Karnataka - Bangalore   

Delay in reforms has hit growth, says Moily

Staff Reporter

`Country lagging behind China in technology and productivity'

FELICITATED: Chairman of Second Administrative Reforms Commission M. Veerappa Moily (right) greeting Chairman of Vydehi Institute of Medical Sciences and Research Centre D.K. Audikesavalu at a function in Bangalore on Thursday. — Photo: Sampat h Kumar G.P.

BANGALORE: M. Veerappa Moily, Chairman of the Second Administrative Reforms Commission, Government of India, has said the country can achieve the targeted gross domestic product (GDP) growth of 10 per cent a year by raising its capital and labour productivity.

This, he said, could only be accomplished by a broad-based industrial revolution and shifting of at least 30 per cent working people from agriculture to manufacturing and services sector. Mr. Moily was delivering the Sir M. Visvesvaraya Memorial Address at the Foundation Day celebrations of the Federation of Karnataka Chamber of Commerce and Industry (FKCCI) here on Thursday.

The celebrations also saw leading industrialist and founder of Vaidehi Medical College D.K. Audikesavulu being conferred the Sir M. Visvesvaraya Memorial Award, 2005 by the FKCCI.

Comparing the Chinese and Indian economies, Mr. Moily said the delay in implementing economic reforms had left India lagging well behind China both in technology and productivity. Mr. Moily further said the boom in service sector in India could not offer employment to a large chunk of the India population due to poor levels of education, and only the manufacturing sector could cater to them. The great challenge was how to create manufacturing jobs that could absorb up to 100 million people.

Staging that unlike other high-growth economies, India's growth was not accompanied by a rising share of industrial output in GDP, Mr. Moily noted this could be solved by finding international companies which needed components from India such as electronics, auto parts, telecommunications, healthcare products and the like. Thus, the contribution of 27 per cent to the GDP (2002) from the industrial sector could substantially be increased, he felt.

Mr. Moily said the changing demographics of the world was creating a large opportunity for export of knowledge-based services and value added manufacturing from India.

FKCCI President S. Babu and several leading industrialists were present.

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