nForce
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the problem is that Indian economy is heavily dependent on selling raw materials; the amount of high tech in India is actually quite low and there are too many lowly educated people in India, and too high poverty. As of now, and I am going to say this with total honesty, there are many cities in India that have not caught up to 1930's Shanghai due to very high corruption and lack of organization.
Let me just give you some examples. Even in the 1980's, when we were poorer than India, all of our cities had running water and sewers, designed by Chinese engineers, many of which who were trained in Germany and the Soviet Union, and constructed in the 1950's. These were so good, some of the systems from 1950 are still operational today with no major changes. Even 30 years ago, we didn't have blackouts, but had electricity rationing instead. We have trash collection service. Despite our poverty, 20 years ago our literacy rate was already higher than India's TODAY, and our starvation rate was near zero.
It is not just about the money but it is about how the money is used.
Let me assure you it is not the infrastructure of the Tier 1,2,3 cities that I am worried about.They are doing fine.It will be an extravagant attempt to compare with Shanghai in 1930 and that too on the basis of running water and sewer.We have the concept of Townships,meaning smaller towns within big cities,and I would say the standard of living and the cost is better in 2nd tier cities like Pune or Mysore than,say Mumbai.
I am more worried about reaching out to the masses in far lying areas and provide them public services,bringing them to the mainstream.The government has taken many ambitious projects to address that issue and the budget goes on increasing by leaps each year.
The problem is,there is a gap between people at different sections of the society.While some have all the facilities that they can ask for,some have bare minimum or almost none.
Apart from that,allow me to make a few things clear.Our economy is mainly based on the internal market.We have a huge population with growing levels of income,and hence a huge internal market.So far as export is concerned,we do export everything starting from a pin to agricultural products,FMCG,automobiles,softwares,electronic goods etc.
We dont have any problem with educated people for work as well.Again the huge population comes to the rescue.
Organizations skills,yes,little lacking there,but then much better than the 80s or early 90s.
China is a huge exporter of electronics goods,many US-based companies have their production centers in China.That should be our next objective.There are some recent developments on that field too.Indian mobile manufacturers are doing well these days,and acquisitions are back to the front page again.