The Hindu Business Line : Smooth economic transition?

With GDP all set to touch the double-digit mark, forex reserves crossing $170 billion and the confidence of foreign investors high, with greater FDI and FII, the economic picture appears to be rosy. However, serious steps need to be taken for better agricultural growth, as the farm sector has been tottering over the past few years.

Addressing agricultural issues will create a better tomorrow as it is the primary employment for over 60 per cent of the population.

Also, to sustain growth, plans must be formulated to improve urban infrastructure, education and rural and urban healthcare.

Eashwar Natarajan, Chennai

Economically, 2006 was a remarkable one for India as the GDP growth rate reached a new high. Forex reserves touched $177 billion. Growth in the IT sector soared and it is set to grow further. The stock market witnessed phenomenal growth last year.

However, it is saddening to note that this growth is not reflected in the agricultural sector, which is the backbone of the economy.

We have been assured that the coming Budget will give a new impetus to farmers to save them from their financial burden.

On the whole, the transition from 2006 to 2007 will not be tough and one can be optimistic.

S. Nallasivan, Tirunelveli

The Sensex cannot be the sole indicator of the economy. The Prime Minister and his core team deserve kudos for their performance in the most trying of circumstances. Various parameters of growth are on the upswing.

There is financial and fiscal stability. Foreign investors are attracted to India. But we still have a long way to go. Corporate governance needs to be improved.

There should be zero tolerance for corruption. Central and State governments should privatise more PSUs.

S. Krithivasan, email

Indian manufacturing put up a good performance. However, contribution of the sector to technology and R&D is not growing. Emphasis should be laid on proprietary technology.

With privatisation, the cost of services has come down dramatically, especially in telecommunications.

The service sector is set to drive the economy. Research has finally started yielding results in Indian labs, particularly in bio-technology, life-sciences and computing. Indian graduates should be more enterprising and not remain content with employment.

T. S. Sundareswaran, New Delhi

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