Some might not know, but India is making a move up in the global economy, and the country has the potential to grow much more than most people know. In the last year, India was able to surpass China as the fastest growing large economy in the entire world. They are home to a huge population that has the potential to have a mighty economic footprint, but they are still small when compared to economic leaders the European Union, China, and the United States.
In order for India to produce economic growth at a higher rate, they need to take some lessons from other economies around the globe. For starters, they need to set up a system of regulations that works to boost all stakeholders instead of the current top down system they employ. While most countries use regulations to gain wanted outputs, India is different because they use these regulations as personal tools to fit their personal agendas. This selfish mentality greatly limits the overall wealth of the country with a lack of job creation, economic growth, environmental causes and even social life within the country.
India should look to other countries for guidance in this area. The United States, as a prime example, has a blustering economy because the US Government creates and uses regulations that can improve the overall economic well being of the majority of the country. Most regulations are meant to improve economic activity, which would be a huge boost if similar agendas were used in India.
In short, there are really three key areas that India needs to focus on to improve their financial status. India needs to focus on approaching regulations by using the viewpoints of the government, the people and the people who have a stake in the financial gains and losses. This collaborative approach allows for a more well rounded viewpoint and regulations that have a more overall affect on all of the people. India should also asses the impact on all rules and deals to decide if the trade off for each item is worth the costs and terms on the table. Currently only their proposing agencies make the evaluations which presents a major conflict of interest and can often lead to bad deals. Finally, each agency should have authority over certain sectors with no overlap. this really only causes confusion as well as excess cost. Agencies should have their own areas of expertise at different levels to avoid confusion, wasted time, and most importantly, wasted money. For a more detailed outline of each approach as well as examples of areas that need improvement, check out this article at the Huffington Post.
While India has a ways to go, it is clear that they have stepped up and taken a position in the global economy, intent on trying to move up in the food chain. If they choose to follow some key steps an implement key strategies, they have all the tools necessary to do the job. It is within reason to expect to see the country become a more prominent economic player around the globe in the very near future.