RailEnquiry

Prime Minister Manmohan Singh will hold the finance portfolio for some time. That is why it is alarming to note signals from C Rangarajan, who heads his council of economic advisers.Rangarajan, a former Reserve Bank of India (RBI) governor, has said the government will try to mop up more foreign exchange by issuing bonds to fund oil imports and issue high-return bonds to NRIs. On Monday, the RBI opened the window for government and companies to borrow overseas a little wider.These measures, intended to strengthen the rupee, are myopic and could explode in the government's face. It is a bad idea to borrow shortterm funds from overseas to fill your coffers, yet that is the only thing this regime is talking about. This will not do. The government has to focus on attracting long-term funds to India.That can only happen through foreign direct investment (FDI). Boosting FDI inflows should be the priority. There is little that the government can do to boost global investment sentiment, but there is plenty to be done to improve things at home.First, the government must implement large, shovelready projects. One such project, needlessly entangled in red tape, is the Delhi-Mumbai Infrastructure Corridor. Spanning six states, this project will build new towns, highways, rail links, ports and airports. India and Japan have tied up finances, some land has been acquired, but progress is tardy.The government must take up this project as its flagship effort to boost investment and growth. Second, large electricity projects are delayed because of uncertainty over availability of coal and regulations on power pricing. These need to be sorted out immediately so that ample power comes to the grid.With power in abundance, rural India can become a hub of industries that are related to the processing, storage and transport of food and farm output.Three, the government has to quickly sort out the mess in telecom by issuing simple rules to price spectrum at reasonable rates, so that India's Prime Minister Manmohan Singh will hold the finance portfolio for some time. That is why it is alarming to note signals from C Rangarajan, who heads his council of economic advisers. telecom revolution can morph into something that assists education, healthcare and inclusion. Focus on these, the dollars will come.