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Journalism of Courage
While the government is crying itself hoarse at various fora, trying to convince everyone that an 8 per cent GDP growth is possible over the next five years, industrialists and foreign participants at the just-concluded CII-World Economic Forum on Tuesday said that India would be able to achieve just a 6 per cent growth.
According to a survey of over a hundred participants that was released here, just under sixty per cent of those polled said India will be able to attain only a 6 per cent growth in five years—another 37 per cent said only a 5 per cent growth would be achievable during the period. A mere 4 per cent believed an 8 per cent rate was possible.
According to the CII-WEF survey, 94 per cent of the corporate world’s representatives felt India cannot exceed China’s competitive edge by 2007. The good news, however, is that despite this, 86 per cent said they would be increasing their investments.
All the business leaders felt privatisation had a positive impact on the Indian economy and 88 per cent of them agreed that their respective sector would become internationally more competitive in the next five years. Calling for greater regional cooperation, 92 per cent of the respondents said that this was the key towards furthering economic development of the country.
A little over half the business leaders felt their industry was suffering from the current geopolitical uncertainties in the region, referring to the current tensions between India and Pakistan.
Meanwhile suggesting measures to achieve 8 per cent growth rate, captains of Indian industry said that this was achievable by speeding up second generation reforms and massive investments in manufacturing and agriculture while focusing on enhancing competitiveness.
Pointing out that reaching the magic number of 8 per cent would require massive investments in agriculture and manufacturing, the India Inc also suggested cutting down wasteful expenditure coupled with increase in savings and investments as a part of its 19 recommendations to achieve the growth target.
Stating that the recommendation paper was not just a document for government to implement, CII President Ashok Soota said the responsibility of implementation also lay with business community if the such a growth rate had to be achieved.
On its part, the few government representatives present at the CII-WEF meet said the government is considering several measures to simplify investment norms including removal of redundant laws and ‘re-engineering’ of regulatory processes at the state level to reduce delays.
‘A committee set up to look into the simplification of investment procedures has just submitted its report to the government for further action. Its recommendations include removal of redundant laws, making procedures automatic wherever possible as also simplification at the state level’, Industry Secretary V. Govindarajan said here.
Addressing a session on exports and FDI at the ongoing India Economic Summit, he said the committee had also suggested a single window agency at the state level.
