A big part of the workforce of the Indian economy is
occupied by agriculture. The disguised unemployment has been a permanent feature of the Indian-agriculture. The budget should try to
derive excess labour supply from agriculture to manufacturing by providing them
right skills. Skills directly add to the productivity. No organisation can
survive without right skills to produce and market its product... Even our PM
believes in the skills-shortage and economists under-score his vision… Skills
are also important for productivity and wages/incomes, and, demand, production,
employment and growth... Therefore, any policy, even FDI, if leads to these
conditions within the domestic economy should be promoted... Public-spending on
infrastructure when the private sector is constrained of capital and
infrastructure, itself... will also help pick the economy steam, growth,
because we are supplying what the economy really needs to increase quality of
life... We want inclusive development of all people and regions, and that
should be best gained when we increase knowledge and skills, a productive
work-force, a true human-capital... he will also pay taxes, revenue will
increase... The government is exploring ways to finance the
infrastructure-deficit... This best way to finance this is to borrow from the
West for long-term where interest rates are record low... That would also help
improving foreign-reserves, meanwhile… but, it entails exchange-rate risk which
might require hedging through currency derivatives. However, foreign investment
could also be secured by offering rupee denominated debt…
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