CAN WE MAKE INDIA'S UNEMPLOYMENT RATE TO ZERO?

Without much of a conversation or controversy we can boldly say that in another few years we can eradicate unemployment from India. If our government wishes, it can be easily achieved without much of an investment through the annual budget allocation. Hence the government do not have any bearing on this. However the government has to take a decision in this regard. It should be like this:

1. No collateral security should be asked for by banks for loan upto five crores. There are good number of highly intelligent engineers and technicians and also qualified youth from other branches of education who are unable to offer any collateral security to avail the loan for any manufacturing or service industry. If timely help is not extended to these youngsters they may perish with their dreams. They would otherwise become great asset for this country.

2. Selected insurance companies may offer guarantee to the bank for the loan amount upto five crores on behalf of these borrowers. Since the insurance company can closely follow up with the borrower, these companies may not cause any risk of the loan amount to the bank. They would be fully equipped to control every action of the borrower.

3. Authorised officials of the Insurance companies shall have to approve all payments made by the borrower. This arrangement will help them to ensure the quality and price  of every purchase made and also avoid any misuse of the loan amount.

4. Authorised official of the Insurance company shall be the joint signatory of payments drawn from the bank. This can assure proper coordination among the insurance company, the bank and the borrower. Every transaction can be tracked instantly and corrective action can be taken as and when required.

5. Insurance company shall ensure that the borrower is not drifting towards any loss. With this close watch insurance company can prevent the borrower from falling to a collapse, thereby making any default with the bank.

6. The Insurance company may take a reasonable service charge from the borrower as well as from the bank. This arrangement if appropriately followed, the insurance company can make an income from this too.

7. The borrower should deploy a given number of unemployed youth in his firm. If properly managed this is the one that eliminate unemployment from our country. As per available information over 45 million people are unemployed in India now. They all can be suitably deployed.

If this can be properly implemented the following would be the outcome.

1. The unemployment rate can be brought down to zero.

2. Huge quantity of goods can be exported and thereby export revenue can be multiplied and the balance of trade shall have a tremendous growth.

3. Since these huge number of people are going to make a reasonable income shortly, the government will certainly have a considerable income from various sources of taxes and may have multi way gains.

Irrespective of the  considerations and affiliations the central and state governments jointly along with the people as a whole can together put their best efforts to achieve this as early as possible. This will certainly change the shape of our country.

K V George