‘Inequality is threat to growth’
The Indian economy is at an inflection point. However, it is equally true that there are structural bottlenecks in the economy, which if left unaddressed could derail our high growth process.india Updated: Apr 14, 2012 22:19 IST
The Indian economy is at an inflection point. However, it is equally true that there are structural bottlenecks in the economy, which if left unaddressed could derail our high growth process.
Some of the biggest threats to growth of the Indian economy include governance issues, lack of political consensus on reforms and inequality of opportunities across our population leading to social unrests.
Sustained high rates of growth are a necessary pre-condition for pulling people out of poverty, but not sufficient.
We need agrarian and rural reforms including an effective distribution system so that the fruits of development percolate down to the grass root level. Reforms like opening up FDI in retail, promoting skill development, focus on education and health, augmenting investment in agriculture and infrastructure, linking agriculture and rural entrepreneurship with markets would go a long way in creating livelihoods, which would help bridge the gap between the rich and the poor.
The favorable demographics, strong fundamentals and growth drivers should drive the overall growth momentum and development in the next couple of decades.
Vice chairman, Tata Steel and president, CII