The Hindu Business Line : More investments vital to sustain growth rate: Chidambaram

ROOM FOR PRIVATE SECTOR: The Union Finance Minister, Mr P. Chidambaram, addressing a special plenary session at `SPEED 2006' in Madurai on Sunday. — S. James

Madurai , Dec. 3

People and parties should realise that the current economic growth rate over 8 per cent is due to an investment boom the country has been experiencing since the middle of 2004 and the inadequacy in infrastructure has stemmed from this investment pressure.

To sustain and improve the growth rate, domestic private investments and foreign investments are equally vital along with the public investment, said the Union Finance Minister, Mr P. Chidambaram, in his address at the special plenary session at the SPEED 2006 conference-cum-exhibition, organised by the Confederation Of Indian Industry the (CII) in association with the Government of Tamil Nadu here on Sunday.

He said enlarging the space for private investment in the telecom sector has resulted in a phenomenal growth and this applies equally to foreign investments. They move capital seeking opportunities and India, with its manpower capabilities that are second to none, should seek to benefit from it.

Only a consistent year-on increase in investment of over 50 per cent over a period of time can ensure prosperity, he stressed.

Referring to the southern districts, Mr Chidambaram added that development on the infrastructure front, though late, has started. Local entrepreneurs, especially from the small and medium enterprises should start taking advantage of the special economic zone at Nanguneri, given the Tuticorin Port's potential.

Equally necessary along with the physical infrastructure is the promotion of social infrastructure and elected representatives from the region should give more attention to this. Investment in the region is sure to go up provided the political parties work for social harmony and peace, the Finance Minister said

He released, on the occasion, the CII-sponsored study on `Business potential of Sivaganga parliamentary constituency.

Speaking earlier, the Chairman, SPEED 2006, Mr T. Kannan, urged Tamil Nadu to market the southern districts effectively, stating that the region is ready for a change at a speed not known earlier.

The Co-Chairman, SPEED 2006, Mr R. Dinesh, in his address, to help sustain the momentum gained by the southern districts, urged the Government to act as a catalyst and encourage more public-private partnership with a master plan for the next two decades both on infrastructure and tourism.

Mr Pradipta K. Mohapatra, Deputy Chairman, CII, Southern Region, stressed the need for decentralisation of planning to empower smaller regional territories to build on their strengths.

Addressing the meet, Mr Pari Natarajan, Chief Executive Officer, Zinnov Research And Consulting, elaborated on `What it takes to make Tier II cities attractive'; Mr Raghuttama Rao, Managing Director, ICRA Management Consulting Service, outlined the potential for health tourism in Madurai.

Ms Preetha Reddy, Managing Director, Apollo Hospitals, speaking on `Key issues in health tourism' touched on the experience of foreigners at the airport and drive into the city.