The Hindu Business Line : Pant hopeful of boom in manufacturing

THE heartening feature of the economic growth has been the performance of the brick and mortar sectors which have demonstrated a degree of vitality that gives us confidence about our future and India has the potential to emerge as a manufacturing hub for the international market, according to Mr K.C. Pant, Deputy Chairman of Planning Commission.

Addressing visiting delegations and industry leaders at the Plenary Session of the three-day 10th Partnership Summit, Mr Pant, while highlighting the recent trends in the Indian economy, said that the manufacturing sector was poised to realise the gains from the restructuring process it has gone through over the past few years.

"Our optimism in the country's economy appears to have been vindicated by the recent performance of the economy. In the second quarter of this year, our GDP has increased by 8.4 per cent and it is expected that it will grow at over 9 per cent in the next two quarters," Mr Pant said giving an overview of the economy and steps taken to provide further impetus.

Foreign portfolio investors have recognised the strength and potential of our capital markets and have poured in over $6.5 billion last year. We have every intention of replicating such success in other sectors as well. With regard to attracting FDI, highest importance is being accorded to this.

The Planning Commission has set up a high level steering group on FDI whose report is currently under active consideration of the Government.

"In addition, the commission has established an Empowered Committee of Union Ministers and State Chief Ministers to draw a blueprint for creating an investor-friendly environment and oversee its implementation. This is the first time that a major reforms programme would explicitly reflect the federal nature of our political system and be guided at the highest political level," he said.

The Tenth Plan aims to make the country one of the fastest growing economy in the world by the end of the year 2007. The country has the potential to record an average growth rate of 8 per cent per annum during these five years, rising to above 9 per cent in the terminal year.

This could well mean that the country would become the third largest economy well before Goldman Sachs estimate, preferably by 2020.

"The strategy for achieving such sustained acceleration hinges around creating the conditions for encouraging entrepreneurial dynamism within the vibrant market economy.

"Our approach to planning for a modern market economy is markedly different from what it was three decades ago. When the public sector was seen as having an expanding role, and the Government's presence is pervasive.

"Today, we expect and encourage much freer operation of market forces and the Government's is withdrawing from large parts of the economy where we believe that freer markets will be conducive to economic efficiency and more economic growth," he explained.