After subscribing to outdated economic model and technology for a long time post-independence, India had to shed the Soviet model and embrace the market economy to return to economic development, says Subramanian Swamy, economist and Rajya Sabha MP. Subramanian Swamy, while speaking at TiEcon 2019, explained the current status of Indian economy, which is aiming at 5 trillion dollar milestone and the economic history since the Nehruvian era. India should aim to become a developed nation in all aspects. If there are significant changes in resource mobilization and other aspects, India can overtake America within 5 years. But in order to reach this milestone, there should be radical economic reforms, he said.
Abolish Personal Income Tax
The entire income tax system should be abolished, said Subramanian Swamy. Swamy also pointed out that there are many alternatives before the government to offset the income loss after wiping out personal income tax. Policies in the past that have driven up interest rates have only served to shut down the medium and small businesses. The focus should be on the general equilibrium of the economy. With China’s economic model getting outdated, India can easily overtake China by utilizing the power of youth.
Utilize the potential in agriculture
India has immense potential in the agricultural sector. Basmati rice is of high demand abroad. Similarly, there is a high demand for Indian cow milk. If we manage to export them in high quantities, it would be beneficial for our farmers. More innovations should come from the agricultural sector. India is rich in youth power. If we utilize the potential of youth to the best extent, we can easily overtake China. Subramanian Swamy added that China’s economic model has become outdated.
The country has tremendous potential when it comes to agriculture. Innovation space will help us there. Innovation should happen at the macro level. Dr Subramanian Swamy also added that organizations such as TiE have a big role in discovering such macro-level innovations.