Shourie: smaller policy gestation time to help growth

Written by fe Bureau | Mumbai | Updated: Jun 25 2009, 05:46am hrs
India has enormous potential for growth if it can escape the middle-income trap, said member of Parliament and former minister of telecommunications, commerce and privatisation Arun Shourie. He added, India can escape the middle income trap if the gestation period for new policies is not long. Second, the sustenance period for any policies should be long before it brings about any change. Finally, all governments or powerhouses should move together in one direction to bring about changes at macro level.

While speaking at the fourth Emerging Markets Forum in Mumbai, hosted by the Bombay Chambers of Commerce and Industry (BCCI) and partnered by FE, Shourie discussed fundamental issues that probably hinder the pace of economic growth in the country. Policies and their implementation play a vital role for a middle income-trap country such as India. There is no doubt the way, say top 20 Indian corporate houses have scaled heights in a few years, said Shourie.

He further said usually policies are discussed in the capital city; New Delhi but is not implemented at all levels. There should be a sense of urgency at all levels to bring about a sea-change, said Shourie. He also said growth story in India is always compared with China. But economic reforms in China started since 1978 and India lags behind by years since reforms in India started much later in 1991. Meanwhile, applauding India for its infrastructure growth, Nippon Export and Investment Insurance (Japan) chairman and chief executive officer Hidehiro Konno said Japan has seen exponential growth in the infrastructure sector in India. For instance, the Mumbai-Delhi freight corridor for which India signed a memorandum of understanding (MoU) with the government of Japan in 2006 to jointly develop the corridor. Since then we have seen many projects undertaken by the country. The forum was attended by key players and observers of the Indian economy such as Planning Commission deputy chairman Montek Singh Ahluwalia and HDFC chairman Deepak Parekh.