Service Sector Centric policies depriving the poor of livelihood

by confuzzled dude Sun Jul 13, 2014 11:38 am

From 1991, when extraneous pressures forced it to take a right turn from a mixed economy to a World Bank-imposed reform mechanism, only the rich have benefitted from budgetary exercises. India is perhaps the only developing country where 64 per cent of the GDP comes from the services sector, which provides hardly any facilities to the poor but definitely offers luxurious services to the rich.

Both manufacturing and agriculture, which contributed over 70 per cent of the GDP in the ’80s, now account for less than 40 per cent. Over 50 per cent of the population still depends on agriculture for livelihood, but have been left out of the growth miracle. Yet, our fiscal policies are aimed at attracting FDI only in services. Will FDI indefence and insurance solve India’s unemployment and poverty problems? Foreign investors have been investing in captive markets or high yield sectors. For example, the percentage of FDI in trade, hotels and restaurant business has grown from 14 per cent in 2001 to 24 per cent in 2014.

Foreign funds (belonging to invisible Indians as some suspect) investment in financing, insurance, real estate and business services rose from 14 per cent to almost 18 per cent during the past 12 years. Evidently, FDI sponsors have taken more money out of India through tax-free dividends and sale of their shares than they have actually invested. They haven’t created any tangible assets in India. Instead, they provided plum jobs with stratospheric salaries to those who influence policymakers. Modi is under no obligation to give more opportunities to those whose sole aim is to earn more miles and munificence from their foreign promoters.

http://www.newindianexpress.com/prabhu_chawla/columns/Jaitleys-Next-Budget-Should-be-with-a-Difference-in-Taste-Tone-and-Tenor/2014/07/13/article2327281.ece

by Marathadi-Saamiyaar Sun Jul 13, 2014 11:47 am

It takes money to make money. Naturally, the rich are at an advantage on this major factor. The rest have to toil through hardwork, determination, innovation and luck - making it difficult to get out of the rut.

Service Sector Centric policies depriving the poor of livelihood

Service Sector Centric policies depriving the poor of livelihood

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