
4. US is also doing Indian research. Patenting, design, etc. mainly due to skill factors. So, a growing India outsourcers work to the US in a way.

Difference between Chinese and Indian Economy?
1. Chinese economy is driven by foreign investment, while the Indian economy is driven by Domestic demand.
2. Exports play a very major role in the Chinese economy while it plays a marginal role in the Indian economy.
3. China is a manufacturing hub, India not so. While, when FDI is taken into account, India's a better bet.

Indian Telecom Sector?
1. 50 percent growth of cell phone users.
2. By the next two years, we'll have 250 million telephone users.

India's growing sectors?
1. Roads
2. Power
3. Exports and Imports
4. Bank Credits.

Is India secular in the true sense?
1. India has the second largest Islam population in the world, after Indonesia.
2. People trigger speeches and offensive writings provoking disharmony.
3. Commonality exists between religions across states like Tamil Nadu, West Bengal, Uttar Pradesh, etc.

Science in India?
1. Huge number of scientists sent to other countries.
2. Facilities and research opportunities better in some other countries.

AIDS in India?
1. The threat of AIDS in India has been accepted, we were in the denial mode previously.
2. National AIDS Control Organization has been formed for the betterment of the situation.
3. AIDS discussions should be transparent and people should be made aware of the consequences.
4. Voluntary help efforts are required.
5. Public health expenses for AIDS have been increased.