The Russian economic model adopted by the India post its independence and outdated laws of the British colonial era are decelerating growth of the country's economy, feels Shiva Cement chairman cum managing director RP Gupta.
"We should come out of the syndrome of Russian economy model that we adopted after independence. We must treat all productive assets as national assets, irrespective of ownership”, said Gupta.
In his book titled 'Turnaround India', released recently by Gujarat chief minister Narendra Modi, Gupta stresses on the necessity of regaining nine per cent economic growth for removing poverty, creating jobs and setting right the macro economic parameters.
Blaming domestic reasons for the current reversal in growth, the book recommends simplifying legal frame work which is influenced by old British colonial rule.
"Regulatory risks must be eased for economic activities. We should rewrite environment and land usage laws that are big hurdles to new investments. The proposed Land Acquisition bill should be put on hold. Political activism against economic activities must be discouraged since it is a deterrent for new investment”, says Gupta.
In his book, Gupta offers some out of the box yet workable solutions to turnaround the economy.
He has suggested conversion of of personal income tax to expenditure tax, restructuring of the Indian Railways, a new gold ETF (exchange traded fund) scheme and alternative mode of subsidy.
On tackling inflation, Gupta says it cannot be controlled by monetary tools alone. Economic efficiency of the country has to be improved as this will help remove supply constraints and reduce cost at consumers’ level.
“Economic efficiency does not depend upon producers alone, rather it depends upon the whole gambit of policy, regulations and economic environment. Improvement of efficiency will also help reducing trade deficit and strengthening rupee value and will attract foreign funds for fuelling growth”, he adds.