Best of BS Opinion: A Carpe Diem moment for Indian policymakers

The rapid growth of AI, success of mobile phone manufacturing, the index for states' fiscal health and labour shortages all point to opportunities for policymakers

The Indian economic and policy environment has been buffeted by strong winds on all sides for the past couple of months. Yet, there is a case to be made for seizing the moment as an opportunity for change. That, indeed, should be the lens through which we can read today's editorial pieces. Let's take a look.   Our first editorial surveys the rapidly-evolving landscape of artificial intelligence, and argues that if we are to marry development with AI, policies around it will need active adaptation. Legislation and law-making must be able to keep pace with change, while ensuring that AI is used to enhance efficiency and development, and doesn't become an instrument of repression.  India's iPhone exports have surged past the Rs 1 trillion mark, suggesting it could be a global export hub for smartphones and electronics. Our second editorial calls for lawmakers to use this moment to review the production-linked incentive (PLI) scheme for all sectors. It notes the productivity imbalance within manufacturing, and suggests structural reforms for the sector, especially the low use of labour. As supply chains reset in the wake of ongoing geopolitical changes, India would do well to take advantage of the opportunities it presents.

 

  In her column, Kanika Datta notes the recent comments about the difficulties of finding enough labour by construction giant L&T's CEO S N Subrahmanyan. Contrary to popular perception, the shortage of labour is not because of various freebies or even MNREGA, the jobs guarantee programme. Indeed, both agriculture, organised manufacturing and construction have shown high rates of labour intake. Datta argues that as the rural economy has improved, labour has found better opportunities closer to their homes and taken advantage of those.  

Govinda Rao welcomes the Niti Aayog's report on states' finances, but points out we need to start measuring them right, saying that sub-indices currently used do not fully capture the state of states' finances. The Niti Aayog's Fiscal Health Index is notable, he says, but there is a need to clean the data and make them comparable across states. Indeed, the next report presents a chance to ensure conceptual clarity on what is sought to be measured, and the use of accurate and comparable data to ensure it measures what is intended.  A number of startups in India have grabbed the opportunity to go green. Now, a book chronicles their story. Prosenjit Datta, in his review of 'India’s Green Start Ups' by Jayant Sinha and Sandiip Bhammer, says that while the authors have picked their subjects using clear parameters, the book itself could have done with more effort. Some of the questions the authors ask are clever, but detract from more serious issues, such as the total opportunity landscape or “India only” problems they faced.