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India Economic Summit
New Delhi, India 27-29 November 2005
Executive Summary
When the 600 participants in the India Economic Summit 2005 gathered in New Delhi in November, the mood was optimistic.
The economy has found a new cruising altitude. With GDP expected to rise by 7.5% this year, the discussion now focused on a target of 8% and beyond.
At the closing plenary, Prime Minister Manmohan Singh, who as finance minister 15 years ago was one of the architects of India's economic liberalization, stirred aspirations even higher: “We should be targeting a 10% growth rate in two to three years' time if we have the expected increase in our savings rate and make a quantum leap in agriculture and infrastructure.” more
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Download the print version of this report (pdf; 30 pages; 705k) |
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| In Depth: India and the World |
Action Points |
| Balancing Agenda |
Action Points for India |
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India will have a tough time managing domestic and global responsibilities. Coalition politics will make the pursuit of good domestic governance and global citizenship tricky, yet balancing strategic, economic and ideological concerns regarding the global and national agenda will become increasingly important.
India's role in the WTO will be a main factor in its success or failure. However, as a strong voice for developing nations, India will not shy away from its responsibilities towards these nations in its pursuit of being a global player.
As well as multilateral arrangements, bilateral trade agreements will continue to shape relationships with regional neighbours. |
The global environment is in India's favour. India's business community realises that execution, speed of distribution, implementation and benchmarking are critical focus points to improve the competitive environment. However, mobilising efficient resources in certain key sectors is not the whole solution. If India is to drive equitable growth, then it also needs to recognise the female talent pool, especially in the rural areas, more effectively. Managing relationships near and abroad will require skill at a time when many countries compete for the same resources and are seeking new security partners. |
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| In Depth: Competitiveness |
In Depth: Women and Rural Communities |
| Making India competitive |
The key to India's future |
Hard data suggest that India still ranks very poorly in tertiary education and ICT penetration.
The current political coalition will make tough reforms difficult to push through, but India will need to do this if it is to maintain credibility around the world.
A large government deficit caused mainly by government subsidies to utility services means India will need better pricing mechanisms to improve competitiveness.
Job creation will need to address rural needs as well as the growing urban population.
Participants rank infrastructure the area where businesses can play the greatest role in improving India's competitive position.
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• India has 1.1 billion people, 60 per cent of which works in agriculture, 25 per cent of which earns less than 100 rupees a day and 500 million of which live without electricity.
• Rural India still suffers from poor education, health and infrastructure, yet women in these areas represent an untapped source for entrepreneurial teaching and health work.
• India's new political landscape means that states have relative autonomy and have fragmented the central government's power.
• Businesses should recognize that Indian women not only hold the key to raising India out of poverty by representing new markets but also as a new source of entrepreneurial talent. |
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