Hon’ble Prime Minister of India
New Delhi
Subject : Boost in Indian economy – Suggestions Reg.
It is a matter of great pleasure and pride that your goodself is deeply concerned about the economic development of our country and making it the world’s super economic power by utilizing our great potentialities.
If we review the main reasons which are impacting the pace of growth, we find the following :-
(A) Core Problem Areas :-
- The Indian industry has been facing recession for the last about eight years and its profitability has been very poor, leaving no excess liquidity in its hand for expansion and development;
- The poor profitability has resulted into excessive loans raised by it from banks and other sources. This loan liability has created additional burden on it as regards interest as well as principal repayments. This excessive loan has also discouraged it to think about expansion etc.
(B) Remedial Measures :-
The above situation can be rectified if the industry is able to raise funds through Public Issues in the “Capital Market”. Such funds raised would not only strengthen their capital base and creditworthiness but would also reduce the interest burden consequently boosting their profitability.
Unfortunately, the depressed capital market conditions are not encouraging and even the frontline businesses are unable to raise funds from this source. Still, the immediate need is to give boost to the public issues in the capital market.
The Public issue market can be given boost if the strong non-listed public sector undertakings of the Government come forward with public offers at very reasonable or even below intrinsic values. If the general public subscribing to such issues make profit repetitively, confidence in such issues shall improve and would pave way for public offers by other frontline businesses.
(C) Sectors to be Benefited :-
I strongly feel that this single measure would be able to turnaround our economy specially the capital hungury sectors like Mining, Metals, Manufacturing, Insurance banking and infrastructure.
Wishing a great success for your ‘Make In India’ programme.
Yours Faithfully
Rajendra Goyal
