Chapitre 7: Internal economic implementation and development
Chapter 7: Internal Economic Implementation and Development (Part 1 of 6)
Animesh sat in his office, the pressure of the previous meetings heavy on his mind. Discussions with those ministers, the President, and even foreign diplomats had centered around the same point.
India's economy needed revitalization. The 1991 economic reforms had opened the country to the world, but if you look over the reports scattered across his desk, it became clear that five years later, many issues remained unresolved. Now, the responsibility of addressing these problems was placed on his shoulders.
He sighed, rubbing his forehead in the tension, as he thought of the long plan ahead. Implementing economic reforms wasn't just a matter of drafting policies, if you want you can; however it required balancing act between political interests, public perception, and the harsh realities of India's socio-economic landscape.
Animesh glanced at the clock. It was nearly 11 AM. In just a few minutes, he has to go to meeting with his core team of economic advisors to finalize the first wave of reforms he intended to implement. These reforms were critical, and he must implement it to grow the sector.
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As Animesh entered the cabinet room, the cabinet room was silent as the ministers settled into their seats. Finance Minister Rao, Commerce Minister Suresh Mehta, and the Minister of Rural Development, Rajesh Patel, sat nearest to Animesh, their faces has concern. After all, this meeting wasn't just about policy, but rather implementing it to the ground level.
Animesh spoke, his voice calm but domineering, "its time to take, some bold steps for our country. The reforms of 1991 were crucial, but we have to acknowledge that we've hit a plateau. Our growth is steady but not fast enough, and we still have millions of people living in poverty. Our aim is to, improve the country economy and, people living conditions and health, all this came with money."
He paused, letting them time, to understand over the words of his.
"We had five years to observe the impact of liberalization, but now it's time to move forward with structural changes. The first sector I want us to focus on is agriculture."
Rural Development Minister Rajesh Patel nodded in agreement. "Agriculture is the backbone of our economy, Prime Minister. More than 60% of our population is still dependent on farming. If we can modernize this sector, it would have a ripple effect across the country."
Animesh leaned forward. "Exactly. But modernization doesn't just mean new technology. It means access to credit, better infrastructure, and support for small-scale farmers. The problem is that right now, too many farmers are struggling to get by. We need to make it easier for them to succeed."
Rajesh Patel opened a folder in front of him and pointed to a detailed map of India. "We've identified several regions where agricultural productivity is far below its potential, primarily due to poor irrigation systems and lack of access to markets. If we can improve these, we'll see immediate results."
Animesh nodded. "What's the plan, let me see it."
Rajesh Patel looked at the files, while clearing his throat. "First, we should propose a national irrigation development program. The idea is to construct and rehabilitate canals, reservoirs, and wells in the most under-served areas. This will directly increase crop yields in regions that have been struggling with water shortages."
Finance Minister Rao interjected. "That's going to require a huge amount of investment, Prime Minister. We're looking at several hundred crores (milliona of dollar) at the very least."
Animesh didn't flinch. "We'll find the funds. Agriculture is too important to ignore, and if we're serious about development, we need to put our money where our mouth is. What else?"
Patel continued, "We're also proposing to introduce a program for farmer cooperatives. This will allow small-scale farmers to pool their resources—buying seeds, fertilizers, and equipment collectively—while also giving them better bargaining power when selling their crops."
Commerce Minister Suresh Mehta leaned forward, his brow furrowed. "That's a good idea, but we also need to make sure the infrastructure is there to support these cooperatives. It's not just about growing more crops—it's about getting those crops to market in a timely manner. Right now, our roads and transportation systems are inadequate in many rural areas."
Animesh nodded. "So, we'll need to invest in rural infrastructure as well. Roads, storage facilities, transportation networks. This isn't just about agriculture; it's about the entire supply chain."
Rao spoke up again. "There's another challenge we need to consider: access to credit. Many farmers are still dependent on informal moneylenders who charge exorbitant interest rates. We need to expand the reach of rural banks and make it easier for farmers to access affordable loans."
Animesh tapped his fingers on the table, thinking. "We'll have to work closely with the banks on that. Perhaps we can incentivize them to extend more loans to farmers. But we also need to make sure the loans are structured in a way that doesn't trap farmers in debt."
Patel agreed. "Exactly. We need a system where farmers can repay their loans based on their crop cycles, not on arbitrary deadlines. That way, they can focus on growing their business rather than worrying about immediate repayment."
Animesh sat back in his chair, a slight smile on his face. "This is good. But let's not forget the bigger picture. Agriculture is just one part of the puzzle. We also need to focus on industry and manufacturing."
Suresh Mehta cleared his throat. "Prime Minister, on that front, I've been in discussions with some foreign investors. They're interested in setting up manufacturing plants in India, particularly in sectors like automobiles and electronics. But they're concerned about the bureaucratic red tape and the high corporate tax rates."
Animesh's face darkened slightly. He had expected this. "What kind of tax incentives are we offering right now?"
"Right now, foreign companies are taxed at 30%," Mehta replied. "That's on the higher side compared to other emerging economies. If we want to attract more foreign investment, we'll need to reduce that, or at least offer tax breaks for the first few years."
Animesh thought for a moment. "How about this: we reduce the tax rate for new foreign investments to 20% for the first five years. After that, it will gradually increase to the standard rate. That gives them an incentive to invest, but also ensures that we're not missing out on long-term revenue."
Rao frowned. "That's going to cut into our tax revenue, Prime Minister."
Animesh leaned forward, his tone firm. "Short-term losses for long-term gains. If we can attract major companies to set up shop here, the jobs and economic activity they create will more than make up for the lower tax rate. We have to think big."
Mehta nodded in agreement. "I think that could work, especially if we combine it with efforts to improve our infrastructure. If companies see that India is serious about becoming a manufacturing hub, they'll be more willing to invest."
Animesh looked around the room, sensing the momentum building. "Good. Let's make that part of our next budget proposal. Now, let's talk about small and medium enterprises. We can't rely solely on foreign investment—we need to support our own industries as well."
Rao spoke up again. "Small and medium enterprises (SMEs) are the backbone of our economy, Prime Minister, but many of them are struggling. They face difficulties in accessing credit, dealing with bureaucratic delays, and competing with larger companies."
Animesh nodded. "We need to create a more business-friendly environment for SMEs. That means cutting red tape, simplifying the process of starting a business, and offering tax incentives for small businesses."
Patel chimed in. "We should also provide technical and financial support for SMEs looking to modernize their operations. Many of them are still using outdated equipment and methods, which makes it harder for them to compete in the global market."
Animesh agreed. "Let's create a fund specifically for that purpose—a modernization fund that SMEs can access to upgrade their equipment and processes. We can work with the banks to provide low-interest loans for these businesses."
Animesh knew that this was just the beginning, and if you want at the ground level, it is too hard. Implementing these reforms would be a massive undertaking, and there would be obstacles along the way. Political opposition, bureaucratic inertia, and even public skepticism would all have to be navigated.
"Alright, let's get to work," Animesh said, standing up. "This is just the first step for the greater time. We'll meet again in a week to finalize the details, but for now, start putting these plans into motion. We don't have time to waste."
As the ministers filed out of the room, Animesh remained behind, staring out the window at the sprawling city below.
État de l’alimentation hebdomadaire
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