Imagine, there is a patient who is having a fourth degree haemmoroid with constant internal and external bleeding. Moreover, say, due to blood and haemoglobin loss, the HB level drops to 2. As an emergency situation the doctor will pump in pure blood and haemoglobin.
This body will be stabilised for a while. But, this is not enough. The body will finally need the haemmoroids to be removed through a surgery to cure the body. This is less risky if the haemmoroids are non carcinogenic. Moreover the body also has to be resilient to accomodate post surgery situation. This year's budget measures for the Indian Economy were like the blood and haemoglobin pumping to such a human body. However, surgical measures were still not applied which may be required and implemented soon.
Yes, certain positive steps have been taken in terms of pushing the infrastructure demand. Such demand will however be realised only when the lagged or halted projects are pushed along with a clearance of dead investments complemented and accelerated by fresh investments for specific sectors with strong auditing structures and mechanisms.
However, these investments might not be enough to boost demand creation and paying capacity of every income class. We have to see the response of the economy very closely and keep on implementing the demand side measures.
Moreover, class specific income tax measures to enhance paying capacity will soon be required. The consensus around everywhere is that demand creation and it's sustainance is a key now to realise the 5 trillion dollar growth path. At this juncture, I feel that "environment" and "renewable energy" as a sector can act as a "helicopter economy" gift for Indian Economy. The focus of the article is to analyze how this can actually happen for the Indian Economy in future.
The current budget indicates an allocation of INR 22000 crore for the renewable energy sector. However an allocation complemented by its efficient utilisation and regular auditing can lead to green job creation. If this money is utilised in setting up of renewable energy power projects along with its efficient distribution, then it will create a demand for jobs for carpenters, fabricators, designers in the entire value chain. The same can happen in renewable energy projects related to biomass, wind and waste sector. The question is - can some of these sectors absorb migrant and informal labours considering the differential in skills of sectors. The answer is not yet clear but can be explored. Can this money also be applied in cleaning processes of waste, water, land through new renewable energy projects by enabling employment generation with a strong, digital and transparent auditing systems? Why not.
Similarly if solar power pumps are given to farmers, can the same measure create some new employment and also be complemented by agricultural productivity enhancement measures for the same solar power pump users? By doing that the same farmer can raise the awareness for using solar pump and also come out of the agrarian crisis. Gradually, the early users can create a network with new entrant farmers who are in distress and can take them out of such a situation. This can be enabled through a new governance structure that can be implemented by the central, state government along with district, village level institutions.
This might need additional assistance too through incremental credit allocation and it's distribution and utilisation by the farmers. Gradually these measures can be expanded to other farmers too in distress. Similar employment creation and processes can also be initiated in the air pollution sector through the budget allocation of inr 4200 crores.
A lot will be said in the next few days about what budget didnot do and could have done. Therefore in the limited space of this article I will however highlight that the budget did inject the haemoglobin and has created a scope of a helicopter economy through "environment" as a multiplier sector. However, the future will suggest whether "environment" becomes a rescuer and the lender of the last resort for the Indian Economy. As an eternal optimist, I will believe and hope that such a lender of last resort will go a long way to ensure a green and sustainable growth and development in India in the long run.
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