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The India of the 21st century is not the India of the 20th century. With the reforms that began in 1991, we have been able to unlock the growth potential of our nation.
Our economic growth during the decade 2001-02 to 2010-11 was impressive. Our economy grew at an annual average of about 7.8 per cent during the decade, registering nine per cent-plus growth in four years. But the global economic crisis that began in 2008 adversely affected our growth, though we were less affected than most others.
Despite the financial crisis creating virtual mayhem in the largest economies of the world, India was able to withstand the turbulence and register growth of 6.7 per cent in 2008-09. We steered through the rough economic weather and achieved 9.3 per cent growth in 2010-11. Today we are facing increased pressure. It is estimated that economic growth would decline to five per cent in 2012-13.
The decline in growth is indeed a matter of concern. But, in comparative terms, India has performed better than most of the major economies of the world. It is also projected to outperform most major economies in the coming decade.
India's growth story is intact. Its per capita income is steadily rising and India is poised to be amongst the largest markets in the world. The increasing purchasing power of the 350 million-odd-strong middle class would continue to drive demand. I am confident that our economy would be able to achieve seven to eight per cent growth in the next two to three years.
The reform process is on. The Financial Sector Legislative Reforms Commission (FSLRC), set up in March 2011, has submitted its report yesterday.
I also had the opportunity to announce the direct benefit transfer scheme in my Budget Speech for 2011-12. The scheme was rolled out in January 2013.
To promote agriculture, I had outlined, as part of the 2010-11 Budget, a four-pronged strategy covering agricultural production, reduction in wastage, credit support and thrust to the food processing sector.
The policy has spawned positive outcomes. The implementation of the strategy for 'Bringing Green Revolution to Eastern India' has resulted in a significant rise in productivity and production in food grains in the eastern states in the country.
The captains of industry should keep faith in the robustness of our economy and strong fundamentals and raise their level of investment.
For a variety of reasons, private investment has not been very encouraging. Tightening of the monetary policy between March 2010 and October 2011 was necessary to combat inflation. But this led to an increase in cost of borrowing, making it difficult for the private sector to raise capital.
Several authoritative surveys on business regulation and procedures involved in starting business, dealing with permits, enforcing contracts and the like have given India low ranks. What many of our industrialists normally complain about is delays. Industrialists should be seen as wealth creators and their grievances addressed expeditiously.
In reality, growth, to be sustainable, has to be inclusive. The government has taken special measures to uplift the fortunes of the marginalised sections of society. The Right to Education, Employment and Food Security are the three pillars on which inclusive development rests. The National Rural Health Mission has shown very good results.
To facilitate employment creation, we would need better industrial relations. The labour laws of our country should be able to conform to modern business models. They should address the genuine rights and obligations of both the employer and the employee.
A pool of competent technical manpower would be necessary to take forward the 'competitiveness' dimension. Up gradation of our technical institutes has to be accorded priority. The interface between our technical universities and institutes and industry should be strengthened.
This is a decade of innovation. Without it, economic growth would contract. We are lagging behind in innovation and this calls for immediate remedial measures. In 2011, only 42,000 patent applications were filed in India, as against more than 500,000 applications each filed in China and the US. The reason for our poor performance is obvious. India's current expenditure on research and development (R&D) is 0.9 per cent of GDP. In comparison, it is 1.2 per cent for China, 1.7 per cent for UK and 4.3 per cent for Israel.
Our private sector, which contributes only one-fourth of the total spending on R&D, should increase their share, as in many of the leading economies.
The Business Standard Award winners represent the indomitable spirit of innovation and enterprise. I congratulate each one of them and hope that they would continue to inspire the rest of the Indian industry.
Source Data..
The India of the 21st century is not the India of the 20th century. With the reforms that began in 1991, we have been able to unlock the growth potential of our nation.
Our economic growth during the decade 2001-02 to 2010-11 was impressive. Our economy grew at an annual average of about 7.8 per cent during the decade, registering nine per cent-plus growth in four years. But the global economic crisis that began in 2008 adversely affected our growth, though we were less affected than most others.
Despite the financial crisis creating virtual mayhem in the largest economies of the world, India was able to withstand the turbulence and register growth of 6.7 per cent in 2008-09. We steered through the rough economic weather and achieved 9.3 per cent growth in 2010-11. Today we are facing increased pressure. It is estimated that economic growth would decline to five per cent in 2012-13.
The decline in growth is indeed a matter of concern. But, in comparative terms, India has performed better than most of the major economies of the world. It is also projected to outperform most major economies in the coming decade.
India's growth story is intact. Its per capita income is steadily rising and India is poised to be amongst the largest markets in the world. The increasing purchasing power of the 350 million-odd-strong middle class would continue to drive demand. I am confident that our economy would be able to achieve seven to eight per cent growth in the next two to three years.
The reform process is on. The Financial Sector Legislative Reforms Commission (FSLRC), set up in March 2011, has submitted its report yesterday.
I also had the opportunity to announce the direct benefit transfer scheme in my Budget Speech for 2011-12. The scheme was rolled out in January 2013.
To promote agriculture, I had outlined, as part of the 2010-11 Budget, a four-pronged strategy covering agricultural production, reduction in wastage, credit support and thrust to the food processing sector.
The policy has spawned positive outcomes. The implementation of the strategy for 'Bringing Green Revolution to Eastern India' has resulted in a significant rise in productivity and production in food grains in the eastern states in the country.
The captains of industry should keep faith in the robustness of our economy and strong fundamentals and raise their level of investment.
For a variety of reasons, private investment has not been very encouraging. Tightening of the monetary policy between March 2010 and October 2011 was necessary to combat inflation. But this led to an increase in cost of borrowing, making it difficult for the private sector to raise capital.
Several authoritative surveys on business regulation and procedures involved in starting business, dealing with permits, enforcing contracts and the like have given India low ranks. What many of our industrialists normally complain about is delays. Industrialists should be seen as wealth creators and their grievances addressed expeditiously.
In reality, growth, to be sustainable, has to be inclusive. The government has taken special measures to uplift the fortunes of the marginalised sections of society. The Right to Education, Employment and Food Security are the three pillars on which inclusive development rests. The National Rural Health Mission has shown very good results.
To facilitate employment creation, we would need better industrial relations. The labour laws of our country should be able to conform to modern business models. They should address the genuine rights and obligations of both the employer and the employee.
A pool of competent technical manpower would be necessary to take forward the 'competitiveness' dimension. Up gradation of our technical institutes has to be accorded priority. The interface between our technical universities and institutes and industry should be strengthened.
This is a decade of innovation. Without it, economic growth would contract. We are lagging behind in innovation and this calls for immediate remedial measures. In 2011, only 42,000 patent applications were filed in India, as against more than 500,000 applications each filed in China and the US. The reason for our poor performance is obvious. India's current expenditure on research and development (R&D) is 0.9 per cent of GDP. In comparison, it is 1.2 per cent for China, 1.7 per cent for UK and 4.3 per cent for Israel.
Our private sector, which contributes only one-fourth of the total spending on R&D, should increase their share, as in many of the leading economies.
The Business Standard Award winners represent the indomitable spirit of innovation and enterprise. I congratulate each one of them and hope that they would continue to inspire the rest of the Indian industry.
Source Data..
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