The Hindu Business Line : Growth must be inclusive, equitable: Kamal Nath

New Delhi, Oct 8 The high growth rate would become unsustainable if the growth impulses are not transmitted and felt in all parts of the country, the Union Commerce and Industry Ministry, Mr Kamal Nath, has said.

Speaking at a rural summit, organised jointly by FICCI, the Department of Commerce and the Ministry of Rural Development with the support of nine other Ministries, Mr Nath said, “If we are to ensure that growth is both inclusive and equitable then we have to align and integrate our rural areas with the economic processes. The urban-rural divide must be bridged”.

Mr Nath said the lack of adequate and remunerative employment opportunities in the rural areas has led to large-scale migration from rural to urban areas.

The elasticity of employment in the agricultural sector has almost fallen to zero, thereby creating the need to look at other sectors for employment generation within the rural sector.

Role of private sector

Underlining the role of the private sector in enhancing employment opportunities and promoting farm and non-farm enterprises in the rural areas, Mr Nath said enterprises in rural areas require advice on technology related aspects, on globally benchmarked production methods, information on the changing consumer needs and ways to diversify product portfolios.

Micro financing models

He urged the summit participants to consider micro financing models of using credit as a cost-effective weapon to fight poverty and to promote income-generating activities amongst the poorest of the poor people in the country.

Industry can partner with the panchayats to assess and meet local requirements of agricultural inputs, to meet the storage and post-harvest needs, to engage in contract farming, to encourage direct procurement, to market agri produce and to promote agro processing, he said.

Mr Habil Khorakiwala, President, FICCI, said giving a strong push to economic activities in the rural areas requires simultaneous improvement in infrastructure facilities, education level and health standards among people residing in these areas.

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