Answer:

Introduction        

The government has looked at a number of revenue-generating opportunities during the last few years, like the government’s non-tax revenues have increased significantly, rising from 2.7% of GDP in 2014–15 to 5.1% of GDP in 2020–21. In this context resource mobilisation aims to meet developmental objectives by encompassing various channels like maximising use of domestic capital & skill, public savings, foreign direct investment, and public-private partnerships.

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Factors Influencing Resource Mobilisation in India

• Tax Structure: India’s complex tax regime often leads to evasion and under-collection. The introduction of the Goods and Services Tax (GST) in 2017 was a transformative step towards simplifying this system, aiming to unify the country into a single market and increase resource mobilisation.
• Financial Inclusion: The Pradhan Mantri Jan-Dhan Yojana (PMJDY) launched in 2014, has recently surpassed the milestone of 500 million beneficiaries; despite this India is among seven countries, home to half the world’s 1.4 billion adults without access to formal banking says a World Bank report (Global Findex database).
• Public Trust in Institutions: Scams like the Punjab National Bank fraud shake public trust and can impact domestic savings rates, which are crucial for resource mobilisation through financial markets.
• Political Will and Governance: Policy decisions, such as demonetization in 2016, have a mixed impact on resource mobilisation, with initial disruption to cash liquidity but enabled long-term formalisation of the economy.
• Infrastructure: Adequate infrastructure is key to resource mobilisation. The Golden Quadrilateral project and Dedicated Freight Corridor demonstrates how investment in infrastructure can facilitate economic activity and resource mobilisation.
• Overseas Investment Climate: The ease of doing business in India, influenced by factors like the Make in India initiative, directly affects FDI flows. Yet, policy inconsistencies can deter investors, as seen in the retrospective taxation cases that involved companies like Vodafone and Cairn Energy.
• Regulatory Framework: The efficiency of SEBI in regulating the capital markets ensures investor confidence, which is critical for the mobilisation of resources through both equity and debt.

Measures to Enhance Efficiency and Efficacy

• Asset Monetization through REITs: Adopting models like Real Estate Investment Trusts (REITs) could help monetize underutilised properties, similar to the successful Embassy Office Parks REIT in India. 
• Green Bonds in Renewable Projects: The issuance of green bonds, which has seen the light with entities like the Indian Renewable Energy Development Agency (IREDA), could be scaled up to fund India’s ambitious solar and wind energy projects.
• Diaspora Bonds: The success of India’s Resurgent India Bonds in 1998 could be replicated to tap into non-resident Indian savings, funding infrastructure and development projects. Through this, India can raise funds from its global diaspora for national-level development projects.
• Government-backed Crowdfunding: Taking inspiration from platforms like Ketto in India, government-backed crowdfunding for public welfare projects could enhance direct citizen participation in resource mobilisation.
• Advanced Analytics in Taxation: Building on the success of the ‘Project Insight’ initiative by the Income Tax Department which leverages technology for tax compliance, further development in predictive analytics can optimise tax collection. 
• Savings Incentives with Small Savings Schemes: Enhancing small savings schemes like the Public Provident Fund (PPF) and Sukanya Samriddhi Account, offering higher interest rates and tax benefits, can incentivize savings at a grassroots level.
• Issuing Municipal Bonds: Learning from the success of municipal bonds issued by cities like Hyderabad and Bengaluru, leveraging debt through such bonds can be a mechanism to manage urban development finances more efficiently.
• Social Impact Bonds (SIBs) for Social Programs: Experimenting with SIBs as done in Rajasthan in partnership with the Tata Trusts, can be expanded to fund social programs across India, with payment contingent on the achievement of agreed-upon results.

Conclusion  

India’s journey towards efficient resource mobilisation is on a promising trajectory. By leveraging innovative financing, technology, and inclusive policies, it is poised to create a robust economy that harnesses its demographic potential and paves the way for sustainable, long-term growth and development.

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