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The Prime Minister, Dr. Manmohan Singh, has reiterated that the policies of the UPA government are 'growth friendly'. He expressed the Government's commitment to sustain the growth rate of 7-8 per cent in the coming years and accelerate the momentum of growth further and added that the Government was committed to putting in place a set of policies, which would provide the necessary environment for making this growth possible. Dr. Singh stressed the need to pay attention, in a sustained manner, to address the problem of infrastructure deficit - both physical and human. The Prime Minister expressed the confidence that if the momentum were sustained, the Government would be able to address itself to the infrastructure problem.
The Prime Minister was speaking at the launching of the centenary celebrations of Punjab, Haryana and Delhi Chamber of Commerce and Industry (PHDCCI) here today.
‘The fortunes of rural India cannot be transformed, unless adequate attention is paid to agriculture,’ Dr. Manmohan Singh said. Referring to 'Bharat Nirman programme', the Prime Minister said that by the year 2009, substantial improvement in the condition of rural areas would have been achieved and this would provide a growth dividend, which would be sizeable and more evenly spread out. He also expressed the confidence that if investments in human resource were properly spent, these would form the foundation for our vision of a prosperous, equitable, competitive, humane and just India. In this context, the Prime Minister appreciated the new, but special meaning imparted to the letters 'P, H, and D' in PHDCCI’s name: Progress, Harmony and Development. He said that all the three were inter-related variables, which constituted the paradigm of development that the Government would like to pursue.
Speaking on the occasion, the Prime Minister said:
"It gives me great pleasure to greet you all on this auspicious occasion which marks your Centenary celebrations. I am told that you have the unique honour of being the first of the so-called "provincial" chambers of commerce and industry, wholly created by local Indian enterprise. Yours is a tribute to the spirit of self-reliance of India’s entrepreneurs. While the Presidencies of Bengal, Bombay and Madras saw the setting up of such chambers in the middle of the 19th century, these were basically creations of the British or British controlled enterprises. It was with the Punjab Chambers that the first of the Indian controlled provincial chambers came up. This is a testimony to the pioneering role of indigenous business enterprises in this part of our country.
I greet you on the happy and momentous occasion of your centenary and pay tribute to all the visionary business leaders who launched this chamber a hundred years ago to give a new sense of direction and a new sense of purpose to the businessmen of this part of our country. I also pay tribute to the generations of businessmen who have been part of this chamber and who have helped in our country’s transition from an agrarian and a colonial economy to a modern industrial economy.
We are here today to salute their contributions to the task of nation building and to salute the role played by this premier chamber in giving a voice to the needs and aspirations of businessmen of this region.
Having started off in 1905 as the Punjab Chamber of Commerce and Industry – and we must remember that Punjab then was among the largest and most dynamic provinces of British India – you are today virtually a representative of businesses in the entire Northern Region. Shri Memani has referred to the PHDCCI being a multi-State apex organization. I compliment you not only for this geographical growth, but for the growth in your stature and presence in the world of Indian business and commerce.
A centenary is an occasion to fondly remember the entrepreneurs of the past who played a significant role in the industrial transformation of this region. Our nation is proud of the achievements of inspiring industrial leaders of an earlier generation like Shri Lala Shriram, Shri G.D. Birla, Shri Gujarmal Modi, Shri Karamchand Thapar, Shri Padampat Singhania and many others.
In our own generation, we have the shining examples of Shri Brijmohan Lal Munjal, Bhai Mohan Singh, Sardar Raunaq Singh, Shri H.P. Nanda, Shri I.P. Anand, Shri Lalit Thapar and many others who set fresh examples of leadership in the business world. We have leaders of a new generation, both from established families and first generation entrepreneurs, who are striking out into the new fields of enterprise. I have had the privilege of knowing many of you and I have over the years learnt a lot from my association with you individually as well as collectively.
I greatly value the advice and support I have been receiving from time to time and cherish these relations. I do believe that this is an occasion for all of us to celebrate the success of Indian enterprise in this centenary year of PHDCCI.
Centenaries are also occasions to reflect on what the future holds for us and what a chamber like yours could do in making the future happen. While it is not given to mankind always to foretell what the shape of things will be in the future, there are trends that can be observed, which can give us an indication of what the future holds for all of us.
Shri Singhania has elaborated in detail on the potential that exists within our country to transform it into a great economic power. He has also elaborated on some of the issues that must engage the attention of the Government in order to convert this potential into a living reality. I endorse the vision spelt out both by him and Shri Memani about tapping the latent potential of this great country, and in this vital task Government and Business in our country will be joint partners. Let me elaborate on this point little further.
It is undeniable that India is today at a cusp in its development trajectory. After years of the so-called "Hindu" rate of growth, we have broken fresh ground in the 80s and 90s and we have been able to deliver growth in the range of 6 per cent to 6.5 per cent. This in itself has enabled considerable enhancement not only of incomes in general, it has also helped reduce poverty significantly. We are now at a point in time where we need to accelerate this growth further and jump into the 7 per cent to 8 per cent band.
We have done it this year when the growth rate has been almost 7 per cent on the back of an 8 per cent the previous year. All indicators at the moment point out that we may be able to deliver growth of 7 per cent to 8 per cent next year as well. This extra 1 per cent – 2 per cent points in growth rates, which seems miniscule at a glance, can transform into substantial differences over a period of time. Because this is the result of the logic of the compound interest rates. In 20 years profile, a growth rate of 8 per cent will deliver twice as much growth as compared to the growth rate of 5 per cent !
Our government is committed to putting in place a set of policies, which will provide the necessary environment for making this growth possible. We are committed to creating an environment where creativity and enterprise will flourish, where innovation and knowledge will be rewarded and where growth processes will be inclusive, so that they benefit all sections of society particularly the weaker segments of our society.
When our government came to office, there were worries about the direction of our policies. I think we have proved that the policies of the UPA Government are growth friendly. Over the last years, policies relating to investment, taxation, external trade, banking & finance, FDI, capital markets and small scale industries have all evolved towards making our industry and enterprises efficient, globally competitive and as free from restrictions as possible. I commit myself to working for the realisation of these goals.
The direction is visible and I assure you that we will not falter in this regard. I have great expectations from the National Manufacturing & Competitiveness Council, the Commission on the Informal and Unorganised Sector and the Investment Commission headed by my esteemed friend Shri Ratan Tata. The work of these bodies, as well as the knowledge I gain from my own interaction with my Council on Trade and Industry, will further enable identification of problem areas that need attention, so that the industry, business and government work hand in hand to realise our growth ambitions.
I must admit that the first set of reforms in the 1990s were far easier as they related largely to external trade liberalization and removal of industrial licensing. We are now at a stage where the critical bottleneck is infrastructure – both physical as well as human. This is a far more complex area and not amenable to easy solutions.
We need to pay attention in a sustained manner to addressing the infrastructural deficit. Shri Singhania dwelt on this issue at length. I cannot agree more that this area needs priority attention.
As far as the physical infrastructure is concerned, I have set up a Committee on Infrastructure, which I chair. In this Committee, we have been systematically addressing policy issues to enhance investment and to create a policy framework for attracting private capital to this area.
We have made progress in civil aviation and the results are there for all to see with the current boom in our airlines. We are continuing and speeding up the highway programme and the NHDP – IIIA has been approved. We have decided that all future road construction – barring a few exceptions - will be through the BOT route. This will provide additional investment avenues for private capital both domestic and foreign.
The Railway Minister has mentioned in his Budget speech about the introduction of private container trains. That should be a major step forward. The Finance Minister will soon be providing further details of the Special Purpose Vehicles being set up for providing investment capital for infrastructural projects. I believe that we are on the right track and if the momentum is sustained, as we are determined to, we will be able to address the infrastructural problem effectively.
Our government believes that we cannot transform the fortunes of rural India unless adequate attention is paid to agriculture. Economists who have studied the pattern of regional development suggest that a defining element contributing to inter-regional disparities is the extent of agricultural development and urbanization.
States that have advanced in economic development – and I quote the examples of Punjab and Haryana and also the southern States – have been the ones that have experienced an agrarian transformation and expansion of urban areas. We have to work extremely hard and in a sustained manner to expand this zone to include the rest of India – particularly the vital Gangetic belt and central India. These regions need a new wave of agrarian and rural development.
It is in this context that our government has chalked out the ‘Bharat Nirman Programme’ covering irrigation, rural roads, housing, rural electrification, telecom connectivity and safe drinking water. It is our expectation that by the year 2009, we would have achieved substantial improvement in the condition of our rural areas and this would provide a growth dividend, which will be sizeable and more importantly, more evenly spread out.
As important as physical infrastructure is human infrastructure. It will not be possible to sustain high rates of growth without having a healthy, educated workforce. It is with this in mind that our Government has enhanced investments in education, health and nutrition on an unprecedented scale. Education and nutrition budgets have been doubled in a single year.
A Health Mission is being launched in the next few weeks. A Knowledge Commission is in the pipeline to give us the edge in a knowledge-intensive world so that we can modernize the knowledge creating instruments - schools, colleges, universities, National Research Laboratories and R&D Centres. I am confident that our investments in our human resources, if properly spent, will be the foundation for a new vision of a prosperous, equitable, competitive, humane and just India.
In this context, I note with appreciation the fact that you have chosen to give a new but special meaning to the letters ‘P, H, and D' in your name: Progress, Harmony and Development. All three are inter-related variables. Together, they constitute the paradigm of development that our Government would like to pursue in joint partnership.
I am also impressed by the lofty Mission Statement of your chamber. It lays down the guiding principles and a road map for your organization. At this point, I would like to emphasise the importance of the region that you cover from a national perspective. Balanced development and removal of inter-regional disparities on all fronts requires particular attention to be paid to the northern region. This also happens to be your catchment area.
Many states in this region have still poor economic and social indicators. The bulk of our challenges in health, education, rural development, agricultural transformation and industrial growth and the emancipation of our women are in this region. There are excellent examples also in this region in Punjab, Haryana and Himachal Pradesh.
There is enormous opportunity for your chamber in playing the role of a catalyst in transforming the fortunes of some of the more backward States. States have a lot to learn from each other – in policies, in industrial promotion, in social development and in urban management. Your chamber could develop a pro-active agenda for promoting sharing of information and best practices in this region which would be to the benefit of all.
There is also considerable scope for intra-regional initiatives which your chamber could catalyse and advocate. I sincerely hope that your Chamber will actively partner local governments in transforming the landscape of this region.
I would like to end by once again congratulating your Chamber for completing a glorious hundred years. I am confident that the next hundred years will be even better and more memorable. I wish you all success in your endeavour."
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