Global Competitiveness of the Indian Economy
Thursday, 29 September 2005, Rasipuram

Seminar report

A seminar on ‘Global Competitiveness of the Indian Economy’ was organised on 29th September, 2005 by the India Development Foundation (IDF) and the Confederation of Indian Industry (CII) in association with the Rotary Club of Rasipuram, Salem Tamil Nadu. Dr. Amir Ullah Khan, Fellow IDF and Ms. Tandley Sridevi were the keynote speakers in the seminar. Mr. Raghukannan, Chairman Rotary Club of Rasipuram and N.P. Ramaswany, President Rotary Club of Rasipuram addressed the conference and welcomed the participants and the guest speakers.

Addressing the conference, Mr. Ramaswany spoke about the need for rural industrialisation and in that context emphasized the need for rapid growth in the agribusiness sector. He also touched upon the challenges faced by the rural countryside in Tamil Nadu for establishing businesses, especially in terms of credit availability. He asserted that entrepreneurship will help the country to come over the problem of unemployment, as it is important for the youth to become job-providers rather than remain as job seekers.

Dr. Khan spoke about the changing business paradigms under globalisation, and its impact at the grassroots levels in the country, especially on small and medium enterprises. He stated that there are numerous misconceptions and unfounded fears about the adverse impact of trade liberalisation under the WTO. He emphasised that the Indian reform process has amply demonstrated the benefits of competition and international trade. The Indian business today is one of the most competitive and cost-effective in the world, and is in a position to take on every challenge of globalisation and convert it into an opportunity. He underlined the importance of the food processing sector in India for its potential for value addition and employment generation in the rural areas of the country.

Addressing the gathering of around 75 rotary members which included small industrialists, food processors, retailers, traders and exporters, he highlighted the need for higher quality standards in manufacturing and services in the country. Quality alone shall ensure survival of businesses in the future. He encouraged the food industries in Salem to face the challenge of high food standards as only then can such businesses become robust, sustainable and globally competitive. Dr. Khan thanked the British High Commission for financing and supporting capacity building and outreach programmes for the food processing industry in India.

Ms. Tandley Sridevi spoke in tamil about the changing nature of the Indian economy. She presented a snapshot of the economy over the past decades, and highlighted the major positive changes in the economy. From an under-developed, poverty-stricken and food-starved economy at the time of independence, India today has emerged as one of the leading nations in the world. India, post the 1991 reforms, has been one of the fastest growing economy and a sought-after FDI destination in the world. The young demographic profile of India and its vast pool of skilled and trained manpower have put the Indian economy in a fast growth trajectory. Given the cost competitiveness of the Indian population, most firms in the world are establishing manufacturing units, research and development institutions and service centres in India.

She said that the Indian economy has the resilience of facing external shocks. The forex reserves in the country are one of the healthiest in the world, and India today is far less vulnerable to external shocks as it was in the decade of the 70s and the 80s. There is a vast untapped potential in the economy, especially in the rural areas. The need of the hour is to tap this potential by the corporates and business houses by developing innovative business formats to capitalise on the opportunities in the economy, especially in the rural areas.

She emphasized that the need of the hour was to tap this potential by the corporates and business houses by developing innovative business formats in-order to capitalise on the opportunities in the economy, especially in the rural areas.