The Hindu : Business : Inclusiveness essential for higher growth: FM

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Inclusiveness essential for higher growth: FM

Special Correspondent

— PHOTO: RAJEEV BHATT

BANKS ACROSS BORDER: P. Chidambaram (right), Union Finance Minister with Alok K. Misra (left), Oriental Bank of Commerce Chairman and Managing Director, at a function in New Delhi on Monday.

NEW DELHI: Even in the wake of moderation in expectations of high growth, Finance Minister P. Chidambaram on Monday said India’s economy could easily grow at 10-11 per cent only if the “mute other half” of the population is brought into the mainstream.

“Please remember, India’s economy is driven by one half of the population. The other half is mute witness to what is happening in India. If [the] other half also becomes part of the driving forces of growth, India’s economy will grow not by 8-9 per cent, it will easily grow between 10 and 11 per cent,” Mr Chidambaram said at a function organised here by Oriental Bank of Commerce (OBC) for launching technology-based initiatives.

Pointing out that as many people as possible should be brought into the mainstream of economic activity, he said: “What is more important is to give them advantages of [a] vibrant banking system.”

As per the advance estimates of the Central Statistical Organisation (CSO) for 2007-08, the country’s economic growth rate has been 8.8 per cent, on an average, during the first four years of the UPA Government. However, the surge in the inflation rate in recent times may necessitate a moderation in growth so as to hold the price line. “The Government is determined to take all steps — fiscal, monetary and supply side — to moderate inflation. If that means, we have to live with slightly lesser growth, so be it,” Mr Chidambaram had said in Mumbai last week.

While launching OBC’s new initiatives, the Finance Minister pointed out that it was a misconception that Indian masses would not accept new technologies. “I think we underestimate the people of India. The people of India take to technology very easily. Just imagine how mobile telephones have spread…I do not think that banks should worry about whether the people of India will accept the new technologies,” he said.

Mr Chidambaram advised the Delhi-based public sector bank to be aggressive in its approach and expand financial inclusion in the country.

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