Pitch India as a low-cost high-end high-quality R&D hub.

The investment will stop brain-drain.

Create more employment in new sectors.

More revenues to the treasury.

And many others.

Education & Healthcare: The Government should spend at least US $ 4 Billion on healthcare and education over a period of 24-36 months. Investment in education and healthcare is a must. It's a smart and an essential investment with long term benefits.

These additional spendings should be monitored and supervised by an independent body for better implementation.

Incentives to Companies & Individuals

Temporarily lower corporate and personal tax.

Temporarily reduce the sales tax.

Lower the base lending rates.

Allow easier access to money supply.

Extend assistance to Exporters.

Encourage banks to increase lending.

The Government should work with the banks and other institutional investors and create a distressed fund that will buy non-performing assets from the local banks.

There is also a need to create a credit guarantee agency to boost lending.

Measure to Cover the Revenue Shortfall to the National Treasury

Increase duties on non-essential and luxury items.

Remove the subsidies on Oil, Fertilizers, and other items. There is no need to safe-guard the domestic consumer in the current market condition. The prices are lower already.

Reduce red tape and wasteful spending.

Lift ban on the export of commodities including Cement, Rice and others.

Increase duty on Alcoholic Beverages and Cigarettes.

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Sanjeev Kumar is Chief Executive Officer of Delamore & Owl Group of Companies (Website: www.delamoregroup.com), Toronto, Ontario, Canada. He holds dual Master's Degrees - one in Business Administration and another in International Finance. He has been the recipient of the "Southeast Asia Young Achiever's Award" for Year 2002.
Article posted on December 28, 2008.