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President Pranab Mukherjee on Thursday said the increasing ties with the global economy have thrown up major challenges for the Indian economy “to ensure inclusive growth”.
“Our primary goal is to achieve equitable economic growth,” he said during a global seminar organised by the Institute of Chartered Accountants of India (ICAI).
The close linkage with the global economy has thrown up major challenges, the primary one being “to ensure inclusive growth”, he added.
According to the President, the last six decades have seen remarkable changes in the economy.
From an importer of food grains, the country has increased its food production by almost five times to 256 million tonnes in 2012-13 (from 50 million tonnes in 1951). Today, India is the largest exporter of rice and the second larger exporter of wheat.
Similarly, the literacy rate has improved to 74 per cent now. The country has also made impressive progress in reducing poverty. In terms of economic growth, the country moved from a one per cent average growth rate from 1901-51 to 3.5 per cent between 1951 and 1979.
In the 1980s, the growth stood at 5.2 per cent; at over 6 per cent in the 1990s and at 7.9 per cent between 2003-04 and 2012-13.
Challenges ahead
However, a declining GDP remains a “matter of concern”, the President added. The impact of the economic slowdown of 2008, and the “prolonged” effects of the Euro Zone crisis have had their toll both on the world and emerging economies.
Other BRIC nations such as Brazil, Russia, China and South Africa are also witnessing similar economic slowdown.
“However, being an ever optimist, I am confident and have faith in the capability and resilience of the Indian economy. It will bounce back,” he said.
Role of CAs
According to Mukherjee, economic slowdown magnifies the challenges for a chartered accountant. From providing the right advice to ensuring faith of investors, adhering to accounting standards and prudence in reporting, CAs have to be on their toes.
“I do not think the 2008 financial crisis would have happened if the right kind of advice was made available,” he said adding that the role of a CA has moved much beyond mere accountancy and auditing.
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