The July figure for industrial production at 4.2 per cent, an increase over the pre-revised June figure of 3.8 per cent, is yet another signal for the government to keep up the momentum of essential executive and administrative reforms started last week. The IIP growth is in petty fractions and this is not expected of the Modi government’s vision of development and good governance where the latter is very feeble.
One cannot happen without the other, and certainly not in piecemeal fashion. The most important ingredient for significant growth is the ease of doing business, which could be a game-changer and toss out the present fraction-oriented growth of IIP numbers. A change in the business environment is necessary if the flagship “Make-in-India” initiative is to succeed. Several business delegations from different parts of the world are flocking to India to be part of the “Make-in-India” initiative. The chief ministers should quit touring the globe for investment and instead set their house in order so that an easy business environment is in place before the businesses are set up.
The ease of doing business strategy should be implemented on the scale and urgency of the Prime Minister’s Jan Dhan Yojna and Swachchh Bharat programme for it to be effective and to get bureaucrats out of their lackadaisical ways. Delays only lead to greasing of palms to get files moving. There will be accountability if bureaucrats are given targets for this initiative. The promised digital initiative can bring in the transparency required whilst curbing corruption.
