must remember that one domestic producer ’ s advantage from protectionist profits is paid for by the consumer, or shows up as another domestic producer ’ s cost disadvantage. instead of targetting specific industries for governmental attention, which risks bringing back all the baggage of the licence permit raj that we have left behind, let us focus on improving the conditions for growth for all. our measure of success should be the jobs that are created, not by giving government subsidies or protections to labour - intensive industries or sectors but by developing a facilitating, though competitive, environment that will result in the emergence of the best solutions. this requires a disciplined focus on four issues : 1. we need to improve the quality of our infrastructure, especially the logistical support and power that industry and services need. grand plans are on the anvil, such as, the delhi - mumbai industrial corridor. we need to complete such projects on time, and within budget. the success of the new delhi metro suggests that timeliness and cost control are not foreign to the indian psyche. 2. our youth need education and training for the jobs that will be created. some of this will be higher degrees, not just computer science but also design or civil engineering. some of it will be appropriate vocational education that teaches them bis central bankers ’ speeches to be good plumbers and electricians rather than unemployable low - skilled engineers. teaching our citizens can be a stepping stone to teaching the world. india can be at the forefront of providing mass technology - enabled education laced with appropriate human inputs to the world. 3. we need better business regulation. this does not always mean less regulation but it means regulation that is appropriate to the objective and that is enforced. i am told that factories in one state are still required to have a snake trap on the factory floor by law, a law that has not been changed since the days factories were surrounded by jungles. the lack of change may be sheer inertia, but it may be more sinister rent - seeking. all too often, we have too much regulation on the books and too little regulation in practice, with the worst of the regulated finding unscrupulous ways around the regulation while the honest are stymied. we have strong labour laws in theory that are meant to protect employees, but in practice we have a very flexible system with no incentive for firms to invest in their workers or hold on to them, and no loyalty towards the firms from workers. this needs to change if we are to

##s ) at a reasonable distance of about 3 – 4 kilometers. such branches should have minimum infrastructure, such as a core banking solution ( cbs ) terminal linked to a pass book printer and a safe for cash retention for operating large customer transactions and would have to be managed full time by bank ’ s own employees. it is expected that such an arrangement would lead to efficiency in cash management, documentation, resolving customer grievances and close supervision of bc operations. vi. the evolution of the bc model comprises of the following four stages : - stage 1 : mobile business correspondents bis central bankers ’ speeches vii. - stage 2 : fixed location business correspondent outlets - stage 3 : low cost intermediate brick & mortar structures ( ultra small branches ) - stage 4 : full fledged brick & mortar branches financial inclusion plan ( fip ) for banks – all domestic commercial banks – public and private sector have drawn a board approved three year fip starting april 2010. the banking system ’ s three year fips include parameters such as : i. no. of branches opened, of which the no. opened in unbanked villages and in villages with population greater than or less than 2000 ii. no. of bc outlets opened iii. no. of basic savings bank deposit accounts opened iv. no. of emergency credit ( od ) provided v. no. of entrepreneurial credit ( kcc / gcc ) provided vi. transactions done in the above accounts through brick & mortar branches as well as through bcs these initiatives are being closely monitored by the reserve bank of india through monthly reporting and annual comprehensive review. financial inclusion plan – achievements so far a snapshot of the progress in certain key parameters in the recent period ( march 2010 – june 2012 ) are given below ( details in annex 3 ) : i. banking connectivity to more than 1, 88, 028 villages upto june 2012 from 67, 694 villages in march 2010. ii. all unbanked villages with population of more than 2000 persons, numbering around 74, 000 are now connected with banks. iii. number of bcs increased to 120, 098 from 34, 532. iv. more than 70 million basic banking accounts have been opened to take the total number of such accounts to 147 million. v. about 36 million people / families have been credit - linked. in the context of this workshop it is important to note that there has long been a statistical system of capturing both macro and micro - level data on measurement of financial inclusion in