President Pranab Mukherjee today expressed confidence that the Indian economy will return to higher growth path of 7-8 per cent in next two to three years and pitched for revitalising investments in the country.
“We are confident that we will return to 7-8 per cent growth bracket in the next two to three years.
“We need to revitalise investment in the country for this purpose,” Mukherjee said at the inaugural session of IFTDO’s World Conference and Exhibition here.
India economic growth was over 8 per cent in 2009-10 and 2010-11 fiscals,but it declined to 6.5 per cent in the following financial year.
Further,India’s economic growth slowed to a decade low of around 5 per cent in 2012-13 mainly due to global slowdown.
“Though our GDP growth in 2012-13 at 5 per cent is the lowest in ten years,it is much higher than that of G-7 countries,” he said.
“International projection point out that our growth will continue to be better that that of these economies for the next two years,” the President said.
Mukherjee further said that while Indian economy cannot remain immune to a prolonged global financial crisis,”we are working hard to reverse the deceleration in growth.”
He said the government is making systems responsive to the industries’ need for facilitation and timely clearances.
On FDI,the President said: “We welcome foreign investment which has a critical role in bringing in modern technology and globalising our economy.”
Investment rate is estimated to be 35.8 per cent of GDP in 2012-13. As per the Economic Review presented by Prime Minister’s Economic Advisory Council (PMEAC),investment capital accumulated in projects is not yielding commensurate output. PMEAC has pegged the GDP growth at 6.4 per cent in the current fiscal.
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“The new world order has made it possible for business to prosper in an open economy. This in turn has unleashed various elements of competition amongst organisations,” Mukherjee said while addressing a gathering at International Federation for Training and Development Organization (IFTDO) World Conference here.
He added,”To meet the challenges of change and competition,there is need to build cutting edge organisations that are lean,agile and responsive,capable of quickly moving to take advantage of new opportunities and remaining ahead of change.”
The power of information and communication technology also needs to be harnessed to create an empowering work culture within organisations.
“For innovation to be successful,the whole value chain,namely,idea generation,conversion,and diffusion need to happen with efficiency and effectiveness,” he added.
Human resource development is one of the most effective ways to bring about organisational transformation for sustained growth.
“We are making our systems more responsive to the industry¿s need for facilitation and timely clearances. A Cabinet Committee on Investment has been constituted to approve,monitor and review major projects for their time-bound implementation,” he further added.
To develop manpower,a National Skill Development Mission has been launched with the goal of skilling 500 million people by 2022 in a public-private initiative.