As the election results come in, an agenda for the next government

The following steps, by no means are exhaustive, can be considered.

One, our crucial challenge is the disguised employment in the agriculture sector. We must create adequate employment opportunities in industry or services in India or abroad. Our manufacturing is burdened with higher power and logistics costs. Industrial power bears the subsidy of agricultural power. Commercial railway freight bears the subsidy of passenger fare. Due to fiscal constraints, agricultural power and passenger fare subsidies couldn’t be absorbed into the budget. Fortunately, the re-rating of PSU stocks has provided an option. The PSU market cap has increased significantly in the last three years. It offers an excellent opportunity to monetise, including the option of strategic divestment to raise resources to absorb either full or partial power and logistics subsidies to make our manufacturing competitive and take full advantage of the China plus one opportunity.

Two, there is a need to boost consumption at the bottom end of the pyramid and in mass market products. A gold monetisation scheme, which can bring gold locked in the tijoris (parallel economy) into the mainline economy can raise additional resources to provide such a boost along with additional liquidity to support growth.

Three, a large part of Indians depend upon agriculture. Agriculture will hold the key in creating inclusive and sustainable growth. The country became the largest producer of milk in the world through cooperative movements like Amul. This can be replicated in other commodities. Substituting imported agri products like palm oil, pulses, and dry fruits can create local opportunities. Focusing on exports of agro products and horticulture can support farmers. India can learn from the Netherlands which has become a large exporter of agri-products. We should enter into a bilateral arrangement for food vs oil. For example, Saudi Arabia can invest in the agriculture sector to secure its food supplies and provide us with a guaranteed oil supply.

Four, seek free labour movement with long-term work permits in our FTAs. We should provide preferential access to our markets on trade and investment in exchange for preferential access to our labour on long-term work permits. India is the highest recipient of remittances in the world. We should look to increase this through such access.

Five, provide skills through institutional mechanisms across India. For instance, the plumbing institute in Kendarapara, Odisha, can provide plumbers to India and the world.

Six, improve/launch PLI schemes to expand manufacturing jobs. For example, Indian garment exports lag behind by a wide margin. It makes commercial sense to export garments rather than yarn or fabric. This can also create jobs primarily for women workers. Processed agro products, automobiles, auto components, engineering, lab-grown diamonds, jewellery and shipbuilding can be areas of focus to create well-paying jobs.

Seven, services sectors like tourism, education and healthcare must be supported through integrated development. The Indian diaspora should be nudged to become brand ambassadors for tourism, education and the healthcare sector. India can provide speedy and quality healthcare at a low cost. Our citizens teach across universities around the world. An ageing world with an underfunded healthcare system is like the Y2K problem waiting to be solved by India. Indians spent substantial amounts on travel and education abroad. Developing the local ecosystem will help divert that spending to the local economy and create jobs in India.

Eight, growth requires investment. Our savings are frozen in real estate, gold, and currencies. We must unlock frozen savings through innovative ideas to ensure adequate domestic capital is available for our entrepreneurs.

Nine, investment requires the rule of law. Many investors prefer arbitration outside of India. Our judicial infrastructure is burdened with unresolved cases. Investment should improve judicial infrastructure to reduce pendency and resolve cases faster.

Ten, investment requires the ease of doing business. Land acquisition remains a challenge. Labour laws, despite some reforms, pose a significant challenge. We must create special economic zones where one window clearance is available for setting up a project with labour laws comparable to our peers.

Eleven, in today’s world of disruptive technologies, we must invest for the future. The vote on account proposed a fund for investment in future technologies. The same should be operationalised quickly through public-private partnerships. For example, the country should set up its own institute for artificial intelligence. The pharma industry should be vertically integration with large-scale fermentation plants and primary research institutes for new drugs.

Twelve, India, China, and the US have become the engines of global growth. We remain one of the lowest per capita carbon emitters in the world. While we should follow a green growth model through renewable energy, we must seek compensation through technology/capital grants to create a level playing field on per capita historical emissions. The world did come together to reduce ozone-depleting refrigeration gases. We must push carbon credit and emission tax on per capita and historical contributions.

Thirteen, land acquisition for mining is challenging in a populous country like India. Despite having large coal reserves, we import coal worth billions of dollars annually. We must create a responsible mining policy, balancing local and industrial interests. Odisha is a role model state that has become a revenue surplus primarily driven by mining royalty.

Fourteen, sustainable growth requires healthy and educated citizens. We have a long distance to cover in education as well as healthcare. Using mobile technology bridged the communication gap. We should leverage technology to provide quality education and healthcare solutions to citizens. A public-private partnership to keep government schools accountable locally can improve education significantly. DBT, through education coupons given to needy citizens, which can be encashed at a school that provides quality education, can dramatically enhance the quality of education.

Fifteen, Indians are good savers but not so good investors. Crores of Indians remain poor due to suboptimal savings allocation to cryptos, Ponzi schemes and derivatives trading. We must encourage investor education initiatives to ensure better financial awareness.

The writer is Managing Director, Kotak Mahindra AMC. Views expressed are personal