Had
been to “Food For Thought” (FFT – Breakfast meeting by MCCI this morning @ GRT
The topic was “State
of Indian Economy”
The
speakers were: Dr.Suresh Babu, Prof of IIT, Mr. Raghuvir Srinivasan from The
Hindu and Mr. Lakshmi Narayan of CTS.
The
highlights of the discussion and presentation – the summary is as follows:
Growth:
Where are we heading?
Current
account deficits: a mile wide
Inflation:
contemporary dilemmas
Fixed
deposits: always a priority but never an achievement
Demand
& distribution: Actions and corruption
These
are the five stylized facts on the State of the economy
Main
reason of fall in growth is
Shift
from commodity production to service oriented economy
Quality
of employment has gone down – in the service sector
Sectorial
comparison of GDP
Year Agriculture Manufacturing Service
90
-91 29.6 27.7 42.7
11-12AE 13.9 27 59
Food
price inflation has resulted in wage-price – leading to wage labor cost
pressure
Fuel
price transmitting international inflation to India
High
protein price increase in the malnutrition economy
Worrisome
issues are:
Balance
of payment deficits (imports more and less of exports) mainly More of Gold and
fuel (crude) is being imported
Need
for consumption reduction of products that are scarce and in a price increase
situation
Inability
to increase exports through manufacturing sector as against increasing exports
from the service sector
Exports
– too much happening towards America – need to try out African countries
Commercial
transaction tax to be done with.
Manufacturing
and Mining (legal way) to be enhanced and encouraged
Anything
less than 6% of GDP is not attractive to our country
Rs.
12000/- p.m. must be the family income even in villages in the present
inflation situation to cope with.
Farm
workers – not available at all in the Agriculture sector
Around
86 Lakhs of people got employed in our country in the last year and 50% by the
IT sector with high salary
Industries
only determine GDP and it cannot be by the Govt – if we take things positively
String
instruments are used in happy moments
Bow
instruments are used in sorrow moments
More
of Violin can be heard in Parliament these days in our country
What
should go up is going down (for example Growth, Inflation, Fiscal deficit and
Exports)
Hunger
rate in India has not improved very unfortunately
It
was 20% in 1990-91 and it is 19% in 2012. Whereas backward countries could even
bring it down.
North
and South Blocks are the TWO important ‘blocks’ to our nation’s growth.
No comments:
Post a Comment