Raising concerns over the subdued exports of India, RBI Governor Raghuram Rajan today said the weak state of global economy is a big factor there. As regards the stalled projects, the RBI chief said, “Economic growth will help put projects back on track that are on difficulty. We are doing everything we can as we work with banks to put it back on track.”
Talking to reporters after a meeting of RBI’s board, the central bank chief said, that subdued exports, primarily on account of global factors, remain an area of concern.
Rajan, meanwhile, said capital investments are picking up but a stronger growth would require more reforms and clearing bottlenecks for stalled projects.
“I would say (economy is) picking up,” he said.
We see some signs of capital investment picking up. There is a continuing need, which the government is trying to address, of putting some of the stalled projects back on track.”
Stating that the Indian economy is in the process of a steady recovery, Rajan said, “Would we want to (grow) faster? Yes, obviously. But we have to work in the areas of bottlenecks and areas where we need reforms to ensure that growth is strong and sustainable.”
On exports, Rajan said they “are an area of relative weakness. But they have been weak across the various Asian economies, to the exception of perhaps of China. The weak state of global economy is a big factor there.
“We need to continue to do the spade work to create sustainable growth and we discussed various plans that the RBI has over the coming years to do that.”
No more stalled Projects ?
Here is one of the things that I think is needed :
Treat MII ( Make In India ) on par with MOM ( Mars Orbital Mission )
We have all seen MOM control room on TV , with dozens of scientists glued to respective computer screens , monitoring every aspect of the Mission
And , whenever required , taking ” Course Correction Actions ” in real time
For MII ( Make In India ) too , we need such Control Rooms
One at the HUB (in DIPP ) and 20+ SPOKES (one each in State Capitals )
The concerned officers will monitor :
> WEB SITE TRAFFIC
Who is visiting from where and looking at which pages , and doing what , and for how long …etc
> MESSAGE TRAFFIC
From server log of B2B web site , monitor which FOREIGN COMPANIES are blasting ( We are interested in a JV with you / We want to buy from you ) messages to which INDIAN COMPANIES
> ACTION TRAFFIC
B2B server sending out ( within ONE MINUTE ) , full details of above-mentioned messages to,
> PROJECT MONITORING
Implementation of each project ( above a certain value ) being monitored using PERT technique – thru a specific Mobile App installed on the cell phones of concerned Government officers
To make MOM a reality , cost the country , some Rs 430 Crores – and time of some 100 scientists
I believe CONTROL ROOMS ( War Rooms ? ) of Make In India , may not cost more than Rs 43 Crores ( – all put together )
And some company like Infosys / TCS / Wipro , will be able to construct – and operationalize – such rooms ( hardware and software included ) within 3 months
Given the challenge to raise our ” Ease of Doing Business ” rank from 142 to 42 , this is the surest / fastest / cheapest method !
14 July 2015