IWK: One thing that’s new in the budget that was placed recently at the Indian Parliament?
AS: One thing that came across as really promising for the first time is a social security net for every citizen of India. That is a great direction going forward. The government is going to provide insurance policy up to Rs 200,000 by paying a premium of Re 1 a month, to people who are below the poverty line. I think that’s a great direction. Medical expenses can ruin families. I will take social security net and the insurance – accident and life – as a great direction.
There is a business side to it, but we are here talking about that one thing that’s promising in the budget and this is it.
IWK: Can I ask you about the business side of it?
AS: I think on the business side, the government is moving very aggressively to make India a much more attractive investment destination for domestic and international companies. I think the issue of ease of biz, issue of infrastructure, issue of processes, issue of opening up to FDI – I mean they have taken plenty initiatives across the board which will yield results in the form of investments coming in.
One more great direction the government is moving in – even before the budget – is that they want to empower states to take a lot of decisions on their own so that they become investment destinations on their own. To elaborate on this, India has 29 states today and we should look at India as 29 mini-Indias within one big India. As per our constitution, states have a concurrent list. They have power to take decisions in certain areas.
As per the 14th finance commission, instead of 32 % of central funds going to states, it is now 42 %. So the devolution has gone up to the states. PM has been a CM for several years too. He wants states to develop themselves and empower themselves as they have better knowledge to understand what people of that state need. The movement towards giving states more power is a fantastic direction for overall development of India.
IWK: Do you think Indian government is thinking towards a welfare state with the social security system?
AS: I would put it the other way. Given the demographic position of India, the issue of population and the focus on economic growth, the Modi government’s approach is how to make the economic growth going so that there are more jobs in the country. India today needs 10 million jobs per year for the next10 years.
One way is whoever has wealth, let’s spread it to everyone. The other way is to generate more wealth and take everybody up financially and make everybody wealthy. So give them jobs and raise their income. The Finance Minister, Arun Jaitley, has said, “We are pro-business and we are pro-poor.”
Unless we have more economic activities, new business coming up, we won’t get more taxes, more consumption, we won’t get more inflow in the hands of people. Generating jobs are going to create a chain reaction and ultimately improve the social conditions of the people.
Modifying social policies are being modified to address people who need them. They are moving towards direct transfer of subsidies to people, for example with LPG cylinders. There is no theft in the system.
India is looking at a developing economy for the welfare of the people and not a socialist economy for the welfare of the people.
IWK: What do you think is the biggest takeaway from an event like this?
AS: It is unfortunate over the last few years, business people getting to meet other business people across countries, in person, has not happened. This is a great platform for personal interactions.
I believe countries don’t collaborate, businesses don’t collaborate. People collaborate. Unless people to people contact is established, there is no trust in the collaboration. This forum is providing that opportunity.