Prime Minister Singh has committed his government to much needed reforms. India, home to the fifth largest retail market, opened its doors to foreign retailers and investors alike. Prime Minister Singh took a lot of risk as there is heavy opposition to oust his government after the move which may just have enough votes and power to remain in office.
India has huge growth potential which is why it is included in BRICS, but without required reforms India will not be able to keep up development of its country in the same manner the other four members of BRICS. India has not demonstrated the strength, financial capacity as well as required intelligence to promote growth and innovation without foreign assistance.
Below are the two key areas his first set of reforms targeted:
- India opened its retail market to foreign retailers which will increase completion and should eventually lead to price cuts for consumers as more companies will compete for the same market.
- India also eased investment rules into the airline as well as broadcasting sector in order to attract more foreign investment and grow those two sectors which are in dire need of improvement.
Indians took the street and protested the moves by Prime Minister Singh. The protests show the lack of intelligence amongst the general Indian population which unfortunately breached the one billion mark due to a lack of population growth restrictions. China has implemented restrictions which curbed uncontrolled growth and acted in a responsible manner.
India has showed a lack of interest in general global developments and has done little to nothing to stop the population explosion especially within its undereducated masses. India faces a lot of issues and is the weakest of the five countries which comprise BRICS. On top of their vast infrastructure as well as energy problems, India is home to the least educated population amongst developing countries.
India requires ample foreign investment which so far was very limited due to regulations, but Prime Minister Singh took the first step to open up the country to required capital as well as intelligence from outside in order to grow and improve the weak sectors of India. There is a lot of foreign interest in India in order to capture the growth which will accompany the investment.
Business leaders understand the importance of getting into India from the start which will assist those firms in their growth plans. The first ones in usually partner with Indian counterparts and develop their business at a fast rate. India’s lack of quality education will pose a barrier for growth which could translate into an increased rate if immigration.
The reforms by Prime Minister Singh will have a big positive impact for India as well as the private sector and are a step in the right direction to improve India for its citizens. Unfortunately, the majority of Indians to not comprehend this yet which explains the heavy opposition as well as nationwide strikes after the announcement of reforms.
India has plenty of reforms ahead if it wants to better the country. India’s financial sector as well as energy sector are below average and require heavy investment. The insurance sector as well as educational sector is not acceptable either. India needs to add to presented reforms fast and start to gain momentum in order to remain a viable member of BRICS, the emerging global growth engine.