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Press Release
Keynote address by His Excellency Mr. Pranab Mukherjee, External Affairs
Minister on “Globalisation, Growth & People” at the 87th Annual
Conference of ASSOCHAM
(New Delhi; June 3, 2008)
Shri
Venugopal N. Dhoot, President ASSOCHAM
Shri Sajjan Jindal, President-Elect, ASSOCHAM
Distinguished Guests,
Ladies and Gentlemen
It gives me
great pleasure to be amidst eminent business personalities of India at
the 87th Annual Session of ASSOCHAM. I am also happy to release the
Chamber’s study report on “Economic Diplomacy – India’s Strategy for
Coming New Economic World Order”. The Chamber is credited with bringing
out outstanding research papers on the issues which are of concern and
relevance to our economy. We look up to the deep insights provided in
your studies to issues pertaining to various segments of the economy and
business environment. The Chamber has been doing commendable work in
providing excellent platform to the industry and government through its
summits on various topics. My government values the recommendations
provided by your esteemed think tank.
I must also convey my appreciation to the organizers of the event in
selecting the theme of this year’s Annual Function as “Globalization,
Growth and People”. It is indeed important that the benefits of global
growth are equitably distributed to make a meaningful impact on poverty
eradication and ensure the welfare of people. We must balance growth
with development, particularly for a large and diverse country like ours
so that we derive optimum gains from the process of globalization.
The world is changing
faster than ever before. The key driver of this change is globalization.
Countries are becoming more closely interlinked with one another through
the cross-border movement of goods and services, capital and labour,
technology and ideas. An integrated world is making economics more
efficient and business more competitive.
India’s experience shows the benefits of plugging into the global grid.
Indeed India’s economic transformation is based fundamentally on
globalization, which has opened markets and, if I may say, made
political borders extraneous. India with a trillion dollar economy and a
sustained growth trajectory of nearly 9 per cent per annum for the past
five years, a 300 million strong middle class and optimistic outlook
sustained high growth rates, is emerging as an important driver of
growth in Asia and beyond. However, 220 million people are still waiting
to be lifted out of poverty, although the proportion of population below
poverty line has considerably declined from about 44% in 1983 to 22% in
2005. We have to make enormous efforts to achieve a truly inclusive
growth.
India, along with the
rest of the world has experienced significant, although uneven, economic
growth and major economies in the developing world including India, have
been contributing significantly to it. Globalization has played an
important role as a dynamic force for growth. However, its impact has
left us with a world beset by acute economic and social inequities. The
marginalization of many developing countries, especially in Asia &
Africa, calls for intensified international co-operative efforts,
international policy coherence and co-ordination.
The coming years promise new vistas of human development and economic
growth. It also demands a new mindset and a pragmatic forward-looking
approach towards our society, polity and economy. We need to undertake a
reality check so that we can better address the issues of today and
cater to the greatest well being of the largest number of our people.
Ladies & Gentlemen,
Development is a right,
central to people’s progress and critical to the eradication of poverty,
fostering peace, stability and security of all nations. We are committed
to working with multi-lateral and regional forums, and with our
strategic partners to advance the development agenda and the eradication
of poverty. We believe that eradication of poverty in the world is not
only an issue of importance to developing countries, but also a matter
of collective global interest. It is indeed a matter of great concern
that 880 million of the global populations are below poverty levels and
one-third of humanity, nearly 2 billion, remains at near subsistence
levels.
India’s focus on evolving a multi-faceted relationship with all
strategic regions is an outcome of the significant changes in the
world’s political and economic scenario since the early 1990s and
India’s own march towards economic liberalization. The process of
economic integration is taking place at varying paces, but in the clear
direction of a global marketplace. Competition is greater than ever
before between companies, nations and regions and we still see
discriminatory practices and protectionist tendencies among some
developed countries who do not wish to see development and growth shared
equitably. We have to resist such tendencies in every forum that we can.
We are, however,
convinced that globalization is an irreversible process and despite the
risks, opening up is the best way to achieve economic progress and
improve the lives of people. We have pursued sound macro-economic
policies, strengthened our financial systems and improved corporate
governance. Some of this is still work in progress. Investors are taking
notice; FDI inflows to India have shown significant increase exceeding
US$ 20 billion last year. At the same time, a growing number of Indian
entrepreneurs are internationalizing their operations and have invested
in foreign markets, partnered and taken over major business concerns,
many of them in developed countries. Indian talent has given leaders to
some of the best run multi-national corporations today.
Human capital is the most valuable resource that we have. For us, the
concept of sustainable development must include the needs of our people
for health, nutrition, education and housing so as to provide to all a
life of dignity in a clean, safe and healthy environment. The challenge
is to have more access and integration with global technology. India has
remained isolated from high-technology commerce due to its position on
nuclear energy. We hope to resolve this soon.
Ladies
& Gentlemen,
Globalization demands a paradigm shift in the manner in which we conduct
our economic policy. India’s contribution to the global economy
continues to rise, aided by the ‘demographic dividend’, the intangible
gains of the global knowledge economy. The information and communication
technology revolutions have virtually shrunk the globe. Geography is no
longer a buffer. Events taking place across borders near and far, impact
us in a much more direct manner today. In the process of building blocks
for an evolving regional architecture for cooperation we have
intensified our dialogue with our strategic partners at multiple levels.
Our cooperation is multi-dimensional, engagement at the levels of
government, business, civil society, academia and people to people
contacts.
The opportunities beckon. In a globalizing world, we have to look beyond
national and regional boundaries and work together. We recognize that a
supportive and an enabling global policy environment, based on
principles of equality, mutual respect, equity and justice, constitute a
positive framework for international co-operation.
Overall, globalization represents the best hope to improve the lives of
the world’s population. It has created growth and wealth, and fostered
trade and interdependence. Managed properly, it will be a powerful force
for social good. With effective functioning of multilateral institutions
and restructuring of the global economic architecture, countries in the
developing world would stand to benefit from open markets and
competition.
India is steadily emerging as an important global player. That devolves
certain responsibilities on us and we need to support the economic
integration process in our neighbourhood and beyond. For this good
governance is the key. There is need for greater public private
partnership and for the private sector to earnestly take up corporate
social responsibility so that benefits of growth reach all segments of
the society.
My message to the CEOs gathered here today is simple – you have to
explore these new trends and ensure purposeful functioning while you
seek greater gains for your enterprises. The lowest common denominator
has to be the welfare of the people and that is where we need to
coordinate our policies and actions. I urge you all to extend the
boundaries of your thought and vision, and draw from the experience of
today’s global economy. |
