Â Attention – Due To Allegations of Plagiarism, This Article Is Highly SuspectÂ
a scathing denouement, a group of intellectuals led by historian Sumit Sarkar who visited West Bengal’s Nandigram and Singur areas have stated categorically that the people of these areas were not consulted about the land acquisition programme. This indicates a clear disconnect between the ruling Left Front and its cadres – the rural masses of Bengal.
Indian agricultural productivity lags behind world standards by a factor of few times though it has some of the best climatic and land advantage than all the other major nations. If the production is too low, then the wastage (which goes as high as 90% for some products) kills whatever remaining and due to inefficient practices we are not growing more lucrative crops. As technology, infrastructure & organized retail growth, are looming, this sector could close in on the international productivity standards, and this means we can have over 300% growth in the end value of what we produce, given our potential. This might take over a decade, but still if we have a potential for 300%+ growth in India’s core sector in the long term, its effect on industrial consumption and Indian growth rate will grow exponentially.
As the article gets long & winding, I had to cut a lot of material and you could search online for each of the individual developments. The outcome it seems that, inspite of global slowdown India could maintain and increase growth, as the Indian core sector is starting from a very low base, and most of these developments can continue in spite of a weak world consumption, as they are based on domestic consumption that is again growing from world’s lowest per-capita. Though, India could possibly slow in the medium term, in the long term, it could easily maintain a 10%+ growth, as all these segments above can maintain a double to triple digit growth in the near future.
A world recession can also indirectly benefit India, when its hungry entrepreneurs can get value buy outs at cheaper prices (like how VSNL & Reliance boughtout world’s major telecom backbones like Tyco & FLAG). It would also hit upon the margins of international producers who might eye India for greater cost cutting, and Indian government would be more amenable to opening up to overcome the world recession. It would also make companies to look for the bigger & fast moving Indian market than the saturated world markets (like how Vodafone & Oracle are doing) and bring more investments. We benefitted from the American recession of 2001-02 (it increased outsourcing and cheapened telecom assets) and I guess we could now repeat the performance.