China Bets Highways.. What's India betting on?

China is betting on infrastructure (read roads) spending to overcome the downturn in the economy (http://online.wsj.com/article/SB122635482375915243.html). Every major economy in the world has announced government spending. But, I am yet to hear anything from Indian government about any ideas that they have. I suspect that the establishment is again planning a passive/lagged role in dealing with the slowdown in the Indian economy.

Why don't these guys understand that India in changing and needs a changed approach (read aggressive) too. We are sitting on a very healthy forex numbers and have all the ability to increase the government spending. Also, there is not dearth of spending opportunities. Government can announce billions in spending on IT, roads and agriculture.

Government spending in IT has become the utmost important thing today in India. If India has to deal effectively with the monster of curruption then they have to go the IT way. The best part is that India already has IT behemoths and we don't need to look out side for help.

Golden Quadrilateral is probably the best government supported infrastructure development that India has seen in my lifetime (~ last 25 years). Mojority of these roads are of really good standard and are in some sense comparable to the 'interstates' in USA. The development should now be taken to the next level with good connectivity between small towns. Most of the towns are living in a real miserable state and a good transport system is neccessary for the development and prosperity to trickle into these place. Remember, that it's in these towns and villages that India resides.

India needs a second green revolution. And this new one should not remain confined to just two states (it was only Punjab and Haryana last time) but should take place in whole of India. Also, the curbs that governments have put on the retail chains (like the one on Reliance Fresh stores) should be done away with. These retail chains are the only hope for Indian farmers today and all that the govt needs to do is.. well they don't need to do anything.. they just don't need to disturb the private sector here. The competition among the retail chains will ensure that the Indian farming scene becomes more efficient and productive.

And the biggest thing of all (how could I miss this one) is the government support/spending for energy sector. I have already spoken a lot on the importance of the sector and there can be nothing urgent than this.