Here’s What Needs More Attention

2018 will be the year of turnaround for the Indian economy. All indications show that the economy has bottomed out and growth is set on a higher trajectory.

Faster growth will raise incomes and reduce poverty. The key challenge, however, will be creating jobs. I expect a strong policy push towards the social sector in the new year, including education and training, healthcare, and social security. Above all, employment generation will be a key preoccupation for the country in 2018.

Currently, public expenditure in the social sector is quite low compared to global norms. In education, which also includes sports, art and culture, the government spending in 2016-17 as per budget estimates was 3.2 per cent of GDP, the same level as in 2011-12. There is bound to be greater focus on this area, particularly as education outcomes of children are at low levels, say surveys. It needs to be taken up to 6 per cent of GDP over the next two to three years.

Skilling is another area that needs focus. Setting up vocational training centres in K-12 schools is a good initiative by the government, but needs to be fast tracked to ensure government secondary schools across the country also set up such centres. This will ensure employability for youth and create self-employment.

The recent rapid pace of technology development too necessitates strong attention to enabling digital access to our children and building up their capabilities to use new technologies. The government has made a good beginning with Atal Tinkering Labs in over 2,400 schools to foster analytical and computational skills among secondary school students. A special technology fund would go a long way towards infusing technology in all schools at all levels.

India’s healthcare facilities too can be expected to receive a boost in 2018. India ranks 154 of 195 countries in The Lancet’s healthcare access index. The government brought out the National Health Policy in 2017 to strengthen grassroot healthcare facilities. The upcoming budget is likely to come out with added funding for meeting the target of raising public expenditure on health to 2.5 per cent of GDP.

The Swachh Bharat mission is now deeply embedded in municipal corporations and village councils across the country. Almost 3 lakh villages have been declared open defecation free and next year the progress will be further consolidated to make a bigger difference on the ground. Water management, urban sanitation and waste management should be high priorities as well. Private sector has played an important role, but more initiatives from India Inc. will help the government to achieve its mission of a clean India.

The public at large will be looking for policies to strengthen job creation. In general, the government over the years has linked job creation to investments and brought out numerous tax and incentive policies to encourage capital expenditure by companies. It may be time to change this strategy to provide incentives that will encourage direct employment creation.  

While India has a huge demographic dividend, it can only be leveraged by increasing the productivity of workers. The government is sensitive to these issues and the industry is hopeful that the social sector will receive high attention in 2018.

The author is vice-chairman, Bharti Enterprises