Friday, June 3, 2011

government should prioritize funds priority sectors

Government  should prioritize funds   for spending priority sectors  for improvement of gross domestic product

India investing millions towards higher education and need to double its education in budget to improve  employment conditions in India. India’s improved education system often cited as one of main contributors to economic rise of India. Much of progress  specially higher education scientific research has been credited to various public institutions. The private education in India merely 5 % in terms of value expected is estimated to be worth 40 billion dollars in 2008 and will increase 68 billion dollars by 2012.
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Employment generation is the important obligation of government. Present minimum salary ordinary graduate  draw from private sector  employer is of RS 10,000per month . The salary depend upon different areas in country. Only engineering graduate will draw a salary of 30,000 initially from information & technology  sector depend upon his skills. Presently I& T  sectors are paying maximum salaries up to their employees about Rs  10,00000 above and attracting maximum talented computer science engineers  Whereas 11M  MBA graduates passed out from reputed institutes draws salary ranging from RS 50000 -10,000 00 per month depending on grades and his experience and skills.

MBA graduates passed from ordinary university get salary of Rs 20,000 per month that too  without job security in private sector who want accountability of job from day of joining . Unless MBA or engineering graduate is to be trained and allowed pursue job goals 2 to 3 years it is not wise simply terminating graduates and MBAs without giving exposure to technology and market.

Government should invest in rural housing, and irrigation projects and improve conditions rural farmers who depend on agriculture and horticulture products for better living conditions economically.

Liberalized loans  issuing for setting up small and medium industries at low interest rates ’including loans special category like solar power and wind power for reducing global gas emissions.

The process of globalization of Indian economy is irreversible and opening of Indian economy has to be managed in manner so as to derive maximum benefits from world markets . The process should be strengthen the potential industries to compete efficiently in world markets including increasing volume of sales.

Export,  agriculture and G.D.P 

India shipped 245.9 billion dollars of goods to other countries during year 2010-2011.This is best export performance of India so far.

If you look agriculture sector and allied sectors showed a marked improvement by registering 6.6. Percent growth in 2010-2011 against 0.4 percent in previous fiscal helped by record food grain production of 235.88 million tons.

The country’s economy expanded 7.8 % in January -March quarter its slowest pace in five quarters as industrial and manufacturing sector growth moderated due to rising interest rates which effected demand

Growth for the year 2010-2011 fiscal year stood at 8.5%  a shade below the government previous estimate of 8.6%. The 7.8 % growth in January -March  quarter  was lower than the 8.3 % in previous quarter


To improve employment opportunities to unemployed government should heavily invest in developing  infrastructure for power generation , roads , railway lines , bridges  which essential for industrial development.

We read  in news paper   that Reliance industries M.D. Mukesh Ambani constructed house in Mumbai by spending un hefty amount for his personnel comfort . Is this expenditure  is justified when people in Mumbai sleeps in pavements without food ? Even  I see families of  poor without even ration card or a shelter and eagerly waiting where to get their next meal. 

Some details about education

Even  in 2008 India produced  3.5 lakhs ( 350 thousand ) engineers. However raw numbers don’t tell entire story. When it comes to number engineers per million people, they are 214  engineers in India, compared 1435 in South Korea and 765 in Japan. Of course this not at tall surprising given that percentage of secondary and higher secondary pass outs in India is also significantly lower than in other developed nations. The real worrying statistics is that  the event the event after one year graduation 30 percent engineers in India remains un employment. According  to Wall Street journal 75 % technical graduates and more than 85 % general graduates un employable by India in high growth-global industries-this situation is so dire that leading IT services companies like Tata consultancy services, Infosys and Wipro have been forced to extend their initial training program for freshers in order to impart basic skills required on the job.

While pinning on the state of engineering  India most  pundits have ripped apart Indian education system. Right from gross root level Indian education system ignores all key facets of engineering expertise , curiosity, learning by experimental and problem solving. The explosion in the number of colleges handling B.Tech   degrees have resulted in dire shortage of qualified teachers.

However , the poor quality of education is not the sole reason for current situation in India . The driving factor is attitude of society. While U.S. students are comfortable taking up courses  Humanities and social studies, communication and media arts in India, more students are forced to believe to  real career option before these are to become doctor or engineer. In turn number of people joining in engineering. This increase in demand  of colleges has lead to increasing  in number of colleges, which in turn has lead to the lowering of bar. It is lure of an offer from TCS, Infosys  than  the attraction of building some thing motivates engineering students in India.

Literacy in India

Literacy in India is key for socio economic progress and India literacy rate grew to 74.04% from 12 % in the end of English rule in 1947. There is wide spread disparity in literacy in India. Effective literacy rate in 2011 were 82.14 % for men and 65.46 % for women  . The low female literacy rate has had  drastically negative impact on family planning and population stabilization efforts in India. This effects their employment opportunities

 Poverty in India

There has been no uniform measure of poverty in India. The planning commission  of India  has accepted the Tendulkar committee report which says that 37 % of people in India live below poverty line.

The Arjun Sen. Gupta report states that  77 % Indian live on less than RS 20 a day about 0.5 dollar per day while N.C. Saxena committee  reports  states that 50 %  of Indian  live below poverty line.

Since 1950, the Indian governments  and non governmental organizations have initiated several program to alleviate poverty, including subsidizing food and other necessities increased to loans ( education), improving agriculture techniques and price supports, and promoting education family planning. These measures have helped to eliminate famines cut poverty lines by more than half, and reduced illiteracy and malnutrition.

What are avenues before  government for improving G.D.P. by providing employment  opportunities and improving average conditions of people in India.
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. Provision of rural employment  land less poor who are dependent on agriculture . This program is under implementation in states.

.. Provision of jobs young untrained graduates while opening the retail sector to foreign investors and create retail jobs in super markets and big malls.

.. Marketing rural forest grown products from Geri Jan  co-operative societies  and allot forest land  to poor landless Geri Jan  youth by education them about marketing strategies.

  .. Encourage medical graduates to start self supported medical care centers in rural areas. Experienced NRI doctors  to set up super specialties hospital with government  and private participation. 

.. Liberalized loans  for engineers  to set up small and medium units with  sophisticated imported or indigenous technology liberally at low interest to meet competition global markets.

.. Improving already opened telecoms sector for creation of employment.

.. Construction of HVDC transmission lines and distribution  lines and completion of rural electrification projects which will  reduce transmission and distribution losses and also provide employment to engineers and technicians. India aims to generate 100,000 MW of power during next five year  plan period starting 2012. The power is essential  in venturing or starting more industries in India and also for overall growth of country.

.. Opening up all mines Aluminum, Copper, uranium, iron ore , coal ,zinc .lignite  and allow import and export and also essential requirement for our indigenous industries starting mining and refining  of  metal and also for  creating value added products and while  creating employment for  most qualified engineers to aware and under stand latest global technology methods and to improve Indian industry. 

.. Setting up most modern 111 stage nuclear reactors with French U.S. and Japan co-operation which will help importing light water reactors for reducing global warming on earth. 

.. Solar , wind power generation to be taken up large scale for reducing emissions of global house gases
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. Educational loans engineers and scientists for educating themselves   in abroad to acquire latest modern technologies like in space, missiles  Aero ,medical and also about  expertise about latest military equipments and also about special latest sophisticated weapons and ammunition.
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. Encourage engineers to develop import substitution products which will improve exports . Exports to be doubled  from 245.9 billion dollars which will improve  our gross domestic product.

.. Cotton industries to be set up in large scale to help farmers to get minimum support price, . An addition hand loom artisans will benefit if government provides loans to them for running their hand looms. 
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.Defense sector need qualified engineers to develop components and equipment for our military equipment .presently most of equipment is being imported since India has not having  expertise for manufacturing these equipment.. Defense sector will be a big scope for young entrepreneurs to work with and take challenges for technology development for import substitution.    . 
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