IIM Kozhikode’s Expectations From The Union Budget 2016
B-school students of 8 campuses across India participated as part of new series of InsideIIM– ‘Expectations From Budget 2016’ in association with CNBC TV-18.
The following article contains excerpts of students from IIM Kozhikode –
Gurmeet Singh and Koustav Pal
The students at IIM Kozhikode expect the Budget 2016 to bring a fundamental change to the Indian economy. The two key areas which the budget should address according to them are the Banking sector and the Rural economy. If India’s GDP needs to grow at double digits, the banking fundamentals need to be very strong. They feel that it can be achieved by bringing more clarity on bankruptcy code, capital infusion in public sector banks and finaly giving a big push to infrastructural investments.
Regarding the rural economy, they suggest that the finance minister should focus on derisking of agriculture. This can be achieved through expansion of irrigation coverage, giving a big push to crop insurance and focusing more on farm investments than farm subsidies.
Speaking of the youth, Indias young workforce presents a great challenge to the government, private institutions and the educational edifice of the country. Some of the recent initiatives like Make In India, Digital India and Skill In India are great steps towards empowering the youth. However, for these initiatives to be successful, what is needed is a reform in the exisiting labour laws, RTI regulations and a sound technological infrastructure in the form of mobile and internet penetration across rural India and Tier 2 & 3 cities. Only then will entrepreneurs be encouraged to setup business ventures and create skilled jobs.
To improve the employability quotient of the youth, the curriculum needs to be redesigned into a more skill-based format and faculties from the real business world should be introduced more often. As far as private institutions go, they should be encouraged to set up high quality institutions by creation of state-level legislations and putting in place a regulatory framework to check the quality and transparency of these institutions.
Vaishnavi Adapa and Mohammed Talha
We wish that this budget would create opportunities for the holistic and inclusive growth of the country. Our fiscal policy created a fiscal consolidation program which aims at a 3.9% fiscal deficit. Though it is less than the previous year at a far beam is 3% which is getting delayed year on year. For fiscal consolidation to be achieved, increase your revenues by widening the tax basis or increasing the efficiencies of the PSU’s. Cut the expenditure by rationalising the subsidies or decreasing the leakages by using DPT or scrutinizing every scheme for their efficacy before their renewal.
For fiscal consolidation to be achieved, increase your revenues by widening the tax basis or increasing the efficiencies of the PSU’s. Cut the expenditure by rationalising the subsidies or decreasing the leakages by using DPT or scrutinizing every scheme for their efficacy before their renewal.
As young citizens of India, we expect poverty reduction which can be achieved through primary education and employment generation. The manufacturing sector growth has been on a decline and Make in India initiative can be used to boost employment specifically textile industry which is the second largest employment generating sector after agriculture and can be stressed upon. As management graduates, we expect India to improve its rank of 130 in the ‘ease of doing business’. This will enable India to attract FDI and FII which is fleeing the world markets at the moment. The ‘Startup India, Stand up India’ initiative should be implemented at the earnest and free startup incubation and accelerator centres should be opened up in every major city.