To narrow the rich-poor gap, grow fast: PM

“The primary purpose of development is to get rid of chronic poverty,ignorance and disease which have affected millions of people. But for this,growth must be made truly inclusive,” Singh said after delivering the Khazanah Global Lecture. It is important,he said,to focus on poor areas which lack education,health and other infrastructural facilities.

While it is important to empower the poor,it is also equally important to develop agriculture which still accounts for the livelihoods for more than half of India’s population,he said. “We are increasing our investment in agriculture. We hope to use our scientific capabilities to create a new growth momentum in agriculture through a second green revolution. This is vital for our food security and to ensure an inclusive growth process,” he said.

Also,the future of the economy is going to be knowledge-based. “This can become a productive agent of social change,” he said. “India has increased expenditure on Science & Technology as a proportion of our GDP. We are investing heavily in both basic and higher education. For the last fifty years,India had seven Indian Institutes of Technology and one Indian Institute of Science. In the last five years,we have established eight more IITs and five Indian Institutes of Science Education and Research.”.

Earlier,delivering the lecture,Singh said India’s growth has combined greater openness with an ability to withstand external turbulence. Its economic performance has improved,with the gross national income growing at over 9.5 per cent per annum for three consecutive years starting 2005.

“After the global crisis exploded in 2008,our growth rate slowed down but India was even then among the three or four fastest growing nations in the world. We took a number of measures to stimulate the economy and we expect 8.5 per cent growth in the current year,” he said.

According to Singh,India’s biggest asset is its people,but only if its educated,skilled find productive employment. “At a time when the industrialised world is aging rapidly,India has the advantage of a young population. The dependency burden in India is expected to keep falling for another 20 years. It is expected that in 2020,the average age of an Indian will be 29 years,compared to 37 for China and 48 for Japan,” he said.

Further,with savings and investment which separately account for over 30 per cent of the gross national income,rapid economic development becomes feasible. “For a long time,it used to be common wisdom that only an East Asian country could save and invest more than 30 per cent of its national income. If that be true,then geography notwithstanding,India is today an East Asian country. India now saves and invests well over 30 per cent of its GDP,” he said.

‘Can’t remain slaves of defunct economics’

THEORY vs GUT FEEL:

“I have no definite answer,but I do know Lord (J M) Keynes once said that most practical politicians are slaves to some defunct economics… Real challenge is not to remain slaves of defunct economics.”

CHINA vs INDIA:

“We welcome the growth of China. But there is large enough space in the world to accommodate the growth ambitions of the two countries.”