‘It will take two more years to set right the existing structural problems
Foreseeing that India is going to be the second largest growing economy in the next three decades, former Governor of the Reserve Bank of India Y.V. Reddy on Saturday stressed the need for focusing more on education and health sectors to ensure economic growth. He said that it would take at least two more years to set right the existing structural problems, as the domestic issues coupled with global crisis had badly affected the economy.
“The Indian economy will grow at a rate of 6-7 per cent in the next three decades. The country will be more globalised and the job aspirants will have to face competition from their global counterparts,” Mr. Reddy said while delivering the 15th foundation lecture on ‘Indian Economy: Review and Prospects’ organised by the city-based Kuchibhotla Vasanthi Foundation here.
Observing that the culture of domestic savings had saved the nation from the impact of global recession, he said that in India the domestic savings was over 20 per cent of the total savings. Recalling the economic trends, he said that during the year 1700 the share of Indian economy was 25 per cent of the world economy, which had fallen drastically to 0.9 per cent by the year 1950. In the post-Independence era, India registered the highest growth rate of 8.9 per cent during the period 2003-08, which was followed by the economic slowdown, he added.
Listing out India’s strengths to become the largest growing economy, Mr. Reddy said that there were no financial sector problems here, when compared to developed nations. Even at the advent of consumerism, the savings and investments were being balanced by and large. Innovative private sector, women empowerment and demographic dividends were the other aspects seen by Mr. Reddy.
He, however, observed that there was an immediate need to take up skill development programmes for the youngsters, strengthen the manufacturing sector, besides developing infrastructure and overall standards of governance.
During the interactive session, Mr. Reddy backed the waiver of subsidies and said that continuation of too many subsidies would lead to inflation in the long run. Chairman of the foundation K.S. Kameswara Rao, advisor P. Chiranjeevini Kumari, deputy general manager of Andhra Bank V. Satyanarayana Murthy were present.
Domestic savings have saved the nation from global recession, he says He says that, unlike developed nations, we have no financial sector problems
Domestic savings have saved the nation from global recession, he says
He says that, unlike developed nations, we have no financial sector problems