India to Achieve “Explosive Growth” says Finance Minister Singh
24 November 2003 - New Delhi, India
India is poised to achieve “explosive growth” said Indian Finance Minister Jaswant Singh in a keynote address at the opening session of the World Economic Forum’s India Economic Summit 2003. Singh told participants that reform policies have “released the creativity of India and returned a sense of confidence” to the nation. The economy is fast approaching a critical point, Singh added. When it does, growth rates will jump beyond the current 6-7% range. The three-day Summit has brought together over 400 participants from 20 countries for interactive discussions under the theme “Enhancing India’s Competitiveness: A Must for Growth.” In its 19th year, the Summit has been held annually in Delhi in partnership with the Confederation of Indian Industry (CII). This year, the Indian Ministry of Commerce and Industry’s Department of Industrial Policy and Promotion (DIPP) are also providing support.
In welcoming participants, Colette Mathur, Director, World Economic Forum, noted that India has emerged as “a strong, balanced partner in world affairs.” The renewed optimism is due to “a psychological change,” said Anand G. Mahindra, President, Confederation of Indian Industry (CII); Vice-Chairman and Managing Director, Mahindra & Mahindra, India. Indians, he explained, have regained their self-esteem. After a dozen years of reform, industry has emerged stronger, more competitive and confident. “We have begun to believe in ourselves – that we can take on the best.” He warned that India cannot afford another false start and must make good on the promise of economic take-off. “We can’t be the boy who cried wolf – or we will be ignored,” Mahindra concluded.
Finance Minister Singh vowed that India would move ahead with necessary reforms. “There is a great deal that has to be done,” he said. “How can you grow if you cannot continuously reform? Reform is not a destination; it is a route.” India’s economic fundamentals, Singh said, are the best they have been in 52 years. He reckoned that current economic growth is sustainable, not cyclical. India’s fiscal deficit is a concern, he conceded. More must be done to boost agricultural productivity to bring about “a second green revolution,” the minister added. India must also develop its manufacturing base to take advantage of the global shifts in competitive advantage.
Singh’s optimism was shared by the Summit Co-Chairs. Participating in the second plenary session which focused on the global economy, the four offered their perspectives on the Indian economy. Henner Klein, Chief Executive Officer Elect, A.T. Kearney, USA, said that, while India would continue to be one of the world’s top destinations for foreign investment, it has to upgrade its infrastructure, pursue privatization and boost its manufacturing sector by leveraging on its IT skills. Carol Bellamy, Executive Director, United Nations Children’s Fund (UNICEF), New York, reminded participants that in pursuing economic growth, it is important to invest in human development. Rahul Bajaj, Chairman and Managing Director, Bajaj Auto, India, said that India stands to benefit from deeper integration with the world. But this process would not be without pain, he cautioned. “We have to try to ensure that growth and prosperity are inclusive.” Finally, N. R. Narayana Murthy, Chairman of the Board and Chief Mentor, Infosys Technologies, India, called on Indian companies to look outwards and develop export markets.
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