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Watch Jay Panda, Lok Sabha MP of Biju Janata Dal in conversation with Govindraj Ethiraj Founder-Editor of BOOM on prospects for the Indian economy and more.
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Baijayant Jay Panda, is Lok Sabha MP of the Biju Janata Dal from the Kendrapara constituency. He says, “The Largest part of turmoil is in China’s traditional economy, which has affected sectors like steel, minerals which has then impacted states like Jharkhand and Orissa in India. These are states which have outperformed rest of India in last dozen of years. Though these states were known as basket cases they have shown double digit growth in last many years due to the growth in industries like steel and mining.” Panda concludes that India hence needs to develop a more efficient supply-chain management system to insulate itself when economies like China slowdown.
He notes that India has had many internal challenges like the coal licensing scam and the recent Supreme Court order asking mines to be opened will help the economy.
On the comparison made between the Indian and Chinese economies, Panda says, “Over the last 35 years Chinese economy has moved from being at par with India to about 5 times as large as India. China has followed the classical, free market policies to reach this level. India still hasn’t been able to get the GST bill through. This shows that it is time to recognize that India is not one single market domestically. Therefore, It would be wrong to compare India with China.”
India has to get a lot of internal hurdles out of the way. Otherwise India we will miss the bus again, though he points out that he does not think India has missed the bus so far. India however is at a risk of it.
Jay Panda feels that 1st half of budget session was productive as we it was able to push reforms like Aadhaar bill, bankruptcy bill etc. These are building blocks that will contribute to the competitive economy that India seeks.
States need to implement new legislation but also compete with other states to increase India’s competitiveness on the whole. Central government can do many things in terms of removing hurdles on FDI. Central government can remove the sectoral caps for sectors where there are no geostrategic issues involved.
He moves on to say that global outlook towards India is much more positive than the domestic sentiment. The domestic Indian attitude needs a change. Expectations have been high from the NDA government and this has given rise to despondency due to the slow pace of reforms. Government’s glass is half full in terms of reforms and implementations. India is seeing the results of government putting building blocks in place.