Here are some of the observations that I have made while browsing through the news channels, web-sites, and journals, combined with my own deductions. I believe that to address a wider gap, this is a need of the hour for the next 2-3 years. This has to be preceded by a proper planning and exhibition of execution.
- DIIs or domestic institutional investors affecting growth towards the investments in the capital markets needs to raise and invest capital in the stocks instead of relying wholly in FIIs at some point of time, when the blue-chips can be invested in. Other methods of investments are also a welcome to garner greater returns like bonds and debentures. This is not the time to take riskier actions, but to stabilize and consolidate.
- National and Private Banks coming for consolidation of funds in Dollars to raise capital for alternate investments in India mostly, and overseas as well to some extent.
- Gold Imports- Imports should not be directly curbed but tax issues should be introduced to pay in dollars for every gold import by companies to an elevated extent so that the gold prices even go higher in the finished goods market. This is not a popular measure, but to address fiscal deficit, it can be done. Link gold to the growth of dollar reserves in India by the methods we know best.
- A top off taxation based on work and income not just loans for budding entrepreneurs. BY this I mean that some of the sectors which are non-taxed due to growth should be taxed at zero level for all, but a beta surplus of taxation added based on the income of a year or assets garnered.
- Teach Preach and Practice – Gold is hurting the economic FD, we need training in budgeting and finance right from schooling, we need a practical orientation in investments and financing, debt and equity instruments, and basic budgeting skills.
- Invest in the local entrepreneurs through sustainable profit regeneration methods, and investing their profits again for their purpose. Bring up the baby in the younger generation entrepreneurs. And this can be done by a matured entrepreneur himself.
- Do not outsource jobs for labor arbitrage alone, but think of other factors as well like quality of work, associated R&D and innovation also. India is already a hub, some other folks might think of shifting jobs else, but think of the maximum returns, There has to be a balance between in-house capacity building, outsourcing and fiscal deficit account.
- Diversification of Capital in terms of stand-alone and diversified activities in profit regeneration through methods and means that help in a sustainable system of methods.
- Credit Rating Agencies under the government for rating non-banking financial institutions, and of course removing the ponzy schemes in order to allow re-investment in the national banks. SBI has seen a major growth in deposits after the crackdown in WB.
- Curbing food prices by allowing investments in technology in agriculture and farming methods, food storage technology, working on models in food processing, use of lands for agriculture for its purpose, not wasting the forest lands, SEZ Zones in non-productive places in agriculture, creating more job opportunities are needed at this hour.
Thank you for reading this note! Please leave your comments for any points which you feel need more explanation. I will be more than happy to elaborate.