'Democracy not a hindrance in Indian economic growth'
Monday, 10 September 2007
DALIAN, Sept 9 (PTI): Despite political difficulties and uncertainties often plaguing India, the country's vibrant democratic structure is a help rather than hindrance to the economic growth, according to panelists at the World Economic Forum (WEF).
This view emerged at a session on 'Growth Hotspots - Focus on India' attended by panelists from India at the WEF summit here.
"It's the only system by which we can correct ourselves," Gujarat Chief Minister Narendra Modi said at the WEF's 'inaugural annual meeting of the new champions.'
One of India's greatest challenges will be sustaining bipartisan support at the federal level for a broad reform agenda - "how to get the government structure in parliament driven by the politics of coalition," former member of Planning Commission, NK Singh said.
The session, not open to the reporting media, noted that over the past 15 years, India's states have gained influence as its central government has gradually lost power.
The devolution of power from the centre to the states has created new centres of economic dynamism, but has reduced the ability of any one government to alleviate the growing gaps in development between states, the panelists felt.
At the same time, India's economy has been shifting from a state-centric to a more market-based model. "I think states will begin to really vie for private sector investment," Singh said.
"I believe competitive federalism instead of competitive populism will become an increasing force to foster changes in the right direction," a WEF session summary quoted Singh as saying.
Meanwhile, at the local level, there are already signs that India's best-known growth hotspots are running up against the limits of their own infrastructure, the session noted.
"Bangalore still remains the darling of tech and R&D today, if you look at where Microsoft or GE or Bell Labs or HP or GM wants to establish their research lab. The talent pool of PhDs is just so concentrated there," Founder, Chairman and Chief Executive Officer, Strand Life Sciences, India, and Technology Pioneer, Vijaya Chandru said.
This view emerged at a session on 'Growth Hotspots - Focus on India' attended by panelists from India at the WEF summit here.
"It's the only system by which we can correct ourselves," Gujarat Chief Minister Narendra Modi said at the WEF's 'inaugural annual meeting of the new champions.'
One of India's greatest challenges will be sustaining bipartisan support at the federal level for a broad reform agenda - "how to get the government structure in parliament driven by the politics of coalition," former member of Planning Commission, NK Singh said.
The session, not open to the reporting media, noted that over the past 15 years, India's states have gained influence as its central government has gradually lost power.
The devolution of power from the centre to the states has created new centres of economic dynamism, but has reduced the ability of any one government to alleviate the growing gaps in development between states, the panelists felt.
At the same time, India's economy has been shifting from a state-centric to a more market-based model. "I think states will begin to really vie for private sector investment," Singh said.
"I believe competitive federalism instead of competitive populism will become an increasing force to foster changes in the right direction," a WEF session summary quoted Singh as saying.
Meanwhile, at the local level, there are already signs that India's best-known growth hotspots are running up against the limits of their own infrastructure, the session noted.
"Bangalore still remains the darling of tech and R&D today, if you look at where Microsoft or GE or Bell Labs or HP or GM wants to establish their research lab. The talent pool of PhDs is just so concentrated there," Founder, Chairman and Chief Executive Officer, Strand Life Sciences, India, and Technology Pioneer, Vijaya Chandru said.