BUSINESS

9 % growth rate not difficult, but very ambitious: Manmohan

CLOSING GAP: Prime Minister Manmohan Singh addressing the golden jubilee function of Indian Institute of Management, Calcutta, on Monday. — PHOTO: PTI

CLOSING GAP: Prime Minister Manmohan Singh addressing the golden jubilee function of Indian Institute of Management, Calcutta, on Monday. — PHOTO: PTI  

IIM students urged to look for solutions to difficult problems

Prime Minister Manmohan Singh has said that the XII Plan growth is very ambitious but not difficult. He said that it was his belief that India had the inherent economic strength to achieve the transition from 8.2 per cent growth rate in the XI Plan period to 9 per cent provided some of the “difficult things need to get there” can be done.

In his address at the Golden Jubilee of the Indian Institute of Management at Joka, near here, he said that many of the challenges were techno-economic.

He said that despite the slowdown in the domestic economy and the global economic situation, India should aim for a 9 per cent growth rate as it was planning not for today but for a five-year period from 2012-13 to 2016-17. He said that India was now capable of repeating the performance of countries like Korea Japan and China, but this would not happen automatically by simply proceeding on a business-as-usual basis.

“There are many difficult challenges we must overcome to achieve the transition to 9 per cent growth. Some of these challenges are themselves the consequence of rapid growth and the structural changes that it brings”.

He said many of these challenges were techno-economic like closing the productivity-gap which exists between India's agricultural productivity and that in other countries of Asia or how to build and finance the infrastructure without which rapid and inclusive growth is impossible and how to achieve energy efficiency and rational energy pricing?

He urged the IIM students to get involved in looking for solutions to these difficult problems.

He said that from being a relatively closed economy, India had become much more open and was viewed as one of the most attractive destinations for foreign direct investment (FDI).

On reforms he said that because of a gradualist approach, it took time for the economic reforms to have an impact.

However, it was now clear that their impact had been remarkable.

“India has been transformed into one of the fastest growing emerging markets in the world. If we can continue to grow at this rate, we are well-positioned to be the country with the third largest GDP in the world by 2025”. Dr. Singh said reminding the management community that these changes have profound implications for them. “As the business managers of the future, you will have a major role in the flowering of Indian enterprise and of Indian brands, not only domestically, but also on the world stage,” he said.

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