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Dear Readers,

The Indian services sector, which is the fastest growing sector, contributes about two-thirds to the Indian economy. It accounts for 28% of employment. Information Technology, professional services, telecom, healthcare, education, hospitality, transport, housing and retail are the largest contributors. The sector is the largest receiver of FDI. India is the eighth largest exporter of commercial services in the world with a share of 3.4% in 2016 (WTO). It is double that of merchandise exports at 1.7%. Service exports recorded a growth of 16.2% during April to September 2017-18. Total exports of software services including services of foreign affiliates of Indian companies during 2017-18 are estimated at US$ 131.3 billion.

Housing (Real Estate) is the largest employment provider after agriculture. It was expected to employ over 52 million workforces by 2017 and 67 million workforces by 2022. Since the last few years, the sector has large stressed assets due to external factors, delay, obstructions in numerous approvals leading to cost overrun. The demonetization exercise undertaken in 2016 also dealt a severe blow to this sector bringing many projects to a standstill. The RBI’s financing and banking policies have also been constraining factors.

Millions of Bharatwasis are living in rural villages in dilapidated mud huts leaking in many places and millions live in 100 to 200 sq.ft. houses with a family of ten members or so. Both union and state governments spend thousands of crore in showcasing glamour, talk about making India’s cities like London/Singapore and having many smart cities. Large-sized hoardings of promotional are displayed, not caring for beauty of the place or whether such hoardings hurt the environment. Instead of doles there is the need for austerity; simplicity for the creation of employment and elevating the existence of our Bharatwasi brethren to a human-like living condition. Control of population is also essential. Land has become very expensive. The government should allow building high rise houses 20-30 km away from the city. Instead of doles, give 1-2 cottah of land to build houses.

The Goods and Services Tax of even 5% on house should be abolished, at least, for a house below 750 sq.ft. carpet area, not super-built area.

Social projects like hospitals and healthcare facilities have been bleeding due to delays in manifold approvals and changes in rules and regulations. Subsequent reduction in FSI and height causes heavy losses as foundation was laid based on previous sanctions. Even the legal bids are being questioned by the CAG/State Audit Department.

Bharat can be the world number one destination for foreign tourists and domestic tourists provided there is security, good motels, small comfortable inns apart from hotels on highways within a radius of 200 km or and at a tourist spot.

It is a pity that despite Bharat advancing in the ranking in the ‘ease of doing business’ index, investment by old big business houses has become very insignificant. Biggest business groups’ investments remain very low. Leaders of Bharat should survey the reason of such negligible investments, stressed assets, unfinished projects, projects hanging for approvals in spite of them bleeding heavily. Media should also highlight this instead of simply criticising the promoters. No promoter likes, even in his dreams, to kill his own project that he nourishes with his blood.

The third generation of old big houses is reluctant to take to take risks. They are in the grip of a fear psychosis. When they get penalised by the authority even when they are victims of external and internal factors without their faults, they feel it is better to be safe than sorry. It is the spirit of entrepreneurship that is dying a slow death because of this.

The speculated return of NDA in power after the air strike on terrorist camps in Balakot, coupled with inflow of foreign capital, has led to a recovery in the stock market. Foreign Portfolio Investors invested ` 2,477 crore in domestic stocks. In two days, they bought stocks worth Rs. 6,300 crore. The have invested Rs. 30,000 crore since February 20, 2019. The US Federal Reserve has withheld the decision of a hike in interest rate. Due to uncertainty in the global markets, investors are turning to India’s stock market considering it a safe haven with long-term growth opportunity. However, going forward, due to the upcoming elections, signs of the economy losing steam and other geo-political factors, markets are likely to remain volatile.

Indian economy: The Indian economy had decelerated in the December quarter 2018-19 to 6.6%, the lowest of in the last five quarters. With crude oil price is hovering around US$ 65/67 per barrel, Current Account Deficit (CAD) is unlikely to deepen. The ongoing trade rift between USA and India is also a matter of concern. USA is having a trade deficit of US$ 60 billion with India. Mr. Trump is asking India to reduce tariff. India will not have much outgo even if duty is reduced, as some items are luxurious and few. But India’s export will be affected much. India’s goods worth US$ 5.7 billion will have impact if so called generalised system of preferences is scrapped.

World: Global growth has slowed down. China and USA have been trying to reach a deal to sort out a tit-for-tat trade battle.

A minimum wage rise and raising the monthly PF contribution ceiling to Rs. 21,000 (from the current ceiling of Rs. 15,000) and inclusion of all allowances even over time will have great impact on employment and global competitiveness.

Bharatwasi’s leaders need to navigate Mother India to provide sustainable and inclusive growth, full employment, even mud houses with country roof, food and clothes for all. For this, they should work hard discharging their legitimate duties fearlessly having faith in themselves, entrepreneurs, promoters, all and in God. Culprits must be punished on proper investigation and not on speculation and perception.