India needs a dynamic economy

There are hundreds of millions of Indians living below the poverty line, i.e., living with $1 and below. Yet India continues to invest billions in projects it could not afford to, such as the Chandirayan-1, the manned space flight and the Defense Research and Development Organization's numerous inefficient projects.

The effects of the global economic recession barely scratched India's economy, simply because India does not have a sizable manufacturing sector and instead relies on its laurels as a center for service related industries. On the other hand, India's only major manufacturing industry worth noting was its attempt at producing its own battle tanks, combat aircraft, submarines, aircraft carriers and etc. Heck, its own attempt at producing a combat rifle was so lame it took dozens of years to finally get it right.

So what bogs down India's attempt a producing its own arms? One word: INEFFICIENCY!

To get this right, one has to go back to the text books and ask: what is the purpose of manufacturing? If your answer is to convert raw material into a finished product, well then you got it half right. That is just too India. It does not realize that it needs to convert those raw materials into a finished product with as little resources as possible. What are those resources? Well for starters, there is money, manpower and, the most important criteria most tend to ignore to their utter doom is, time. Yes, time - for you would not want to buy a house today which will be completed 50 years later when you're no longer around to live in it. Nor would you walk out there today to buy a computer that runs on Windows 3.11 when you can have one that runs on Windows Vista.

You might be wondering what is wrong with India's defense industry? The answer - everything!

Since every defense corporation in India is run by the state, there would be a glut in manpower, since an exercise in lay-offs would mean the boot for the ruling government in an election. Thus there would be a lack of competition and the creativity that would induce new thinking and solution to existing problems. Hence the delayed projects, which in turn does not meet the required specification of its customers.

Another is the use of energy. India currently imports the majority of its fossil fuels from the Middle East, who would then finance the religious schools in Pakistan that is the fodder of terrorists organizations.

Solving this energy need would make us independent, and guess what? The solution might even significantly reduce diseases that afflicts many in the impoverished country - biofuel from algae.

What are the benefits of an algae based biofuel? Well for starters, it can be produced from wastewater, i.e. sewage. This would require significant investment to a city wide sewage system, which in its present state, is dilapidated and dangerous to India's burgeoning population. It is also relatively harmless to the environment since it is bio-degradable.

Yet why have not India invested in this technology? One word: cost. The process is expensive - but not too expensive, mind you - thus the reluctance of the government to invest in it. Besides once started, a whole spectrum of vehicles would be required to be converted to be more receptive of biofuel. Plus, the re-do of India's sewage network would at least be beneficial to its populations health.

These are simple solutions to India's growing problems, yet it boggles anyone as to why India does not get this done. Perhaps there is only one word to describe what goes on in policy makers mind: money. It would not be beneficial to the politicians, so why implement them?

After sixty years of independence, India is struggling to find its foothold on its future, struggling to define its economy, which still abandon millions for a select few. Perhaps what it needs is a hybrid of socialism and capitalism, just like the Swiss. Perhaps then, will India move forward into the 21st century. Perhaps.