Crisis is deep and recovery wobbly: Sharma

Written by Kiritika Suneja | Agra | Updated: Jan 28 2013, 07:47am hrs
Emphasising that high growth is not an option but imperative, commerce and industry minister Anand Sharma on Sunday said that t heeconomic crisis is deep as the last five years have been challenging for both the developed and developing economies.

The crisis is deep and recovery difficult in its fifth year. It is in the form of inflation, flow of capital, energy and food security. The truth is that recovery is wobbly and uneven, Sharma said while inuagurating the CII Global Partnership Summit 2013 here.

Highlighting that unemployment is also a fall out of the crisis, Sharma said that of the global labour force of 3.3 billion, 200 million people are unemployed and over the next decade, around 400 million people would enter the labour market.

Countries like India will see 250 million additional job seekers in the next 15 years as they shift from the rural economy towards urban industrial activity. There is a serious challenge for policy makers to provide enough jobs in the manufacturing and services industry to absorb these people and to impart adequate skill sets to make them employable, he said.

In fact, the commerce ministrys National Manufacturing Policy which aims to setup National Investment and Manufacturing Zones (NIMZ) in the country, seeks to increase the share of the sector to at least 25 % by 2020 from the present 16% besides creating 100 million jobs by 2020.

While seeking regional and global partnerships to counter the challenges, Sharma said: It is difficult to explain why economies and trade are not doing well which impacts job creation, productivity and manufacturing. While the last year was difficult for India, the severity of the crisis has adversely affected all.

This was corroborated by Uttar Pradesh chief minister Akhilesh Yadav who said: While large industries provide momentum to growth, we need to focus on the manufacturing sector- only a thriving manufacturings ector can make growth more inclusive.

He sought partnerships to address the present challenges of terrorism, pandemics, joblessness, energy and food security and secure movement of cargo through sea routes

The US-though challenged in its own ways- is on the path to register strong growth. The developing countries of East Asia have shown robust growth

Compared to the last year, he said that there is cautious optimism as global gowth is pegged at 3.5% and hoped to India to achieve 6.5% growth this year and China to grow at 9%.