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Jul. 21 – Speaking at a meeting on growth strategy with other financial policymakers on Tuesday, Cabinet Secretary K.M. Chandrasekhar said that India’s achieving double-digit economic growth is “largely contingent” on the country’s farming sector expanding by 4 percent per annum.
“The economic crisis taught us a lesson and the way ahead is through inclusive growth. We cannot afford to exclude the rural population,” Chandrasekhar said. “Ultimately it was the rural sector that helped India sustain growth through the economic meltdown.”
The cabinet secretary went on to say that particular attention should be placed on India’s eastern states of Bihar and Jharkhand, where a severe drought last year stifled agricultural output.
Policymakers in New Delhi have also lent credence and voiced support to the belief that the route to substantial economic growth in India is through the development of the country’s farming and agriculture sectors. The method would designate intrinsic development as the primary growth vehicle for the country, in stark contrast to the export-driven growth currently being achieved in China.
During Tuesday’s meeting, India’s Finance Secretary Ashok Chawla spelt out exactly what he believes is the recipe for double-digit economic growth in India – namely agricultural growth of 4 percent, industrial growth of 12 percent, services expansion of 10.5 percent, investment rates rising to 40 percent of GDP and the national savings rate increasing from 35 percent to 38 percent.
India’s Prime Minister Manmohan Singh stated earlier this year that high investment and high savings rates would make annual economic growth of 10 percent an “achievable target.”
India grew 8.6 percent in the January-March quarter and is forecast to grow at 8.5 percent this year
July 21st, 2010 at 2:49 pm
And to that end India is asking China to help out with food storage and processing. See:
http://www.atimes.com/atimes/South_Asia/LG21Df01.html
July 21st, 2010 at 3:14 pm
How many times do you repeat the same links on this website ??
Are you trying to make some point here ???
How about Honeywell helping out China in making their “domestic” aircraft ??? There are scores of foreign mfrs “helping” China out in various technological fields.
I only hope they get paid for their efforts.
July 21st, 2010 at 3:25 pm
@Carlos
Why are you so uptight?
I thought the link relevant here. You will find an “original” comment of mine on the article for Honeywell on this site. I might add that the article mentions up to USD $10b to be made by Honeywell on that deal. It’s the large domestic market that China has and the deals to be done there that draws the foreign investment in.
July 21st, 2010 at 4:06 pm
@Both – we appreciate additional helpful links provided by our readers. Our sites are moderated and spam and promotional links filtered out – what remains is generally useful and relevant. After all, if it’s not your thing then also no need to click on it, however we do encourage sensible participation. Thanks – Chris
July 21st, 2010 at 10:18 pm
To,
The_Observer,
The US$ 10 billion that you are refering to is an estimate of gross revenue. I was wondering about what their net profitability would be and whether that NP (however big or small) could be considered as free cash flow or would have to be ploughed back.
The American (Immelt of GE) MNC’s are now beginning to wonder whether its worth their while (after being in China for almost 2 decades) to continue to invest in China. Read about that on Financial Times…article titled “Multinationals right to demand proper returns after decades of investment”.
July 22nd, 2010 at 10:15 am
The CEO’s of Siemens and BASF have also been critical of Chinese investment policy lately. Read the latest in the Financial Times, London. They talk about favouritism towards Chinese companies, demand for transfer of technology, etc, etc. In reply, dictator Wen told them to “calm down” and that it was only natural that a father would look after the wants of his family first
I am frankly not surprised in the least.
July 22nd, 2010 at 10:29 am
@Carlos
All good for debate but you’ve put your entries in the wrong post. This one is about agriculture and rural poverty in India. Chris has an post on Honeywell and Chinese manufacturing. The link on the right under “Most Popular”.
July 22nd, 2010 at 11:56 am
To,
The_Observer,
Yes, I am aware of that. Since, Honeywell was being discussed, I continued here.
If you want to we can continue to debate/argue on the Honeywell thread.
Cheers,
Carlos.
July 22nd, 2010 at 12:52 pm
@Carlos
Also more in your line of thinking is the article, “The Communist China Price” from ‘China Briefing’ (link on the left)
July 22nd, 2010 at 3:08 pm
To,
The_Observer,
Thanks for the link. Yes, I agree with almost everything written. Some good books to read on China include :- 1) Poorly Made in China by Paul Midler
2) China : Fragile Superpower by Shirk
3) The Coming China Wars by Peter Navarro
4) Prisoner of the State :The Secret Journal of Chinese Premier Zhao Ziyang
Cheers,
Carlos.