INDIA GROWTH STORY: This could be a turning point in world history

Sunday, May 17, 2009

This could be a turning point in world history

UDAY KOTAK EXECUTIVE VC & MD, KOTAK BANK
    THIS is a proud moment for Indian democracy and a historic opportunity for India to lead the world. Mr Manmohan Singh and his new government are at a turning point in world history. In terms of priorities, the agenda for the new government should comprise reviving growth in a steady manner, building infrastructure, further strengthening the financial sector, reinforcing civil institutions
and uprooting corruption from Indian society. These initiatives will
have to be done in the backdrop of ensuring fiscal stability in a very adverse global situation.
    The new government has the opportunity to unshackle itself from the baggage which the Indian system has carried: to make India a very open and responsible society where merit is rewarded and cronyism is demolished. The pillars of civil society — whether it is the judiciary, the police, educational institutions, or the tax and the revenue administration — have come under increasing pressure as institutions. We need to transform and strengthen each of these institutions of civil society to build India for the next 100 years.
    In the financial sector, our prudence over the last five years has held us in good stead. Let us now consolidate our gains, take appropriate steps of reform, based on our convictions and not necessarily on dogmas of Western financial systems. In particular, we need to spread Indian banking and insurance to every nook and corner of our country. We must develop modern day debt markets with all the checks and balances. The exchange traded mechanisms across equity, debt, commodities, currencies and interest rates must be given wings to make India, and Mumbai in
    particular, a national and an international financial centre.
    Infrastructure is our primary need and in the next five years true 'Bharat Nirman' must take place. Roads, ports, airports, power, access to clean water are our priority.
    One of India's biggest challenges in the years to come is to create employment. More than 10 million people become employable every year and therefore growth which is broad based and job-creating is the key to our future. Appropriate employment creation will need to be the mantra.
    I write this piece with a sense of relief and exhilaration at the same time. Gods have smiled upon us and blessed us with political stability at one of the most crucial times in our history. Let us clasp this unique opportunity. It is truly India's tryst with a new destiny. Manmohan Singh, Jai Ho!