SME Times News Bureau | 29 Jan, 2013
Despite the economic challenges being faced by nations world
over, the emerging market economies have registered significant gains based on
liberal economic reforms pursued over the last two decades, Union Minister for
Commerce, Industry & Textiles Anand Sharma said Monday.
"Sustaining a high growth for a country like India is
not an optional choice for us but a social imperative as only through sustained
economic growth will we be able to lift millions out of poverty net," said
Sharma while delivering his keynote address during a session on "The Large
Emerging Economies: New Growth Hubs of World" in The Partnership Summit
2013 in Agra on Monday.
He further said that these emerging market economies would now have to address the
fundamental structural issues which face their economies and usher in the next
phase of economic reform.
"The Government has established a Cabinet Committee on Investments headed
by the Prime Minister himself which will not only fast track high value
investment projects but also help in cutting down delays for regulatory
clearances," added Sharma.
Sharma also acknowledged the "inherent advantages" of the emerging
economies by stating that these have given them strength and resilience to
withstand the external shocks.
Citing the advantages, Sharma said that the emerging market economies have a
fast expanding middleclass which is buoyed by the rising income levels. Along
with this, these economies are also becoming hubs of low cost or "frugal
innovation".
"As companies and governments enhance R&D expenditures, we will see
emerging economies becoming even more competitive as technology providers,"
said Sharma.
He further said that the emerging economies are also set to reap the benefits
of the demographic dividend. Sharma added that these emerging economies are
also a source of rich human resource.
"India is home to one of the largest scientific manpower in the world with
over 12 million engineers and doctors and an equal number of post-graduates in
science and mathematics and we annually add 2 million graduates, 700,000
post-graduates and 300,000 engineers," said Sharma.
Sharma however added that these emerging market economies have huge
infrastructure deficiencies, which needs serious attention to be paid into.
Sharma said that this presents an opportunity for even greater private
investment flows - both domestic and foreign - which will continue to catalyse
growth.
He further added that in India alone, we are going to spend USD One trillion on
infrastructure building over the next five years, half of which will come from
private sector.
Sharma, ending his address, said that the future of the 21st century world
would be shaped neither by the developed world alone nor by the emerging
economies by themselves, but through creative partnerships between the two.