The Hindu Business Line : SBI chief urges business houses to take long-term view of economy

Growth story
India is not only witnessing a reverse brain drain, but many foreign nationals were taking up jobs here, besides NRIs were returning home to be part of the country’s growth story.

Our Bureau

Mumbai, April 28 The India growth story is intact, regardless of what the RBI Governor, Dr Y.V. Reddy, decides on Tuesday, Mr O.P. Bhatt, Chairman, State bank of India, said here on Monday. The RBI will announce its credit policy on Tuesday.

Urging business houses to take a long-term view of the economy, Mr Bhatt said “we should stop living quarter by quarter”. The present economic constraints were a ‘blip’ in a long success story.

Speaking at the 100th annual general meeting of Indian Merchants’ Chambers here, Mr Bhatt said the contribution of different sectors to GDP growth is changing with services chipping in 55 per cent, while the agriculture, which was traditionally the main stay, contributing 17-18 per cent.

The worrying factor was that 20 per cent of the population depended on the service sector for a livelihood while 60 per cent depended on agriculture.

Stating that tier II and III cities were humming with activity of new generation entrepreneurs, he said private equity investment were pouring into innovative business ventures.

India is not only witnessing a reverse brain drain, but many foreign nationals were taking up jobs here, besides NRIs were returning home to be part of the country’s growth story.

‘Cities unfit’

Major cities have become unfit for living, Mr Deepak Parekh, Chairman, HDFC, said, while pointing out that 40 per cent of the population were expected to live in cities by 2020.

Mr Parekh said the private sector had a role to play in education and healthcare of the country and it should not be totally left to the Government.

Pointing to innovations in technology, he said the concept of the ‘mobile wallet’ would help banks reach rural areas and bring about financial inclusion. He urged the chamber to become a one-stop-shop for innovation, and encourage research.

“I would like young entrepreneurs to address senior businessmen. There is no dearth of entrepreneurs and I am sure gen-next has a huge potential,” he said.

The Reliance Industries Ltd (corporate affairs) President, Mr Murlidhar Narayan Chaini, and Pijikay Group Chairman, Mr Gul Kripalani, assumed office as President and Vice-President respectively of the IMC for 2008-09.

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