After whatever India has experienced in the sectors of investment and finance, it is clear that having a finance minister isn’t enough to operate the liquidity crisis and financial problems. A large number of Indian industries and businesses are falling down at an alarming rate because of this crisis whatever industry it can be from power and airlines to telecommunications and lending, no industry is left unaffected. Here is Financeshed’s take on Why India Needs A Minister Of Investment?
India needs a minister for investment who can deal with stressed investments which can be totally different from the Finance minister’s working and giving a broader working area for macroeconomic and fiscal policy.
If India wants to develop in a way other countries are developing, we need to open doors to the United States (US) and Japanese capital. Also, acquiring funds is not the only goal as we need to allocate funds wisely to break free from the lower-middle-income trap.
The investment minister could also be able to have solutions regarding ending bankruptcy and bureaucracy. Only availing funds will not help now. Now, we need to do something big that will dramatically change the whole scenario of this fund crisis.
Even though there are numbers of intelligent analysts and ministers and other providers of capital, no one is having a clue about how to recover from this situation. We need an investment minister who can overcome the limitations of the Finance minister and can have a positive outcome regarding the current situation.
The Major Crunch
Since September, there has been a major turmoil in each and every industry. The IL&FS Group has gone under $12.8 billion debt. Also, Jet Airways, which was considered to be India’s oldest and trustworthy private sector airlines, had to stop flying as a result of $1 billion in debt.
We need the minister who can ensure to help the borrowers by helping them in half-completed projects to get completed and earn out of it. This decision is outside the purview of the current bankruptcy law because of which the nation is suffering.
Government, many times trusts the outsiders to liquidate the firms or companies such as IL&FS but that is not going to work now. The government needs to take charge of the whole condition and help secure the taxpayers’ money getting utilized in these loss-making companies and projects.
If the government helps companies to get up again and return to their original position this will benefit company as well as society at large and we won’t need to borrow dollars and pay as interest everything we earn while we can some are willing to buy our stressed business and willing to return at the profitable position.
Looking at the concerns in our economy due to fluctuations in the rupee-dollar exchange rate, we need foreign funding at a huge scale which can only be managed by investment minister.
Given the needs of India and its economy, they should look at carving a committed fund. These funds obtained could be administered strictly by a special department which is the investment minister’s office. Asian market can also get affected by the U.S- China Trade War which can affect the economy and demand strategic investment
These funds so raised could be used for taking strategic decisions and quasi-sovereign institutions planning cross border investments of a longer tenure. The available funds can also be helpful for specified purposes which can become a helping hand to improve the current scenario.