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The Changing Scenario of Management Education in India
Prof. C. S. Venkataratnam, Member, FICCI Higher Education Committee & Director, IMI, New Delhi
Ms Shobha Mishra,
Joint Director & Team Leader, Education & Health Services Division, FICCI
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Fourth quarter GDP likely to exceed 8.6%, say chief economic advisor

By A Staff Reporter

The GDP growth rate of the last quarter of fiscal 2009-10 will end up exceeding 8.6 per cent and the same is likely to go at upper end of 8 per cent in fiscal 2010-11 as economic indicators are turning for better, says the Chief Economic Advisor to the Finance Ministry, Prof. Kaushik Basu.

Delivering his Keynote Address here today at the ASSOCHAM-organized conference on Private Equity, Prof. Basu said that inflation, which will remain at double digit for a while would fall below 10% within two months or so.

The Chief Economic Advisor, however, added that the Reserve Bank of India will make some judicious intervention to address issue of inflation, which is a cause of concern both for government and RBI, without making any direct references for possible interest rates hike by RBI in its forthcoming monetary policy.

He elaborated that inflation, according to the Finance Ministry had peaked up because its core part went up and likely to stay firm in double digit for close to two months or so and thereafter inch down to single digit.

Although, figures for GDP growth for January-March 2010 has yet to be released, the Finance Ministry feels that last quarter of fiscal 2009-10 would end up clocking a growth rate of over 8.6% since economy is by and large on growth path. Emerging economic indicators to this effect support this projections, felt Prof. Basu.

Prof. Basu three pronged strategy for India to stay on high growth path by laying mega export thrust, increase share of total trade as percentage of its national GDP as also increase savings rate by making India huff for higher education.

He pointed out that share of total trade of India – comprising its exports and imports are currently at 46% as against total share of trade as percentage of national GDP of Korea which is estimated 90 per cent and that of 76 per cent of China.

India would have to lay focus on increase exports by intensifying it’s foreign external engagements and invite foreign institutions of higher learning to set up their campuses in India so that such education is able to create skills required to meet present days requirement both for government as well as industry, said Prof. Basu adding that foreign direct investments in higher education would work as enabling factor and contribute to national growth. Just as savings rates went up in 50s, 60s and 70s, these should be further enhanced by ensuring financial inclusion for rural India, felt Prof. Basu.

Earlier speaking at ASSOCHAM function, Planning Commission Advisor, Mr. Gajendra Haldea regretted that National Highway Authority of India has yet to be restructured as per recommendations made by Planning Commission, as a result not much foreign investments has been assured in areas like airports and seaports and even on national highways in which some semblance of foreign investments have gone in.

The NHAI should be restructured to ensure that investments especially private investments flock in the infrastructure sector as targeted by the government, felt Mr. Haldea.

Speaking on the occasion, Mr. T N Thakur, Chairman, Power Trading Corporation emphasized the need for better understanding and working between developers of large projects and those that fund such projects so that equity in investment stays.

Among others who spoke on the occasion comprise Mr. Suneet Maheswari, CEO, L&T Infrastructure, Mr. Subbu Subramaniam N. Chairman, VZCAI and Mr. Udai Dhawan, Director, Standard Chartered Pvt. Equity Advisory India.