Date:21/12/2007 URL: http://www.thehindu.com/2007/12/21/stories/2007122155871700.htm

Business

‘Governance linked to growth’

Staff Reporter

Indian economy has achieved a robust growth of 9 per cent

— PHOTO: RAJEEV BHATT

UPBEAT: Union Minister for Commerce and Industry Kamal Nath (left) with PHD Chamber President Sanjay Bhatia during the 102nd annual session of PHD Chamber in New Delhi on Thursday.

NEW DELHI: Good governance by the UPA Government will contribute to an even higher rate of economic growth, Union Commerce and Industry Minister Kamal Nath said on Thursday here.

Addressing the 102nd annual session of the PHD (Punjab, Haryana and Delhi) Chamber of Commerce and Industry, Mr. Kamal Nath said the process of economic liberalisation and globalisation were intrinsically linked with good governance and the good economic governance would go a long way in building the necessary social capital needed for promoting growth.

“The Indian economy has achieved a robust growth of nine per cent and this makes us one of the fastest growing economies in the world. We are increasingly recognised as a global economic power. India of 2007 is more confident, more enterprising and more competitive. There are, however, a number of issues which the governance of this country has to address and address quickly,” he added.

Outlining future challenges, Mr. Kamal Nath said the foremost issue was that of inclusive growth and ensuring that benefits of growth trickled down to all sections of the society, particularly the marginalised sections. Poverty, unemployment, low growth rate in the agriculture sector, provision for safe drinking water and sanitation, education, housing and health care facilities for all were other vital challenges that had to be tackled urgently, he pointed out. The Minister further said it had become more relevant to examine the relation between institutional capacities for effective economic governance at the national level and poverty elimination. “By studying the governance and poverty experiences of some newly industrialised, developing and transitional economies, its findings and proposals should be made applicable for general benefit of societies,” he added.