Much of the impact of world wide recession on India is a result of adverse sentiment in the financial markets instead of any real shrinkage in the Indian economy or slow down in any major sector. It is true that there has been a fall in exports , but other sectors remain robust because unlike China or other countries in South-East Asia, exports or flow of foreign capital do not play a major role in Indian economy.

With Government revenues continuing to grow at a reasonable pace and infrastructure needing massive investment, there is need to increase Government investment in projects which can help in generating power, improve roads, sanitation and irrigation facilities which will pay good results in times to come. With agriculture growth keeping pace there is no reason why we should not create more jobs in rural sector by expanding the scope of rural employment program like food for work.

While western countries including U.S.A are giving huge sums of money to rescue their banks and other financial institutions, India needs to provide money to fill the gaps in our infrastructure. India is one country which exist in two compartments which are divided and exist independently. On one side we have highly sophisticated sectors like IT which is doing outsourcing work for companies in U.S and Western countries. On the other hand we have large number of people who produce goods for exports like art works, brassware and other products for luxury markets but are paid very poorly for their labour.

The major reason for this discrepancy is lack of education and training. Our productivity in sectors like agriculture, industry and other sectors compare poorly not only with countries of Europe and America but also with countries in Asia. If we can compete in highly organized and skilled markets like space, manufacturing of cars and other sectors, there is no reason why we should lag behind in basic sectors. The need today is for massive up gradation of skills in which any investment made will give very good returns.

To give an example we have set up institutes of technology which produce highly skilled people who are in great demand world –over and get highest dollar wage for their skills. The question one would like to ask is while we have few institutions of world standards, there are large number of institutes, colleges and polytechnics which produce people at general level who are of poor quality and who can not be employed.

Investment in such sectors will give us long time results and make it possible for us to grow not only at nine per cent in future, but even attain double digit growth. A society which is crippled with a large population living below poverty level or going hungry or being provided one meal only can not hope to be come a world power at any stage. The success of few should not blind us to the reality of so many just surviving and deprived of basics like enough food to eat, lack of education and absence of a living space with amenities like safe drinking water or health facilities.

In olden times rulers used to undertake projects like building palaces, forts and other projects where a large number of people could be provided work to survive. The recession today offers us an opportunity to fill the gaps in our infrastructure. We have huge shortfalls in sectors like health, education, power generation, irrigation and facilities in our cities which are becoming urban slums. The investment in these sectors can help us in turning the tide.

Mere attempts to provide more liquidity to the banks, lowering rates of interest so that people could borrow more for buying cars and houses in cities will only be window dressing and not help our economy. Sometimes adversity offers an opportunity and such an opening is being provided to India in the current situation. Time has come when we should not boast of more Indians joining the ranks of super rich who own assets in billions but because we have been able to improve the quality of life for our billion plus population.

The use of technology and skills have made our country an IT hub and one who can plant our flag on the moon surface, but these achievements will have no meaning if same skills and technologies are not used to improve the life of those living below poverty line. Time has come when modern technologies should be used to provide education, health care and enough to eat at least for all our people. What we need today is a joint effort and not tendencies to divide people on basis of religion and region.

The Chinese Government has taken a lead in this respect by providing a huge sum for helping the regions which have been hit hard by recession. They are also providing help for the workers who have lost jobs and have also not been paid back wages as their employers have just chosen to leave the country in panic as the demands for goods made by them has just dried up.

Two sectors in India which require to be looked after are real estate and textiles. Both rank high in creating jobs. This process will require cooperation from the industry which should lower prices to create demand and Government should help them by providing liquidity in terms of credit on easy terms and lower rates of interest. The need of the hour is joint efforts as no Government is in a position to give doles nor are they desirable.

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