Mumbai: Having shrugged off the impact of the global economic crisis, India appears poised to overtake China’s high growth rate in the next ten years, feels home minister P Chidambaram.
“While the last decade was remarkable and exciting, this decade will be more exciting for India. There is more possibility that India could overtake China’s growth rates,” he said at a Business Standard-organised function on Tuesday night.
China, the world’s sixth largest economy, has recorded an average 9% growth over the last two decades, while India has seen growth touch 9% only in the three years till 2007-08. But the global financial crisis ate into this progress and growth slipped to 6.7% in 2008-09.
The Planning Commission, at its meeting chaired by Prime Minister Manmohan Singh earlier this month, scaled down India’s growth target for the 11th five-year plan period (2007-12) to 8.1% from the previously estimated 9%.
“We are young and will continue to grow...corporate India will continue to grow in the current decade. The young CEOs and executives must help to take India to the next level,” Chidambaram said.
The minister’s confidence also stems from the fact that Foreign Direct Investment inflows — key to growth — have been increasing rapidly, although they slowed during 2008-09 at the height of the financial crisis.
Chidambaram also said that India “will become a part of the United Nations Security Council in this decade” and added that there was a urgent need to make India a secure place so that the country’s economic growth remained unblocked.
“There was a fear...but it is over. We are marching ahead to compete with others in every aspect,” he said.
Chidambaram said human resources will not be a burden for India in this decade--rather they will count as assets.