'India poised for explosive growth in years ahead'

Thursday, 01 April 2004, 20:30 IST
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NEW DELHI: Indian Finance Minister Jaswant Singh has said that Asia's third largest economy would see "explosive growth" in the years ahead on sharply higher output from farm as well as manufacturing and services sectors. "I have always held the view that India is poised for explosive growth," Singh told the Economic Times daily in an interview published Thursday. "This demonstration of double-digit growth for the third quarter is definitely a forerunner of things to come. I greatly pity the cynics and doubters who even now deride the shine of India," he said. Powered by sharply higher farm output, the Indian economy grew by a dazzling 10.4 percent in the quarter ended December, outstripping China's growth rate and making it one of the most dynamic economies globally. Singh said while agriculture production would continue to be healthy in the coming years, sectors like manufacturing and services will equally contribute to robust economic growth. "Look at the impressive strides services, manufacturing and industry as a whole is making. In India, agriculture is a way of life. Agriculture is much more than an economic activity," he said. The finance minister said his government would adopt a swadeshi (self-reliant) approach to put the economy on higher trajectory of growth in the years ahead. "Swadeshi is relevant because it is evolving. We must stick to the principles of swadeshi," he said, adding the trend of Indian companies moving out and getting globalised was part of the self-reliant approach. On economy emerging as the focus of the political discourse in the run up to the general election, Singh said: "Truly in terms of global impact, India is a major player today and it is a pity that we ourselves reduce the scope of debate. "It's an electorate of over 600 million voters who participate in the exercise. This is larger than the combined population of the US, Canada and Western Europe." Singh said the general election to be held in April-May was the first poll since 1957 where developmental issues were returning into the campaign arena. "Just like the 1957 election, this one is fought on developmental issues - planning, progress, and economic growth...the bread and butter issues," he said. "The election will mark a watershed in our country's democratic evolution." On the prevailing depressing sentiment in the Indian stock market, Singh said: "The nature of the market is buying and selling. I always tell my officers not to get unduly alarmed by the movement of the Sensex. "I am convinced that the fundamentals are strong. There is only one way that the market can move. It will move in accordance with the strength of the fundamentals of the economy. And the fundamentals are very, very strong." Singh sought to allay fears in the domestic IT industry on growing backlash in the West against shipping of white-collar jobs to low cost economies like India and China, by saying that the prevailing trend is temporary. "In the long term, the determinant becomes the force of the market. In any case, outsourcing is a small fraction of economic activity largely confined to the metros. But I believe that it just a temporary phase." On sustained rise in the value of the Indian rupee against the US dollar, the finance minister said most currencies in relation to the greenback were getting stronger. "Certainly, there are concerns about its consequences on exports. The RBI (Reserve Bank of India) is addressing the issue ably in consultation with the finance ministry. "I agree it is a complex assessment that has to take place. The RBI is capable of doing it."
Source: IANS