ON THE INDUSTRY:
Whereas the government is rolling out various initiatives for bridging the digital divide between urban and rural areas, I believe more specific initiatives are required to enable higher penetration of PCs in the rural markets.
Many decades ago Banks had a directive for disbursing loans to farmers for agricultural pumpsets. Some similar policy should be followed for giving loans at concessional rate of interest to purchase computers and other accessories /peripherals. Subsidy for solar power and storage devices in rural areas would also accelerate computer penetration.
Some fiscal and policy initiatives are required for promoting local manufacturing of Information Communication Technology and Electronics Hardware, Mobile Phones and components.
Procedural simplifications in various financial acts with a view to reducing transaction costs need to be addressed. To take full advantage of the knowledge economy bias, Government needs to review the scope for R & D activities in India holistically and announce a policy to make India a global hub for R & D and also foster more innovative research by Indian scientists and engineers. One hopes that the FM will announce some innovative measures in the above areas.
ON THE ECONOMY/COUNTRY:
The present indicators for growth in manufacturing, services, and agricultural output seem to herald a buoyant economy in 2011-12. As the buying power is increasing, priority attention is required to address the supply chain deficiencies and productivity improvements in food grain, farm produce and milk. These are major pain areas for the average citizen and the cause for high inflation. A fresh look at FDI in Multi Brand Retail can help in lowering prices for the consumers and increasing revenue in the hands of the rural producers.
Our trade with China has multiplied manifold; we need to introduce direct trading in Yuan rather than go through the US dollar. On a broader scale we can think of trading in Rupees with some countries. With USD 300 billion in reserves, it is time for the Government to announce a road map for full convertibility.
