“Saare Jahan Se Acha Hindustan Hamara…………..”
These words unite millions of proud Indians. India, a nation of many religions, languages, customs and beliefs, may have its perils, but in them also lie its myriad opportunities. As we tap the means of realising any such opportunity, we have to realise that the land on which we tread is sacred. Criticism is no way to revere it.
Back from the time of the Indus Valley civilization, till the end of the British Era, Indians as one people have not shared the same destiny, although we may have come close to it during the times of the great emperors Ashoka and Akbar. Sharing destiny entails sharing responsibility. The ‘Indian Dream’ is a million acts of private daring put together and in many of us the dreams of 1947 passed down the generations are still alive. Somewhere deep down in the heart of every Indian is the hope of one day seeing India restored to its former glory.
The areas in which India lags behind today in core competence are agriculture and food processing , education, healthcare, information and communication technology, providing quality infrastructure, creating a culture of self reliance for critical technologies, minimising the rural – urban divide, improving our attitude and approach towards women and emphasis on national security.1 There is little dispute as to what needs to be done; the debate remains over the means to achieve and sustain such core competence.
‘Development’ in India is a term that is loosely used and followed and includes anything that constitutes a new stage in a changing situation. There is always a tendency to view development as an accumulation of capital instead of including factors like the emulation and assimilation of knowledge2. Whereas in practice, it is actually a multi-dimensional term, that is a composite of the degree of economic and social growth. One of the major challenges that India faces today is to ensure that the governance is matching pace with and is responsive to the needs of the people. In this regard, the records of the many governments, both in the state and at the centre, have been murky at best. In order to succeed, one of the essential features that any government today will need to imbibe is transparency in governance. Embracing a policy of transparency would go a long way in restoring the faith of the people which has been steadily diminishing down the years. Well formulated and sound policies which are not bogged down with provisions having retrospective applicability, which are not regressive policies, and not based on knee-jerk reactions and which are efficiently implemented, would surely go a long mile in boosting the development of India.
We take pride today in saying that we are one of the world’s fastest growing economies and one of the largest economies. Even post the financial crisis of 2009 the Indian economy has maintained a positive outlook. The large population base provides enough market demand to sustain industry and make the country attractive from an investment perspective.
“Innovation is the specific instrument of entrepreneurship. The act that endows resources with a new capacity to create wealth.”- Peter Drucker.
Indians are shining across fields all around the globe and yet our present international rank is low with respect to the ease of doing business and innovation. The government needs to invoke the entrepreneurial spirit of Indians by placing emphasis on new knowledge and innovation and framing a national policy for entrepreneurs.
India has a high ratio of shadow economy entrepreneurs to legitimate business.3 At present, they are beyond the purview of the government and hence belligerently flout labour laws as also various other laws and do not pay taxes. Should the government adopt policies that would encourage formalising such businesses, their transactions would result in a substantial amount accruing to the exchequer and improve social security for the entire nation. Further, the formalisation of these entrepreneurs is incumbent to ensure that they innovate, accumulate capital and invest in the economy for promoting economic growth.
What has troubled industry and investors alike has been the lack of consistency in the role and policy making, the exercise of discretion by the government and the lack of clarity regarding the rationale behind the rules apart from of course, their enforcement.
Despite the limitations imposed, we do possess an impressive array of basic laws that are equipped to tackle most situations. In many instances we have not updated or upgraded them to match the progress of time.5 However, there are also certain laws that are completely archaic and have not been amended to cover present business realities, or even practicality, thereby creating an environment of uncertainty and confusion.
For example land acquisition has been a very touchy subject in India. The availability of land for implementing various projects is a key aspect of development and is considered a stable means of investment. The land acquisitions in India were governed by the archaic Land Acquisition Act of 1894 which was expropriatory and conferred the state with wide powers that affected a person’s right over his property.6 There have been many well documented instances where the acquisition of land under the Act was not consistent with the concept of the Indian welfare state.
Sharing destinies is different from sharing backgrounds. What works for one state may not work for the other, and this may be true from region to region. Innovation and adapting of policies to suit the needs of each region would need a healthy stand adopted by the state governments in the case of land acquisition. For example in Gujarat, a state that has large tracts of non agricultural land8; has instituted an industry friendly process of land acquisition which is governed by the GIDC, a statutory corporation responsible for the acquisition of industrial estates.9 Any industry that was interested in setting up shop in Gujarat could approach the corporation for an allotment of land.10 The corporation has instituted a fair and transparent mechanism for the compensation of farmers and has given the state a competitive edge over the others with respect to attracting investments. A similar role has been played by the nodal agency in Karnataka through the creation of land banks through acquisition in anticipation of industrial demand.
“See no advantage of new clocks. They run no faster than the ones made 100 years ago.” Henry Ford.
Apart from laws affecting business, there have also been instances where social laws are drafted without giving much (or in some cases, any) thought to its consequenc- es. An apt example would be the Bombay Prevention of Begging Act, 1959 which was extended also to the Union Territory of Delhi. Under this act, a person found begging upon being found ‘guilty could be detained in a certified institution for a period of one year.11 When challenged in the Hon’ble High Court of Delhi, it was held that such statute completely failed to take into account the various aspects of begging.12 The court observed that a person could have taken up begging due to any of the following factors (i) The person may be lazy and would not want to work, (ii) the person could be an alcoholic or a drug- addict, whose only thought was financing the next drink or dose,(iii) the person could also be exploited by gangs that thrived on the earnings of beggars, or (iv) he could be a destitute, starving and helpless person. Professional beg- gars as mentioned in the first category would certainly be the persons the act was trying to target. Whereas persons mentioned in second category would actually require help in a deaddiction centre. A person who is at the mercy of a gang would need to be extricated from the clutches of such people. The last category of persons mentioned were persons who were genuinely helpless, who only begged to survive; to remain alive. Fairness and justice is the core of any law and policy introduced. No rule can apply to an entire population uniformly. Formation of sound law in keeping with this basic principle is the key to good governance.
“Any man who reads too much and uses his own brains too little, falls into the lazy habit of thinking”
– Albert Einstein.
Apart from a sound domestic legal framework, promulgation of laws and enforcement of policies formulated with regard to international business also play a pivotal role in our country’s progress. Policies framed on ‘elite’ economics but disregarding practicality are dangerous to say the least. What is even more dangerous is that the people who frame them believe it is for the good. Whatever harm evil may do, the harm done by ‘good’ is most harmful.
“In International Commerce , India is an ancient country”
– Virchand Gandhi
Foreign Direct Investment in India has always been a contentious issue. The governments post 1991 have been following a policy of allowing FDI, yet restricting the quantum of investment allowed in each sector. In the ‘50s, India had an open door FDI policy, since Pandit Nehru was of the opinion that foreign capital was necessary to facilitate progress. The rules were so progressive that investors outside India were given the freedom to repatriate all profits. The discontinuation of this policy occurred in the late 60’s due to the increase of state control in the manufacturing and services sectors.13 Post this era it was all downhill for foreign investors, with the enactment of FERA14 .
In June 1991, the Government of India had to face the ignominy of pawning 67 tons of gold to foreign banks to shore up its meagre foreign exchange reserves. This exercise was necessitated by the demand for the dollar emanating from within the country. Fast forward two decades we can see that the reserves have reached over USD 300 billion and we have instances of the country buying over 200 tonnes of gold from the IMF (International Monetary Fund) to boost its reserves.15 This turnaround can be attributed to the Government’s decision circa 1991 to pursue an active policy of attracting foreign investment by creating a liberalised policy framework. Having said that, one has to balance social responsibility with economics. Economists framing policies may have education from a MIT, Havard or Stanford, however, they may lack real time assessment, which would likely result in a theoretically sound legal framework which completely fails to address the ground realities and the practical issues faced.
To illustrate further, let’s recollect the policy for FDI in retail, which has been debated endlessly. In India retailers are largely the entrepreneurs who set up small shops, convenience stores in an unorganised manner. Instead of supporting human spirit and will, the influx of foreign multi brand retail chains is likely to wipe out the young businessman. The promise of lower rates of inflation and food prices, improvements in warehousing and distribution, which appear to be the factors that influenced the allowance of FDI in retail, may not necessarily prove accurate or worthwhile. The advent of foreign retail chains in Thailand and Malaysia should serve as a cautionary tale, regarding the plight of local retailers.
Globalisation is another phenomenon that India has had to face over the past few decades. This is the process of international integration in the fields of economics, fi- nance, trade, and communications. The policy makers in our country have to realise that blindly minimising trade restrictions and opening up the country to foreign investments may not be very opportune for developing country like ours.
Right to aspire for dignity and distinction is the prerogative of every citizen in a democracy.
On the social front, the labour laws in India have been categorised by many quarters as being pro- workmen. The need for far reaching reforms in such sector has been evidenced long back, as they16 create inflexibility in the labour market, which has been linked to a reduction in the growth potential of the economy. Such laws are nu- merous and ambiguous, that it is debateable whether they promote litigation or resolve disputes We as a nation could loose a lot in terms of its comparative advantage of labour abundance where such laws are inflexible to such a large extent. Certain reforms suggested are usage of contract labour in non core activities and enactment of a single legislation that combines the present legislations to form a comprehensive code governing and regulating the labour sector. Such need is even more apparent as witnessed recently during the construction projects undertaken for the Commonwealth Games, where there were denials of minimum wages, overtime and weekly holidays by contractors.17
Education is not preparation for life; education is life itself
– John Dewey.
The most important social obligation of education is still, very sadly a basic necessity denied to millions. One of the flagship programmes of the previous government was the provision for free and compulsory education for children between the age of six and fourteen18 and also envisaged the setting up of schools in every neighbourhood for the completion of elementary education. In a large country like India, even a small measure can have enormous impact if implemented across the country. Accordingly, a positive obligation was created on the State and a negative obligation on private educational institutions with respect to providing education. A bright feature of this programme was social inclusiveness, i.e., including minority institutions, so as to achieve the object of creating heterogeneous schools and classrooms. The inclusion of disadvantaged groups would mean that classrooms would not be the sole province of the privileged. Education for an effective policy has to focus on empowering the students by imparting knowledge and not merely teaching curriculum. It of course would not help if the students were not being imparted the skills necessary for their livelihood and survival. Nothing short of a cultural revolution is needed to empower our teachers and change the education system..
With the core issue of education, lies the deep connection to how one should treat our female citizens. The significance of Parvati, Sita & Shakti would have not been required to be separately imparted if only one learnt from childhood to respect women as an integral part of life.
‘Wherever laws end, tyranny begins’19 .
The judiciary is a body which ideally should be steeped in values and ethics. Its functions inter alia are to administer justice, to ensure that the rule of law is in place and to promote the observance and attainment of human rights.20 The common law based judicial system has failed to certain extent to keep pace with the tide of litigations that have been thrust upon it. In many cases, the judiciary had to act as a crusader of societal change. The courts today, despite the criticism, have been identified as the guardians of the constitutional promise of social and economic growth and have to conduct reforms to keep up with the march of time. The strength of various courts should be increased while maintaining quality of justice. The tenures/ retirement ages for judges should be increased to allow judges to cope with the humungous workload. With respect to the procedural laws, changes have to be made to the cumbersome and onerous aspects. Justice is not meant to be denied by delay. Of course people do take advantage of the system, but a gradual change in attitudes and procedures will surely go a long way in achieving a judicial dependency that is today lacking among the common man.
India, to realise its true potential and achieve what it can, has a long way to go. The journey has, I believe already begun a while ago, but is not at the pace it is capable of treading. My India has to be just like yours, where we wake up to a land which provides for all and not just cater to the interests of a selective few. So let us not only as a theory but in practice too try and put our individual needs after that of our country and imbibe a spirit of togetherness. A spirit which unites us, takes us at a swift pace to where we deserve and more importantly shapes our destinies, together as a nation.
