There is a need to redefine the relationship between governance and industry so that economic growth is achieved. The industry has to factor in the fractured policy in its growth strategies, said Maharashtra Chief Minister Prithviraj Chavan on Tuesday.
He was delivering his inaugural address at the All India Management Association (AIMA) 39th National Management Convention. Chavan highlighted the Centre’s steps to boost business confidence despite political challenges and said that more reforms would be announced soon.
He argued that India cannot become a great economy by relying on its scarce natural resources, “India has to be a knowledge economy to have sustainable high economic growth,” he said. He warned that until Indian companies become innovators and created original products for the global markets, India would only provide labour to the international markets, including the management and engineering labour.
Kamal Nath, Union Minister for Urban Development and Poverty Alleviation, addressing a special session at the convention attributed the present pessimism about India’s economy to high expectations, “We’ve developed a psyche that when it is not boom, it is doom,” he said.
Mr Nath argued that the country needed more reforms in governance than in specific sectors such as retail or insurance. “The Government needs industry and think tanks to suggest such reforms that can help speedy execution of policies and projects,” he said. Talking about land acquisition and tax reforms, Mr Nath said that implementation of reforms was in the hands of the States and they needed to come on board to accelerate the country’s economic growth.
Mr Chavan also drew attention to the lopsided economic development of Maharashtra. He pointed out that only five districts of the State contributed 75 per cent of its GDP, “Unbalanced growth in the country, states, and districts is creating migration pressures on limited land and water resources of the few growth centres,” he added.