The Hindu : Business : Chidambaram's recipe for achieving economic objective

Online edition of India's National Newspaper
Friday, Feb 11, 2005

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Business

Chidambaram's recipe for achieving economic objective

By Our Special Correspondent

The Union Finance Minister, P. Chidambaram being welcomed by the ICC President, Sudhir Jalan, during the ICC India Platinum Jubilee annual meeting in New Delhi on Thursday. — Photo: Rajeev Bhatt

NEW DELHI, FEB. 10. The Union Finance Minister, P. Chidambaram, on Thursday indicated the broad contours of the Centre's philosophy in economic decision-making to help the country drive the global economy in the 21st century. And coming as it does just 18 days before he presents the Budget for the new fiscal, the provisions of the economic policy package may well contain measures to accelerate the process.

Unveiling a five-point strategic recipe aimed at achieving the objective, as desired by the captains of industry, Mr. Chidambaram said the very fact that the country's business community was thinking in that direction and putting a query to the Government and he, as a representative, was attempting to answer it showed the "remarkable confidence" that has grown in these 12-13 years. Responding to the industry's query while inaugurating the platinum jubilee annual meeting of the International Chamber of Commerce (ICC), India, Mr. Chidambaram said that India, along with China, could well drive the global economy "if we keep our economy open and continue on the same path of liberalisation chosen in 1991."

That, he said, was the first step. Further, it would require promotion of investments, especially in irrigation, agriculture and infrastructure and a constant endeavour is made to improve competitiveness and to retain the competitive advantage in areas where "we have the competitive advantage." The fourth step, he said, was to remain a "fiscally prudent country" and lastly, "keep all sterile political controversies away and focus on economic reforms."

The UPA Government's National Common Minimum Programme (NCMP), incidentally, also emphasises greater focus and investments in sectors such as irrigation, agriculture and infrastructure and it is clear that there is likely to be larger investments and allocation to these segments in the new fiscal and the coming years. China, Mr. Chidambaram said, was clearly the global economy driver. But the heartening fact was that India was nowadays always mentioned along with China in this regard. Already, there were signs of this happening, as was reflected in the various economic parameters such as GDP growth (next only to China), growth in a host of sectors such as manufacturing, mining, transportation, electricity, exports, accretion of foreign exchange reserves and the like.

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