GDP Growth Will Not Drop Further, To Remain At 5%: PM

The Prime Minister Dr Manmohan Singh seems to be confident about the growth prospects of the country, and in spite of the economic slowdown witnessed by the country in recent past. He expects that India’s economy will see GDP growth of 5% during current fiscal, equivalent to last year. Addressing the inaugural session of the 12th Pravasi Bharatiya Divas in New Delhi, the PM reiterated, “Our economic fundamentals remain strong. Our savings and investment rates are still over 30% of our GDP, and the entrepreneurial spirit in India is very much alive and kicking.” DSIJ is the reporting partner for this prestigious event.

In a bid to dispel the perception outside the country that India was losing its momentum and concerns about social challenges, Dr Singh said that India’s democracy is strong, participative and interactive, the fundamentals of the economy were in fine fettle. He noted that in recent months... “we have also taken a very wide range of decisions to accelerate the implementation of mega infrastructure projects, reform tax administration, improve fiscal management, liberalise foreign direct investments and rationalise the system for allocation and utilisation of natural resources. With greater political support, we could have legislated deeper reform measures - for example, in the financial and insurance sector. However, our decisions are already beginning to make an impact and India is re-emerging as an attractive investment destination. I am confident you will see the evidence clearly in the next few months”.

Dr Singh called for better bonding of non-resident Indians with the parent country and wished them a better future. “We are prepared to assume the international roles and responsibilities that the world at large expects from a rising India. I am also confident that the association between India and its over 22 million roving ambassadors in the expatriate Indian community will continue to deepen and prosper in the years that lie ahead", he said.

The Chief Guest for this year’s PBD is Datuk Seri. G. Palanivel, Minister of Natural Resources & Environment and President of the Malaysian Indian Congress. In his address, Palanivel invited Indian business and expatriates to tap the abundant investment opportunities in Malaysia’s palm oil industry and expressed a desire to work with India in the utilisation of biological resources, education and the financial sector, even as he urged Indian industry to cash in on the exemptions and incentives available in the five super economic corridors in the country.

The Malaysian Minister said that his government was finalising the draft Access to Biological Resources and Benefit Sharing Bill. This bill is intended to implement the provisions of the Convention on Biological Diversity (CBD) regarding access to and sharing of benefits from the utilisation of biological resources.

In his address, Shri Kamal Nath, Minister of Urban Development & Parliamentary Affairs, said that growth has preceded the development of infrastructure in India. Despite a rise in the number of cities, urban infrastructure has not kept pace, and this has emerged as one of the biggest challenges. The government has initiated a number of projects such as the construction of metro rail lines in many Indian cities and is also looking at ways to integrate it with intelligent transport systems, he added. He said that India needs specific governance and management as it is a complex nation. There is a need to adopt and adapt the New India vision.

Shri Anand Sharma, Minister of Commerce and Industry, used the platform to address the problem of lagging manufacturing and the quality of workforce. In his observations, Shri Sharma said that India must work towards becoming a manufacturing hub. In the coming decade, almost 54 million graduates will look for job opportunities. Hence, it is necessary to significantly raise the manufacturing sector’s contribution to the GDP to increase employment opportunities. India, he said, has a dearth of skilled workforce, and therefore, it is necessary to invest in human resources and empower the youth.

Addressing the session on ‘India's Soft Power’, Kapil Sibal, Minister of Communications & Information Technology and the Minister of Law & Justice, noted that the present aspirational India will begin to inspire the remaining part of the globe by 2025, as it will have 900 million people in the working age population, throwing  a lone challenge for successive governments to provide infrastructure and growth opportunities for people to realise their collective potential.

The revenue generated in 2006 through IT & ITeS was estimated at USD 40 billion, which has gone up to USD 100 billion now. Of this, USD 75 billion was contributed by export earnings. This was indicative of the strides made by the Indian economy, Shri Sibal added.

Shri Salman Khurshid, Minister of External Affairs, presided over the session. He urged expatriates to become India’s best ambassadors to spread and popularise the country’s values, beliefs, culture and heritage overseas.