While the International Monetary Fund (IMF) has projected that emerging economies including India may not be able to sustain their growth rates under present circumstances,renowned economist,Professor Ajit Singh Professor Emeritus of economics at Cambridge University and a student of Prime Minister Manmohan Singh expressed optimism that the Indian economy will eventually grow at 9 per cent,as it did in 2010-11.
He also termed the rupees free fall as a short-term phenomenon and rejected notions of an economic crisis in India. It is a short term phenomenon,not a crisis. But,it could become a crisis,if the confidence on the Indian business is lost, Professor Singh said.
Highlighting that poverty in India has declined from 40 per cent twenty years ago,to 20 per cent at present,he added: Indias economy grew by 9 per cent in 2010-11,which was remarkable in itself,and the present growth rate of 4 per cent is not as bad,as it seems. We still have a system that works. But,we need to be careful about the risk from foreign changes,citing the recent economic slowdown in USA.
On his recent research on the economic development in China and India,and their implications for the US and world economy,Professor Singh emphasized that it is imperative for India and China to compete and co-operate with each other,if they want leading economists to take notice of them while making major decisions on the world economy.
Both countries need to realise that if the US takes a decision,it will do so without considering its impact on other countries. But,in future,every economic decision will have to based on the analysis of its consequences on these two countries as well, Professor Singh added.
Elaborating on the issue,he said that in 1850,the total share of production of India and China was around 50 per cent,which reduced by 7 per cent in 1950,and at present it is only around 20 per cent. In another 50 years,both these countries will reach that mark again, he added.
Professor Singh has been an economic advisor to various United Nations (UN) developmental agencies,including the International Labour Organization,United Nations Conference on Trade and Development,the World Bank and the International Finance Corporation. In 2012,he was appointed to the highly prestigious Chair at Panjab University (PU),named after the current Prime Minister,Dr Manmohan Singh. In 2010,he was awarded Glory of India award for individual excellence,excellent performance and outstanding contribution for the progress of the nation and worldwide.