At 5.5 per cent, India’s gross domestic product (GDP) growth is better than many countries in the current environment of global economic slowdown, though the focus should be on how the current turbulent times are sailed through, advisory firm KPMG India’s top executive has said.
“Whether it (GDP growth) is 5-5.5 per cent or 7-8 per cent, the most important part is that the country is still growing. If you look at the rest of the world...India is still growing at 5-5.5 per cent, it’s a slower growth but it’s a growth,” KPMG India Chief Operating Officer Akhil Bansal said on the sidelines of AIMA PSU Summit here on Tuesday.
India’s economic growth slipped to 5.5 per cent during April-June 2012-13, the lowest Q1 performance in a decade, because of falling activity in manufacturing, mining and quarrying.
World’s largest economy, the U.S., grew at 1.5 per cent in 2011 (versus 3.1 per cent in 2010) while, Germany’s GDP grew at 3 per cent (3.7 per cent in 2010)
He said the focus should be on how this turbulent journey is sailed through.
On maintaining sustainability for the PSUs in the wake of global economic and domestic slowdown, Mr. Bansal said from the economic perspective, there was no difference for the public or the private sector.
“Public sector being large organisations, they carry little more responsibility than the private sector...it’s more important to maintain survival during this turbulent time for the public sector,” Mr. Bansal said.
However, he said more collaboration between the PSUs and the private sector would accelerate the development process.
Keywords: KPMG, AIMA PSU Summit, Akhil Bansal, Indian economy, gross domestic product, Indian GDP
The growth story of india is still being misinterpretted. Here we have the KPMC chief stating that India, which is destined to grow at 5 to 5.5% is better off than many other countries. The are two aspects due to which i would go against this judgement. First is the fact that the comparision is made with Germany and US which are already developed while India is still a developing country. There is little room for growth in developed as compared to developing nations. We should rather be comparing ourselves with China and Brazil. The secnd aspect is the fact that, in terms of percentages the number 5.5 may seem a good figure, however comparing in terms of volume we are no match to economy giants like USA and Germany. We should come out of this nutshell and make sure reforms are enforced to attain better growth results.
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