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Economic sluggishness in Assam: Urgency of more pragmatism -Part- III

Sentinel Digital Desk

By Satyajit Kumar Sharmah Thakur

Have we ever asked what are the present positions of the erstwhile employees of the wound-up/closed-down units like Assam Syntex Limited, Assam Spun Silk Limited, Spinning Mill at Boitamari, The Prag Bosimi Synthetcs Limited and APOL etc.? I can remember very clearly that for a few years since it started its commercial production, APOL had been doing very well, but, it could not sustain that momentum even though those at the helm of the affairs were making all strenuous efforts. True, some of the industrial units in Assam have been doing quite well for quite some time. But they are mainly the industries in the private sector: like Star cement, Dalmia Bharat Cements etc. being a few of that category. But their success can be attributed mainly to the factor that they know it very well that they will have to do all by themselves, and will not get support of the government like an industry in the public sector. If a private transport company can earn profit, what is the reason of colossal loss of the Assam State Transport Corporation? Through ratiolization, in the all the areas of its interl magement, why can ASTC not think about increasing the number of routes as well as increasing the frequency of plying vehicles in the lucrative routes? Can I know from the concerned authority how much is the value of its obsolete stores that have not yet been disposed of, if inventories with very short lead times are abundantly stored, and does it have proper manpower planning, development and control? Can it think about more ratiolized usage of premises, etc. These are out of so many austerity measures that have scope in contributing to the fincial health of the concern and are also the common areas by and large applicable to all the industries for betterment of their fincial health.

It is not that only the government has to play its role for the industrial progress in Assam. For creation of industrial culture: duties, responsibilities and accountability of all the concerned parties must run together. These duties, responsibilities and accountability of both the employers and the employees must be transparent and honest. While employers must consider that the employees are their most invaluable assets, the employees must also justify their earning keeping in their minds that the organizations paying them salaries are not charitable organizations, instead, they can pay salaries provided the employees contribute in a bigger way. They along with a solid interl magement with capability to cope with any challenge and congenial government policies form the real basis for facing any challenge professiolly. The people at large are one of the most concerned parties in this gamut as they may be stake-holders in different forms- like tax-payers and equity share capital-holders, etc.

I am basically a believer of pointing out my ideas that I consider as the solutions of the problems that I dwell on. The existing situation arising out of demonetisation and echo for cashless economy has thrown a bigger and more critical challenge to the state. With a very well-founded and feared probability of a downward trend of GDP: at least in the short term, the people are suffering from their purchasing capability. It will be wrong if in such a situation we do not weigh the blue collar workers properly as well as other daily-wage earners considering that a mammoth size of that populace is illiterate. It is not irrelevant to mention here that they are the worst hit section in the society out of the paucity of notes in the market. Though the objectives of demonetization drive are quite praiseworthy, for customizing the use of debit card, credit cards, etc. the efforts of the Central government has been found to be hasty and without doing adequate groundwork.

In Assam like other states in India, at present the industries in the small and medium sectors are bound to suffer without exception. How long that will exist is also not within easy predictability. After suffering for such a period till a turn-around happens what will be the condition of those industries, is also far from being visualized. Therefore, under the circumstances, I would rather be of the opinion that such ventures which are not very much capital-intensive should be the option of the young entrepreneurs/start-ups.

At present, while demonetization has added to the suffering of most of the private sector industries, some of the costs of these industries are bound to continue besides losing market for want of customers with cash. The scerio to me, is not congenial for digital payment with the pervading illiteracy in the society. Consequent upon the high rate of illiteracy, reluctance is also there to accept that mode of payment so quickly. But we seem to have forgotten that even a single day's loss of production and loss of consumers and continuation of that agony for more than one and half month with uncertainty of an early turround may play such a havoc, that in all fronts including profitability of the entrepreneurs, salaries of the employees, earnings of suppliers of the raw materials, etc., the resultant impact of the same in the economy with far reaching impact even in future cannot be ruled out.

Earlier also, I lamented the lackluster implementation of the Government's much-hyped policies for industrial growth. I even came out with some of the problems specifically with actions which ought-to-have-been taken for redressal of the problems. Here in Assam the unemployment scerio is very grim and is aggravating by the day. If we are not serious about that trend and remedial actions are not taken forthwith, and, instead, if only the political demagogue goes on, far reaching negative impact of that with much more pain day by day will be quite inevitable to the suffering of all concerned in the society, because, while on one hand where there is sluggishness in industrial progress, on the other hand the number of educated boys and girls is very much on the ascending trend. A much-talked-about GDP growth in the third quarter of the fincial year 2016-2017 that has been pegged around 7% is a matter of doubt for me. Whereas some renowned economists are of the view that there will be marked improvement of that trend in the first quarter of the fincial year 2017-2018, yet with the jolt faced by the economy consequent upon the declaration of the demonetization move, to me, such a respite that will show a U-turn in the quarter immediately subsequent to the third quarter of the fincial year 2016-2017 is unlikely. This apprehension of mine has arisen after observing the impacts on persol consumptions and expenditures, investments, net exports and government expenditures which have shown decelerating trends. The observation that there has been considerable downsliding of persol consumption expenditures such as in durable goods, non-durable goods and services, instruments in private housing purchases/residential investments, business investment in non-residential structures, durable equipments and net exports (i.e. exports minus imports) show how GDP has been adversely impacted. Some of the Government expenditures and the Government policies in view of them are indispensible under the prevailing circumstances. Their threadbare discussions encompassing all the factors within will show how deep are the sufferings in all those aspects and an early turround seems to be not in sight. Even though such predictions of GDP figures and effects of demonetization are on all India basis, Assam being one of the states, is likely to be equally affected if not in a more aggravating way.

While there are problems, there are always solutions. We are at a very precarious crossroad. Problems from different fronts will keep on coming if instead of ensuring very pragmatic solutions, the Government sweeps them under the carpet. The present Government should desist from making comparison with the earlier Governments for such economic sluggishness in the state because one of the reasons of voting them to power was to put an end to economic sluggishness. We would like to see the present government in action towards meeting the challenges before it forthwith in a vigorous way so as to respect the purposes of the people's mandate. Needless to mention, towards capital availability, the role of the government should be in right earnest. (Concluded)

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