Everything is connected. To have a high-tech sector, the country needs a strong manufacturing sector, a sound economy and sound finances. Instead, it seems “India’s fiscal deficit in the first ten months of the 2013/14 financial year (at 5.33 trillion rupees) crossed the target for the whole year”, and “India’s economy grew a slower-than-expected 4.7 percent in the three months through December, dragged down by a contraction in manufacturing and mining”. As the links show, I didn’t make this up.
So, where are we headed? A huge fiscal deficit means that India has few funds to upgrade the educational and R&D infrastructure that our country urgently needs to strengthen and expand the high-tech sector.
Setting up another Pay Commission, especially when the economy is showing signs of a slowdown, could only fuel inflation and deepen the deficit. This is the time instead to invest in education, manufacturing and R & D. Or we continue to lose international competitiveness, which stokes the current account deficit, which stokes the fall in the value of the currency, which stokes inflation and further loss of competitiveness.