◄ ◄ Back to Industry News
Top
‘It will always be political economy’: Sitaram Yechury
Politicians cutting across party lines feel reforms and politics cannot be separated from each other in a democracy. This came to light at the CII National conference
At a session on ‘Inclusive and sustainable growth and coalition politics’ during the two-day conference on ‘Building people, building India’, held by the CII, the question taken up for discussion was “Can reforms be apolitical?” The discussion chaired by Shekhar Gupta, editor-in-chief, Indian Express Newspapers (Mumbai) Ltd, had Kapil Sibal, minister of science and technology, Sitaram Yechury, MP and politburo member, Communist party of India and Arun Shourie, a media person and MP as panel members.
Introducing the session, Shekhar Gupta remarked, “In a democracy, nothing can sustain unless it is political.” However, he was quick to add that it is good that reforms are getting politicised. Yechury, who acknowledged of India treading on growth path, said while on one hand we have shining India; on the other hand there is acute mass poverty.
Referring to a recent report that said 78 per cent of Indians live in less that Rs 20 per day, Yechury added, “Of this, close to more than one-third live in Rs 12 per day. So, when you are talking of inclusive growth you must realise this dimension. If this is a macro picture, how are we going to bring about this inclusiveness in growth? And this is not possible without intervention, mainly state intervention. But I am not taking of only state intervention. It has to happen and will not happen through normal processes of market being the driving force,” he said.
In a country where more than 800 million people live in less than Rs 20 per day with an urban population that has gone up from 18 per cent to 28 per cent, the disparities are huge. As put succinctly by Gupta: “Growth produces inequality.”
Sibal felt that it is naïve to say reforms and politics can be divorced from each other and that true driver of growth in this country has to be technology. “Impetus of growth comes from technology if you see anywhere in the world,” he said. Shourie said, “Today, growth is more skill inclusive. There should be partnership in vocational education.”
Yechury concluded that there is no abstract or pure economics. It will always be political economy. “So, we have to define the political object. Growth has to be sustainable which has to be inclusive and non-inflationary,” he said. Top
“Demographic dividend theory is dangerous’
The Skills session at the CII National Conference held in New Delhi on April 29-30 saw some of the young parliamentarians debate the educational system in India. It turned out, as a member of the audience later commented, a consensus session, rather than a debate. All were agreed that education is in a mess, there was much harmony, everyone seemed to be in one mind irrespective of political leanings.
The panelists, among them Sachin Pilot, and Suresh Prabhu (How can he be counted among the young?) had Sagarika Ghose as their moderator, and the questions that came up were more apt for a TV studio session. Here’s a sample, she asked, “Sachin, you are from Stephens, I am from Stephens. Do you think the degree is relevant?”
Suresh Prabhu, who has held portfolios like environment, pointed out, “We have a large number of people but they are not gainfully employed. The demographic dividend theory puts premium on more people. This is dangerous. Because the natural resources don’t increase, land and water don’t increase. Merely increasing number of people won’t help.” He added, “We are young today and therefore enjoy comparative advantage. But we are also going to age."
Mohammad Salim of the Left discussed the issue of degreeholders being unemployable. Pointing at the biggest problem in vocational education, he said people didn’t want to go for vocational education because the social and economic ladder is not available to those with vocational qualification. The vertical mobility is not ensured in this country, unlike in Germany and Korea.
BJ Panda of Biju Janata Dal added that the corporates are desperate for talent and at the same time a large number of people are knocking at the door.
The issue of public vs private role was also taken up, with Salim saying that the private sector should educate classes, and the government should educate masses. On the other hand Panda said there was nothing wrong with the government stepping back and letting the private sector enter education. He took up the issue of education vouchers, which would enable students to choose an institute. Prabhu felt that the classification of people into classes and masses actually hindered the masses from having access to classes. Instead of having that distinction, the solution, according to Prabhu, is in making quality the cornerstone of education. “Make sure the quality is not diluted.” Top
‘With you, if possible, without you, if necessary’: Chidambaram
Union finance minister P Chidambaram sounded a warning of sorts to the Indian Industry that the government was ready to resort to strict measures to curb inflation, and said that it may have to do so “with you, if possible, without you, if necessary.” He was addressing the CII National Conference in New Delhi on April 29. He did some plain speaking with the industry and said, “You may have to take that hit for long-term gain… At times short-term gains cloud long-term vision.” He assured the industry captains, “When the tide rises, all the boats will rise.”
He pointed out the unique situation that the country was in. It was facing a four-fold crisis: financial crisis, food crisis, fuel crisis and fiscal crisis. He said, “In the middle of these crises, we need to ensure that the momentum of growth acquired through hard work is not lost. We can’t afford to grow at less than 9 per cent, because then we won’t be able to create jobs that we need to create, we won’t be able to allocate funds for progress that we need to allocate.”
Speaking about availability of food grain situation, he said in the last two weeks the situation had improved. He assured the gathering, “There is enough foodgrain in the country.”
Regarding fiscal situation, he said, “Our position is the envy of many countries. We have done remarkably well in fiscal prudence in the last few years.” Top
At least 3% of IPL money should be diverted toCricket Infrastructure : ASSOCHAM
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has suggested diversion of even 3% of whopping amount collected from the IPL towards upgradation of cricket stadia which would bring India among countries with the world's best international cricket grounds. This is significant specifically in view of the next cricket World Cup being hosted by India besides the other subcontinent countries including Pakistan, Sri Lanka and Bangladesh in the year 2011.
While the seating capacity of the Indian grounds is on par with the best in the world, the infrastructure is not equally matched vis-à-vis the other internationally renowned cricket stadia. With the commercialization of cricket in form of IPL bringing hefty money to the game, attention needs to be paid towards building the infrastructure. Upgradation of one stadium requires an average investment of Rs.30 crore. Thus, about Rs. 300 Crore ($75 million) investment is required to bring the existing ten grounds to international standards, according to ASSOCHAM President, Mr. Venugopal N. Dhoot. This is 3 per cent of the amount close to $2.1 billion been raised from sponsorship, team ownership and broadcasting rights
The Chamber has also recommended setting up of two fully modernized cricket grounds in the Tier II cities. Also, India should have one indoor stadium in lines of the Telstra dome stadium in Melbourne which can be used as a venue for the important matches of the world cup to deal with the rain interruptions, adds the ASSOCHAM Chief, Mr. Dhoot.
The IPL T-20 as a format has been taken on the idea of English county cricket. While the Average capacity of the nine IPL grounds (almost 58000) in India are far more than the 18 county cricket grounds in England (around 14000), the per-head ground facilities should match with the seating capacity of the grounds. Uninterrupted power supply to the stadiums should be ensured. All the grounds should have big electronic scoreboards and display screens.
Majority of the Indian cricket grounds face basic infrastructure problems like parking facility, sanitation, food and security. ASSOCHAM laid emphasis on providing adequate sanitation and food facilities in the ground. Parking facility, ticketing counters, security, ground support staff should also be more efficient.
The technical equipments including world class pitch covers automated in nature, rain water removal machines, dew controlling measures (hovercrafts) should be used to raise the standard of the cricket grounds.
The game formats such as IPL, provide a good opportunity to attract domestic and foreign tourists. Hence, the decision makers need to facilitate building of new budget as well as luxury hotels and increasing the capacity of existing hotels. Adequate medical facilities should be ensured near the cricket grounds.
Transport connectivity remains a major issue even in the metro cities of India. Special bus services shall be started to facilitate the smooth tourists' movement across the city during such big sport events.
The successful bids in the IPL have seen some unprecedented figures in the history of the game. The broadcasting rights being sold for $918 million, the right to own the eight teams for $723 million, sponsorship for $500 million and the players for $42 millions. Looking at these numbers ASSOCHAM feels a big step needs to be taken to upgrade the infrastructural facilities of the Indian cricket grounds.
Organizing of big-time sport events call for good amount of capital expenditure in building infrastructure in any country. Investment to the tune of $112 million would be made in infrastructure (building, renovating stadiums plus training facilities) for the FIFA World Cup 2010 to be held in South Africa. Top
Addressing inflation is our immediate challenge: Prime Minister
Addressing the Inaugural Session of CII's National Conference, the Prime Minister Dr. Manmohan Singh said that the immediate challenge facing the country is the increase in global commodity prices, especially the price of food and petroleum products, over which we do not have much control. Otherwise, he was confident that the long term and medium term picture for India remains highly encouraging and the prospect for domestic growth remain good.
He said that the world community has not done enough to address the challenge of rising prices, as the diversion of land from food crops to bio fuel has contributed to the rise in food prices. The challenge of food security and the problem of rising oil prices need to be addressed together. He expressed his concern that the global response to the current energy crisis has been far from adequate and compares poorly with the response during previous crises in the energy sector.
He asked industry to co-operate with government to ensure long-term stability of the growth process. He said that industry leaders, particularly in sectors where significant market power lies in the hands of a few producers, have a social obligation to assist the government in moderating inflationary expectations. He made clear his expectation that industry should absorb the rise in input costs, to the extent possible, by laying emphasis on improved productivity.
The Prime Minister then expressed his concern about the instability in the global financial system caused by the sub-prime crisis and the recession in the United States. Greater consultation is required to address the structural weaknesses that continue to plague the functioning of the financial system in developed markets. He said that India's voice should be heard globally in matters ranging from the management of the world food economy and the energy economy to issues such as climate change and the global financial system. He said that he expected Indian industry to be at the forefront of efforts to promote the use of environment friendly and energy efficient technologies and processes.
The Prime Minister appreciated the role played by CII in addressing the skill shortage being faced by India today. He recognized that improving the skill base of our people is the first step in building the nation. The government, on its part, has increased several folds the funding for primary, secondary and tertiary education. He urged active participation from State governments, local governments, civil society and the private sector to translate these higher outlays into better outcomes.
Finally, he called for greater political consensus for making government more productive, creative and effective. He said that CII has played a useful role in developing some nationally accepted norms of governance that has helped the government to overcome the limitations imposed by a fractured mandate.
In his welcome address, Mr. Sunil Bharti Mittal, President, CII and Chairman and Group CEO, Bharti Enterprises, said that industry is keenly aware of the challenge of inflation. According to him, industry will continue to build capacity irrespective of the global slowdown or the rise in commodity prices. This is likely to have a moderating effect on inflation in the medium term. He emphasized the role the government can play by putting infrastructure development on the fast track. Mr. K V Kamath, Vice President, CII and Managing Director and CEO, ICICI Bank, echoed similar thoughts. He said that industry will play a key role in ensuring that productivity growth remains high and India remains one of the fastest growing economies in the world. As in the past year, CII would be happy to take forward the government's agenda of inclusive growth. Top
Kamal Nath Identifies Three Challenges Faced by the World
Mr. Kamal Nath, Minister of Commerce & Industry, Government of India identified three challenges facing the world today. The challenges identified by Mr. Nath are food, fuels and fertilizers. Speaking at the session on "Globalisation the New Mantra, But How do we Remain Competitive?" at the CII National Conference and Annual Session 2008 here today, he said the ongoing global food crisis is because of the growing use of agricultural land for bio fuels production. He further added that his Ministry is forced to ban rice exports to safeguard Indian interests.
Mr. Nath said greater engagement with the world has led Indian industry to become globally competitive. While congratulating the Indian industry for living up to the challenge he said the world had started taking note of India since Indian industry has become globally competitive.
Mr Nath said that India's engagement with major trade partners for concluding free trade agreements was also helping in making industry in the country competitive.
Mr. Nath also stressed on the inevitability of Eastern countries as drivers of world growth. He said along with the US, the East Asian economies of Vietnam and Thailand have now become engines of world growth.
On inclusive growth he said sharing the benefits of globalisation with 300 million people living below one dollar a day remains the biggest challenge for India. He further added that transformation of rural India is the next biggest revolution waiting to happen in India.
Earlier Mr. Kamal Nath also released the new CII tie.
Ms. Doris Leuthard, Federal Councillor & Minister of Economic Affairs, Switzerland said her country has greatly benefited from globalisation and said that despite being a small country trade has helped Switzerland to become a medium sized super power. She expressed happiness over greater bilateral engagement between India and Switzerland and divulged the information that negotiations for broad based bilateral trade and investment between India – EFTA have started in January.
Earlier Mr. KV Kamath, Vice president CII said last two years have seen coming of age of Indian industry and said that last year outward investments from India were more than inward investments into India. On problems of globalisation he said globalisation has led global problems to become local. Top
Multi-faceted approach of the programme would lead to inclusive growth : Sonia Gandhi
Mrs Sonia Gandhi, Chairperson, UPA launched the CII Healthy & Educated Villages Programme today at the CII National Conference and Annual Session 2008 at New Delhi. A dedicated programme website and brochure was also launched by Mrs Gandhi on the occasion.
CII Healthy Villages Programme represents the aggregated efforts of various corporates towards their corporate social responsibility.
While commending CII's initiative in transforming the rural healthcare in the country through this singularly momentous programme, Mrs Gandhi said that expanding and improving rural health infrastructure in the country would have positive and far-reaching consequences and lead to nation's inclusive growth.
Mrs Gandhi commended the multi-faceted approach of the CII Healthy & Educated Villages Programme, which integrates primary education with all the components vital for the health of every community.
While stating that the National Rural Health Mission launched by the UPA Govt has begin to make a difference, Mrs Gandhi acknowledged that there is a terrible lacuna in healthcare delivery, especially in the Northern parts of the country and that the National Rural Health Mission and Public Private Partnerships could collectively meet the daunting challenges ahead and ensure "better health for all".
Mrs Gandhi said that more corporate citizens should be involved in this initiative. She also suggested incorporating health insurance to serve the larger public cause.
Earlier, while welcoming Mrs Sonia Gandhi at the launch ceremony, Mr Sunil Bharti Mittal, President CII and Chairman & Group CEO, Bharti Enterprises, said that the foundation of Industry's participation in nation building was laid by the late Prime Minister Rajiv Gandhi and Mrs Gandhi also has aam aadmi's interest close to her heart. UPA Govt's flagship programmes such as Bharat Nirman and the National Rural Employment Guarantee Act are directed towards building rural India and CII was privileged to have her presence at the unveiling of such a significant initiative, Mr Mittal added.
Dr Naresh Trehan, Chairman, CII Task Force on Rural Health, while explaining the significance of the CII Healthy & Educated Villages Programme said that India had committed to provide minimum standards of healthcare to all its citizens by the year 2000 under the Alma Ata Declaration of 1978. However, India is dismally lagging behind and we need to make an investment of USD 25 million over the next 10 years to meet the commitment. As the cost of healthcare delivery is huge, especially in India, corporates have come forward in order to reduce the disease burden.
Dr Trehan enumerated the benefits of the pilot project undertaken under the CII Healthy & Educated Villages Programme at Joniawas Village in the NCR region and stated that a simple intervention has reduced incidence of infectious diseases in the village by 70%. Dr Trehan urged more corporates to join in creating a healthy and educated rural India.
While thanking Mrs Gandhi for her presence, Mr K V Kamath, Vice President, CII and Managing Director & CEO, ICICI Bank Limited, said that CII has always been an active partner in promoting inclusive development - working in sync with the national priorities and leveraging industry's strengths for increased engagement with rural India. He added that investment in human capital would help the country to maximize the potential of its most productive resource – its people. Mr Kamath also said that the CII Healthy & Educated Villages Programme would improve accessibility of equitable, affordable, accountable and effective primary healthcare to the rural population of India. Top
Sheila Dikshit gives away CII Woman Exemplar Awards
Shrimati Sheila Dikshit, Chief Minister of Delhi, at the CII National Conference and Annual Session 2008, gave away the CII Woman exemplar Award. The award which has been institutionalized since 2005, promotes women empowerment at the community level by discovering and recognizing those who have, against all odds contributed in the fields of Primary Education and literacy, health and Micro Finance, thereby making a significant contribution to the development process in India.
The awards have been conferred upon three such talented women namely Shahana K T in the field of Education, N. Nanda Devi for her work in Health sector and S.Dhanalakshmi for her commendable work on Micro Enterprises Project. The awards which were sponsored by ICICI Bank Ltd, are called exemplar because, the talented awardees set an example for others, ignite their spirit and the belief that others too can be empowered.
Speaking at the occasion, the Chief Minister expressed her confidence that Delhi, the capital of India will be ready by 2010 for the Common Wealth Games. While highlighting on the achievement and development that has been expedited in the past few years, she admitted that a lot more still has to be done.
The Chief Minister pointed out several plans which are underway to give the city a complete makeover before the Commonwealth Games. Prominent among these are an initiative to make ecological friendly building and thereby making Delhi a green city, initiatives by Ministry of Sports to form various committees that would cater to the need of Common Wealth games and privatization of blue line buses by corporate houses which can be seen in a year or two.
While admitting the implementation and conceptual defects in the BRT Corridor plan, she said that the plan didn't take the type of vehicles as many as 28 and discipline sense of the public into account. However, she was extremely confident and determined that the project would eventually succeed.
Earlier, Mr. Jamshyd N Godrej, Past President CII, Chairman and Managing Director, Godrej & Boyce Manufacturing Co Ltd, in his opening remarks said that the challenge of Urbanization for the Capital is huge and pointed that Transportation, Housing, Water and Sanitation will play a major role in taking Delhi forward towards prosperity.
Addressing the challenges that Delhi faces today, Shrimati Sheila Dikshit acknowledged Street Children as one of the most important challenge and urged that there is a need for many more initiatives such as "Aap ki Rasoi" which cater to feed the destitute children and their family for free. Top
Need To Revamp Global Governance System: Mr. Pranab Mukherjee
There is a need to revamp global governance system especially global institutions like IMF and World Bank according to Mr. Pranab Mukherjee, External Affairs Minister, Government of India. Speaking at the session on "India's Foreign Policy" at CII National Conference and Annual Session 2008 here today, he said a changed global order has created new challenges in the globe such as terrorism, environmental degradation and proliferation of weapons of mass destruction. To make sure these global challenges don't create social upheavals there is a need to have a broad based global strategy encompassing all the countries. He added that the ideal strategy should be to create interdependence and create stake holders in each others development.
He said India's foreign policy has been based on values and civilisational heritage and is not aimed at territorial expansion or at exporting ideology. He further added that commitment to non – proliferation and responsible use of nuclear technology has been corner stone of India's global strategy.
Mr. Mukherjee said with rapid economic growth and increased share in world trade, India has an increased stake in world economic order. He also added over the years India has remained active in collaborating with globe in fights against terrorism and in United Nations peace keeping.
External Affairs Minister said country now enjoys good relationships with all global powers and added that India is now a strategic partner with almost dozen countries along with European Union. He however said this strategic partnership is not at the expense of other countries. He said India's trade ties with regions of SAARC, BIMSTEC, ASEAN and IBSA are improving rapidly.
On trade Mr. Mukherjee said India remains committed to Multilateral trading system and expressed hope that the ongoing Doha Round will meet its development dimension. He said because of increased oil prices India now has to engage in oil diplomacy with countries such as Nigeria. He said India is conscious that rapid economic growth increases demand for energy consumption and places pressure on carbon content in the atmosphere. He expressed India's commitment to fight climate change especially through adaptation and technology transfer.
In an increasingly business driven world he said Indian diplomacy would get more business oriented and added government's policy is focussed on securing increased trade and investment in areas of infrastructure and for securing energy supplies and access to technology.
Mr. Mukherjee also gave away CII President awards.
Earlier Mr. Sanjiv Goenka, Past President CII and Vice Chairman, RPG Enterprises complimented the Minister for his statesmanship. Top
Narendra Modi invites Private Investments in Gujarat
Addressing the Special Plenary on "Development through Growth: Challenges of Governance" at CII National Conference and Annual Session on Building People: Building India, Mr. Narendra Modi, Chief Minister of Gujarat said that Gujarat has been consistently the number one state in industrial development on account of political stability.
According to Mr. Modi the State should be policy driven to avoid any grey areas and scope for interpretation and this helps in reducing corruption. Gujarat is the first state to create SEZ Policy, has largest area under SEZ and there is not a single case of dispute in the SEZ implementation in the state, he said. He mentioned that the state could manage 12% growth in Agriculture in spite of lack of adequate natural resources while the nation is striving hard to achieve 4% growth. The state has surpassed 10.2% growth target set by planning commission and has achieved 12.4% growth rate, he said.
Mr. Modi opined that the idea is not just to create wealth; the development should be by all and for all to ensure inclusive growth. Gujarat believes in development through PPP mode. Gujarat is the only state to manage 24 hour uninterrupted power supply in villages and is all set to ensure broadband connectivity in all the villages going forward. The state of Gujarat is moving from ship breaking to ship making state. Technology driven growth and development through employment generation has been the focus of Gujarat, he said.
Gujarat provides best infrastructure and conducive environment for business he emphasized. The state has created Knowledge Corporation, upgraded 500 ITIs and propose to train 25 to 30 lakh student in Soft skills to ensure supply of quality manpower to sustain the growth momentum, he declared. He urged Industry Captains to invest in the State of Gujarat.
Mr. Modi said that Gujarat believes in R- Urban Development through mix and balances of urban amenities in Rural environment. The State Government is working on the concept Children University for the empowerment of the children in today's set up of nuclear families.
Earlier Mr. Sunil Bharti Mittal, President CII and Chairman & Group CEO Bharti Enterprises in his welcome address said Gujrat is aiming at 15 % growth when India talks of 8 – 9% growth, the vibrancy of the Gujarat economy is exemplary, the state has the maximum tele density and is the biggest center of exports of fruits and vegetables today, he mentioned.
In his concluding remarks Mr. K V Kamath, Vice President CII & Managing Director & CEO, ICICI Bank Limited assured CII support in all growth initiatives in the state of Gujarat, CII would work in close partnership with state government in its economic developmental activities. Top
Speech by Shri L.K. Advani, Leader of the Opposition (Lok Sabha)
Shri Sunil Mittal, President of the CII; Shri K.V. Kamath, President-Elect of the CII; captains of Indian industry and business, ladies and gentlemen,
It gives me great pleasure to be once again with you at an annual conference of the Confederation of Indian Industries (CII).
Over the years, the annual session of the CII has become an important platform for people from the political and business fields to meet together and exchange ideas on issues of common interest concerning the nation.
Yesterday, Prime Minister Dr. Manmohan Singh addressed your session. He sought political consensus and help from the industry to fight inflation. "For government to be more productive, more creative and more effective," he said, "we would need greater political consensus and some nationally accepted norms of governance in our Parliamentary system."
There is nothing wrong in what the Prime Minister said. However, apart from telling what the industry should do and what the Opposition should do, I wish he had also told the nation what his government is doing to bring the prices of essential commodities down. For people want to see results on the ground. After all, sound management of the economy is a core responsibility of the central government.
The nation would also have liked to know from the Prime Minister what "nationally accepted norms of governance" the government is following on certain crucial issues. If a minister thinks that it is a part of his duty to seek favours from another ministry for businesses owned by his son, and if the Prime Minister chooses not to make a statement on the issue in Parliament, it is my understanding that neither the minister nor the Prime Minister is following a "nationally accepted norm of governance in a parliamentary democracy."
Consider the contrast between the manner in which corruption-tainted ministers are being protected today and how none other than Feroze Gandhi - the least remembered member of the Nehru-Gandhi family and one who lent the 'Gandhi' name to the family - forced his father-in-law to drop a corrupt minister in the 1950s. The business community would surely remember the infamous Mundhra scandal which was exposed in Parliament by Feroze Gandhi, who was a Congress MP. Prime Minister Jawaharlal Nehru had to agree to appoint a commission of inquiry, headed by Justice M.C. Chagla. Justice Chagla's report held Finance Minister T.T. Krishnamachari morally responsible for the episode and the latter was forced to resign in 1958 - that is, exactly 50 years back.
The public hearings conducted by Justice Chagla remain an unsurpassed case of enforcement of probity in public life. I would like to remind the Prime Minister of two points that Justice Chagla made in his report, both of which have been scornfully ignored by the UPA government.
Firstly, "In a parliamentary form of government, Parliament should be taken into confidence at the earliest stage to avoid embarrassment from other sources of information."
Secondly, "The inquiry has been an education for the public. It should also act as a corrective to administrators all over the country, because in future they will act with the consciousness that their actions may be subjected to public scrutiny."
Prime Minister Dr. Manmohan Singh's personal integrity is beyond doubt. However, it is now equally beyond doubt that he is neither able nor trying to enforce probity in his government. In dealing with corruption in his government - and it is now common knowledge that the UPA government is by far the most corrupt in India's history - he is exhibiting the same helplessness that he earlier did in acting against crime-tainted ministers.
Corruption is a foe of pro-poor growth
I have made this point because it is closely linked to the theme of my address today - 'Building India : Making Growth Inclusive and Sustainable'. It is my firm belief that corruption is one of the biggest obstacles to inclusive and sustainable growth. Indeed, corruption in governance, especially corruption in high places, results in malignant growth. It leads to moral degradation of politics and society, which cannot be measured in quantifiable terms.
The case of the minister seeking gas supply at concessional rates for businesses run by his sons is only a tip of the iceberg. Many representatives of the business community tell me privately how the UPA government stinks with corruption, how several ministers run their ministries as their own fiefdoms with no command or control, and how this is undermining India's development drive and India's international reputation.
Friends, the true strength and resilience of democracy lies in the integrity of the leaders in the top rung of various democratic institutions. In his excellent analysis of the Watergate episode, The Fall of Richard Nixon, Theodore H. White has made this perceptive observation:
The true crime of Richard Nixon was that he broke the faith that binds America together and for this he was driven from power.
The faith he broke was critical - that somewhere in American life there is at least one man who stands for law. The faith holds that all men are equal before the law and are protected by it; and no matter how the faith may be betrayed elsewhere by the ugly compromises of daily striving, at one particular point, the Presidency, justice is beyond the possibility of a fix.
What this means in the Indian context is that, the Prime Minister must not only be incorruptible himself, but should also strive his utmost to ensure that his team is also incorruptible.
NDA's proud record of uncaging 'India - the Caged Tiger'
Friends, today is the last day of April. Next month, the Congress-led UPA government will complete four years in office and enter the fifth and final year of its tenure. It is for different sections of society, including the business community, to judge the performance of the UPA government. However, what I have observed during my travels around the country is that the people are looking for change, for a better alternative. And I can say with full confidence that, with each passing month, it is the BJP and the BJP-led NDA that will emerge as the real alternative.
My party and our alliance, under the leadership of Shri Atal Bihari Vajpayee, contributed to India's growth and development between 1998 and 2004. We shall do so yet again, if the people give us the mandate in the next Lok Sabha elections.
Let me give a few snapshots of how our government not only accelerated India's economic growth but also tried to make it more inclusive.
- The NDA government unveiled the most ambitious highway construction programme in the history of independent India. This has transformed India's economy like no other single infrastructure project ever has. Earlier, India had very few construction companies capable of executing world-class highway building projects. I am told that, because of the Golden Quadrilateral project, their number has increased dramatically.
- Our government embarked upon the most ambitious rural roads development programme in the history of independent India. The number of direct and indirect jobs created by the highway and rural roads projects is, indeed, staggering. Moreover, these above measures contributed to greater physical connectivity, and thus literally paving the way for a more nationally integrated economic system. Top
- Similarly, our government brought about the most far-reaching reforms in the telecom sector, without which the current spectacular expansion in telecom connectivity would not have been possible. I am sure both your outgoing president and incoming president will vouch for this. Shri Kamath was a member of the group that formulated the New Telecom Policy 1999, and Shri Sunil Mittal has practically demonstrated how the new policy unshackled the Indian private sector to bring mobile phones within the reach of the common man.
- Our government provided the most crucial policy incentives to the information technology sector and, way back in 2000, set a target of $ 50 billion for software and services exports by 2008. I am happy that our IT companies are close to reaching the target, in spite of adverse international conditions recently. What is especially heartening, and what testifies to the inclusive nature of this growth, is that IT has become an essential part of the dream of young Indians belonging to all classes, castes, creeds and regions of India.
- Our government not only enshrined elementary education as a Fundamental Right in the Constitution but also, in order to operationalise that right, unveiled the world's largest elementary education programme in the form of 'Sarva Shiksha Abhiyan'.
- Our government initiated the world's largest food security programme, under which over one crore poorest families started to get a certain amount of rice and wheat at highly subsidized rates.
I must make a special mention here of our government's bold decision to conduct nuclear tests at Pokharan in 1998 and make India a nuclear weapons power. This not only strengthened India's national security but also immensely contributed to India's heightened profile in the international community. Let me emphasise here that we shall not let this historic achievement to be weakened or neutralized by any bilateral treaty.
Yes, we could not achieve all that we wanted to. The progress was slow in some areas. But the most important feature about our six years in office is that we made India stronger. We made India stronger in security, stronger in development and stronger, above all, in self-perception.
I remember that The Economist, the influential British magazine had carried a survey of India in the early 1990s whose title was 'India, the Caged Tiger'. I had declared in one of our party conferences at the time that, if we came to power at the Centre, we would uncage this Tiger called India.
The Tiger was indeed uncaged during the six-year rule of the NDA.
It is not my claim that we alone accomplished this. The earlier government of Narasimha Rao also contributed to the unleashing of India's development potential. In general, we in the BJP have been far more generous and open in acknowledging the Congress party's positive contribution to nation-building than the other way around.
But that does not bother us. The Congress might think that only one family has contributed predominantly to India's progress, but the people of this country know - and they fondly remember it even now - the path-breaking accomplishments and initiatives of the Vajpayee government.
Govt's performance must match the ambition of India's youth
I have made this reference to the NDA government's record in governance just to drive home the point that we have the experience, we have the commitment, we have the vision and we have the determination to strengthen India much more when we get the opportunity to run the government again.
If people give us the mandate again, our government will be far more ambitious and far more result-oriented than any government has been until now. In saying this, I am not in any way belittling the achievements of the previous governments. Rather, the soaring ambitions, aspirations and expectations of the Indian people, especially India's youth, make it obligatory on any government to work with matching ambition. Anything less would mean letting down our people, letting down our youth.
By ambition, I mean, first of all, expansion of the prosperity net to include all those sections of our society who have so far remained either deprived of the fruits of India's economic growth or received only some crumbs.
What India has witnessed in recent years is growth with widening inequalities. Shri Bimal Jalan, a ditinguished person in our public life, a former governor of the Reserve Bank of India - no less -, recently stated that the earnings of 20 richest Indians exceeds those of 30 crore poor Indians. If this is true, it is shocking.
Lopsided growth, however high its rate, can never be sustainable. This is the reason why the exclusive talk of 9 per cent GDP growth rate by some people in government or in the business community does not enthuse the general public.
Forbes magazine, which is famous for tracking the wealth of businessmen around the world, has predicted that India will have more billionaires than any other country in the world by 2017. Frankly, this does not gladden me at all. Rather, I would be delighted if, ten years from now, we are able to eliminate abject poverty from India.
Urgent need for rejuvenation of Rural India
Therefore, it will be our endeavour - indeed, it will be our mission - to ensure that India makes the deepest dent in poverty than in any other previous five-year period in independent India's history.
For this, the most important policy reorientation required is that which would ensure redirection of investment - both public and private - into agriculture and the rural economy. India needs massive new investments in irrigation and water management; soil enrichment; rural infrastructure development in areas such as power, markets, roads, storage and processing facilities; animal husbandry, extension and other support services and reaching of appropriate scientific and technological knowledge.
If we want inclusive and sustainable growth, there is simply no substitute to massive re-industrialisation and rejuvenation of India's countryside, so that people get gainful employment, good living conditions and wealth-generation possibilities in their own villages and in the vicinity.
But we cannot wait until that happens. The need to protect the poor and needy is now. Therefore, it will be our endeavour to see that every poor family in India is provided with adequate food at subsided rates, so that they are well-protected at least in their basic nutritional needs. We shall also see how basic social security can be reached to the entire needy section of our society.
More schools and more health care centres will be built or renovated than during any comparable period in the past. So will more houses for the common people in both rural and urban areas.
Some of you might ask, "Does this mean MORE POPULISM IN A BJP-LED GOVERNMENT?" Top
My frank answer would be: "If by populism is meant efficient, corruption-free and well-targeted delivery of the most basic needs to the most needy sections of our society, yes, we will indeed practice more of such poverty-reducing populism. I consider this to be our moral and Constitutional duty. Money well spent on such missions is indeed investment in India's future."
And we are indeed setting a new example of "populism" in Karnataka, where, in our election manifesto for the forthcoming Assembly elections, we have promised not a free television set to every home but a full-fledged community cyber café. Each village will have a large community centre, computers with internet connection, television and other recreational and educational facilities. We believe that the IT Revolution must become inclusive and its fruits must reach every village. Apart from providing education and entertainment, and apart from serving as a centre for social and cultural activities, this community cyber café will provide information on agriculture, weather, prices, government schemes, etc.
'Golden Quadrilateral in education and healthcare'
Another area that will receive our highest attention is massive expansion of opportunities in all spheres of education, which I believe is critical for making economic growth both inclusive and sustainable. If we look at the educational landscape in India today, we cannot but notice that while the license-quota-permit raj may have made a partial or full exit from various sectors of the economy, it is alive and kicking in the education sector - especially in higher and professional education. Currently, as one study has noted, "the education system remains suspended between over-regulation by the state on the one hand, and a discretionary privatization that is unable to mobilize private capital in productive ways".
First, the various regulatory bodies in the field of education have not only become corrupt and highly bureaucratic, but they have indeed constrained the growth of educational infrastructure in India. We shall employ the sharp knife of reform to remove every layer of control that is unnecessary, while strengthening every regulation that enhances quality and accountability.
Second, capacity creation, in which the private sector and philanthropic institutions will need to share the major economic cost of subsequent expansion. If successfully implemented, these measures will ensure that our talented girls and boys are able to have adequate and quality seats in engineering, medicine, management, agriculture, veterinary sciences and scores of new areas that have sprung up in recent years. Needless to say, this will in no way affect - it will rather complement -- the various Constitutionally mandated reservations, which are necessary for achieving the objective of Social Justice.
Finally, in order to make higher and professional education inclusive, we shall increase the number of scholarships and attractive educational loans by such an order of magnitude that no deserving student is deprived of an opportunity to have an education of his or her choice. I believe that democratisation of education is the key to democratization of social and economic growth.
It will, in short, be our resolve to have the equivalent of the 'Golden Quadrilateral' in education and healthcare - that is, building a new Highway to take our children and youth towards the goal of Sushikshit Bharat, Swastha Bharat and Samruddha Bharat.
Enhancing employability of India's youth
Friends, recent experience has shown that mere increase in the number of degree or diploma holders is not enough for meeting the needs of double-digit GDP economic growth. A disconcerting aspect of higher and professional education in India is the mismatch between the needs of our rapidly growing economy and the employability of our educated youth. NASSCOM has estimated that only about 25% of fresh graduates in India are employable. This situation must be changed.
Recently, I had invited a group of experts from Bangalore to discuss this issue with senior leaders of our party. I was particularly struck by their persuasive demonstration of how some of our existing laws severely hinder, rather than help, skill development and employment generation.
Cynics might ask: "But is inclusive economic growth - that is, growth with poverty elimination - at all possible?"
My party believes that it is indeed possible. How?
Good Governance: Key to inclusive growth
Let me present three broad ideas. Firstly, and this is the most important requirement, it is possible if we can ensure Good Governance at all levels. We shall demonstrate our commitment to this by considerably raising the standards of governance at the Centre, which states and lower levels can then emulate. Simply by adopting Good Governance reforms, and thereby reducing inefficiency and corruption, it is possible to achieve additional 2-3 percentage points of GDP growth.
But Good Governance will not only boost GDP growth. It will also boost inclusive and sustainable growth since money will be well-spent to benefit the intended beneficiaries.
Apart from others, I seek ideas and suggestions from the business community on how to speed up Good Governance reforms. I assure you that you will not find in us a lack of political will.
As an example of political will, let me tell you that the BJP government in Gujarat, headed by Shri Narendra Modi, has been implementing a revolutionary slum redevelopment plan which will make Gujarat the first state in India completely slum-free.
The second requirement is security. We have seen how some of the poorest and most backward areas in India are those that have suffered from threats to India's internal security. There cannot be sustained economic development in places marred by terrorism, naxalite violence, organised crime and poor law and order.
As you know, the BJP has always placed security high on its agenda of priorities. We shall be uncompromising on this score.
Resources are no longer a constraint
The third requirement is, of course, resources. Fortunately, the financial resources available to the government have been rising rapidly. Our tax collection has been exceeding expectations. Our tax-to-GDP ratio is steadily improving. This is no small measure due to the bold initiatives, such as the Tax Information Net, that my colleague Shri Jaswant Singh took in the finance ministry. I believe that there is still enormous scope for achieving further increases in tax revenue through better compliance, lower taxes and elimination of corruption in the tax administration system.
In addition to increased buoyancy in India's tax revenue, India's savings rate is also steadily rising. Add to this the more than $300 billion of forex reserves, and we can see that resources will not be a constraint for undertaking an ambitious mission of inclusive double-digit GDP growth on a sustainable and long-term basis. If we need any expert ideas on how to raise resources, I am sure that we can count on the advice of the CII's new president and India's ace banker, Shri K.V. Kamath, and other geniuses in the field.
If the increased resources available with the government, combined with the enormous new avenues for resource generation that the private sector has been tapping of late, are judiciously channeled in priority areas such as agriculture, irrigation, agro-processing, physical and social infrastructure in both rural and urban areas, energy security, etc., India will write a growth story that is truly unprecedented in its history.
You will agree that this will also unleash the potential for new business opportunities - small, medium and big - across new geographical areas and integrating new hitherto-deprived social groups. Thus, India is on the cusp of the greatest, and most inclusive, entrepreneurial revolution in its history. It will be my party's endeavour to making this revolution happen.
Friends, this in brief is my perspective on achieving inclusive and sustainable economic growth for building a stronger India.
I thank CII for inviting me to share my views and I also thank you for giving me a patient hearing.
Thank you. Top
"Business can prosper only with Social and Economic Inclusiveness"
Speaking at the plenary session on " Decades of Change: What has gone right and what is to be fixed" at CII National Conference and Annual Session 2008, Mr Rahul Bajaj, Chairman Bajaj Auto Ltd, sought a change in mindset of both Businessmen and Bureaucrats. He added that Business can truly prosper only with social order in which the poor has a stake and hope in the mainstream. While appreciating the changes that have taken place since Economic Liberalization in 1991, he said that though quality of life has risen, delivery and implementation still remains poor.
Reiterating the above point, Mr K.P. Singh also pointed out that there is an immediate need for a change in the mindsets of those who are involved in the policy making process specially related to Urban Housing and Infrastructure. According to him, the biggest challenge that faces India today is how to educate Policy makers and to think further now that the liberalization process has come a long way.
Earlier Mr M V Subbiah, Former Chairman, Murugappa Group and Mr. Arun Bharat Ram, Chairman SRF Limited applauded the changes that have come in bureaucratic controls, import duties and licenses and highlighted that there has a lot to be done as far as social architect of the country is concerned.
The entire panelist supported the cause for Corporate Social Responsibility and spoke of how they are contributing to the society in their own small way. Mr K P Singh has been involved in philanthropic activities through DLF Foundation, Mr M V Subbiah has mainly been involved with Education and Health care, Mr Rahul Bajaj has been involved with in various such activities through an initiative called "Shiksha Mandal" in Wardha while Mr Arun Bharat Ram supports the cause of Education specially Primary Education.
While Delivering Concluding remarks, the panelist showed optimism and confidence that the long awaited change in the Psychological mindset will come about in 5 – 10 years time frame. They emphasized that for sustained prosperity, Government, Private Sector and Society needs to work together in sync. They thus called upon business men to run businesses more ethically in order to be heard and respected by the Indian Public and Policy Makers. Top
MR K V KAMATH elected as CII president for 2008-09
Mr K Vaman Kamath, Managing Director & CEO, ICICI Bank has been elected as the President of CII for the year 2008-09. Mr Kamath will assume as office as the new President of the apex industry association on 1 May 2008. He succeeds Mr Sunil Bharti Mittal as the new CII President.
Mr Kamath is the Managing Director and Chief Executive Officer of ICICI Bank Limited, India's second largest bank by assets.
He started his career in 1971 at ICICI, an Indian financial institution that founded ICICI Bank and merged with it in 2002. In 1988, he moved to the Asian Development Bank and spent several years in South-East Asia before returning to ICICI as its CEO in 1996. Over the next few years, the ICICI Group transformed itself into a diversified, technology-driven financial services group, that has leadership positions across banking, insurance and asset management in India, and a growing international presence.
Mr. Kamath was conferred with the Padma Bhushan, one of India’s highest civilian honours, in 2008. He was named “Businessman of the Year” by Forbes Asia and The Economic Times’ “Business Leader of the Year” in 2007, the Asian Banker’s Leadership Achievement Award for the Asia Pacific & Gulf region for 2007 amongst several other awards.
Mr Kamath has been conferred with an honorary PhD by the Banaras Hindu University.
He was the Vice President of CII during 2007-08 and member of the boards of the Indian Institute of Management, Ahmedabad and the Manipal University.
Mr Kamath holds a Degree in Mechanical Engineering and a Master’s Degree in Business Administration from the Indian Institute of Management, Ahmedabad.
Mr Venu Srinivasan, Managing Director, Sundaram-Clayton Ltd has been elected as the Vice President of CII for the year 2008-09.
Mr Srinivasan is the Managing Director of Sundaram-Clayton Ltd, a leading automotive component manufacturer and the Chairman & Managing Director of TVS Motor Company Ltd, India’s third largest two-wheeler manufacturer.
Mr Srinivasan is the Honorary Consul General of Republic of Korea, Chennai and is a Member of the Prime Minister’s Council on Trade & Industry. He also held positions as President of Automotive Research Association of India and President, Society of Indian Automobile Manufacturers.
Mr Srinivasan was chosen as a ‘Star of Asia’ by the Business Week International, along with the Chairman of Toyota, Japan. He was the first Indian industrialist to be conferred with the honorary "doctorate degree in science" by the University of Warwick, U.K. for excellence in manufacturing and contribution in the field of technology and R&D. He also received the Jamshetji Tata Life Time Achievement Award for the year 2004 by the Indian Society for Quality.
Both Sundaram-Clayton Ltd and TVS Motor Company have been awarded the prestigious Deming Prize by the Union of Japanese Scientists and Engineers (JUSE), Japan.
He holds a Bachelor’s Degree of Engineering from Madras University and a Masters Degree in Management from Purdue University, U.S.A. Top
