Will the Golden Bird shine again?
Reviewed by B. B. Goel

Turn Around India 
by R.P. Gupta.
Himalaya. Pages 345

Core value of democratic governance is inclusiveness, wherein government institutions and policies can accelerate development. India faces an uphill task of creating an environment to bridge the gap between rich and poor. The book provides testimony to the government’s failure on the economic front. Arguing that business alone drives economic growth, optimism surfaces given political and administrative will and empowerment is the byproduct of responsibility, India can turn around to be the world’s best bet in the growth market.

The shine of Indian economy as ‘Golden Bird’ has been lost due to unprecedented trade deficit, inflation, negative activism, regulatory regime, corruption, etc. Author rightly suggests change of mindset, aggressive reforms and the right investment climate to place economy in the fast forward mode. He denounces mistrust on the premise that if a person is pro-private capital, he is corrupt. He repeatedly stresses for inclusive governance and fixing of growth targets in team spirit with states of India.

Gupta defends global crisis as the turning point to re-establish credentials of Indian market, although adverse sentiments, media hype, low growth and fiscal deficit have led to downtrends. Besides fiscal expansion through consumption, subsidies and loan waivers at the expense of infrastructure spending has halted momentum. Discarding regulators’ approach of fault finding and artificial shortages, productive use of natural resources is recommended. As votary for striking a balance between growth and environmental concerns, author treats existing laws more as hidden industrial licenses than exercising control.

Gupta gives a clarion call for an integrated approach to energy policy. Suggestions to inject competition into monopoly syndrome, subsidies to targeted beneficiaries, import restrictions, and rational pricing synchronised with Modi’s roadmap, to avoid populist policies with energy economics, are a part of the book. In transport sector, massive connectivity for economic activities and mobility to public is key agenda and can be pursued by unlocking hidden potentials of railways, inhabitation adjoining rural and urban roads, modernisation of seaports and airports, etc.

Similarly, manufacturing and external sector has taken a back seat. Outmoded environment, labor and land legislations, increasing imports, ballooning trade deficit, worsening export of services, weakening of rupee and unnecessarily passing buck on the global slowdown are cited as major concerns. Although black money affects moral fabric of the country, author criticises those quoting astronomical figures to capture power. Further, inflation can be tamed by instituting separate index for agro inputs and manufacturing sector, pruning subsidies, promoting investment led spending and creating demand.

Pleading to consume more, save more and invest more, Government should promote financial products for savings, discourage gold deposits, and channelise savings for investment. Judicious utilisation of public finance, moderating interest costs and debt payments, implementing GST, rationalising taxes, etc. deserve prompt implementation.

Some of his suggestions are however questionable. These include: Empowering local self-government as illusionary, bringing dollar equivalent to Rs 35, FRBM provisions losing relevancy, revising perks of public representatives, taking care of political expenses; having one more regulatory body (Lokpal) in reducing corruption etc. Overall, Gupta seems to be in agreement with Jaitley’s observations that there is no contradiction between being pro-business and pro-poor. He deserves appreciation for brilliantly focusing on all sensitive issues under one roof to ‘turn around India’ for better days ahead.

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