The Hindu Business Line : Chidambaram's 5-point agenda for India to drive global economy

DRIVING GLOBAL ECONOMY: The Finance Minister, Mr P. Chidambaram, flanked by the International Chamber of Commerce India President, Mr Sudhir Jalan (right), and its past President, Mr Bharat Ram, at the ICC India Platinum Jubilee meeting organised by FICCI in the Capital on Thursday. - Kamal Narang

New Delhi , Feb. 10

THE Finance Minister, Mr P. Chidambaram, on Thursday outlined a five-point agenda, including the need to "keep aside sterile political controversies," for India to drive the global economy in the 21st century.

Inaugurating the ICC India Platinum Jubilee annual meeting here, Mr Chidambaram stressed the point that India had "almost uniquely" a great opportunity to reap the "demographic dividend" and achieve high growth rates on a sustained basis. The theme of the annual meeting was `Will India drive the global economy in the 21st century?'

He held that there is growing recognition that it is India and China together which would drive the global economy in the coming years. Elaborating on his five-point programme, Mr Chidambaram said that India has to keep its economy open and continue on the same path that it chose for itself in 1991. The second point related to promoting investments, especially in agriculture, irrigation and infrastructure.

The Finance Minister said that India must constantly endeavour to improve its competitiveness and look for competitive advantages. He also held that India must remain a fiscally prudent and responsible country.

The fifth point suggested by the Minister related to the need for keeping aside "all sterile political controversies" and a focus on economic reforms and economic growth.

"If we do all these things, no one can stop India from becoming the driver along with China of the global economy in the 21st century," Mr Chidambaram said. He highlighted that China and India could work together and forge new partnerships for furthering trade.

Acknowledging that China today is the driver of global economy, the Finance Minister pointed out that it is the huge consumption in the US that is driving the Chinese production engine.

"If consumption drives production, it is aspiration that drives consumption. We must aspire to be a greater country. We must aspire to give good education to all children and the best of healthcare, drinking water, roads and power supply in villages," he said.

Noting the rising aspirations of young Indians, Mr Chidambaram said that the output of India would be much higher than the output of every other country in the world (except China), if all the people in India's working age population were educated, trained and engaged in productive work.

The Finance Minister pointed out that India is the only country in the world where the size of the working age population would increase over the next 20 years before it begins to decline. "India is also the only large country in the world where the average age of the population would decline before it rises," Mr Chidambaram said.

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