Inclusive growth model has capacity to take India to the ranks of developed nations

India's inclusive growth model is being implemented in a diverse country and multi cultural society. "It has the capacity to promote development and well being to take us to the ranks of a developed nation in the very near future", said Mr Pranab Mukherjee, Minister of Finance. The Minister was speaking at the Plenary session titled "Opportunity India" - Interaction with Group of Union Ministers at the Pravasi Bharatiya Divas 2011 organized jointly by Confederation of Indian Industry (CII) and the Ministry of Overseas Indian Affairs. The Minister urged the delegates present to share India's inclusive growth model with their host countries.

Highlighting that the emerging economies were limping back from the impact of the Global Economic recession, the Minister of Finance said that strong fundamentals and a calibrated reforms process had helped contain the impact of the global recession on the Indian economy. India had recorded a GDP growth of 8.9% in the first two quarters of the current fiscal, despite a decline in the GDP growth in 2007-08.

Mr Mukherjee further added that while the government had pressed in Rs. 86000 crores to stimulate the economy through demand generation, the government will have to take fiscal measures to arrest inflation.

On the specific issue of the resident status of Overseas Indians being considered in the Direct Tax Code, the Finance Minister assured the delegates that the decisions would be taken only on receipt of the report of the Standing Committee. He also elaborated on the definition of the Resident Status as given in the proposed Direct Tax Code.

While congratulating the Ministry of Overseas Indian Affairs and its partners for successfully organizing the PBD every year, the Minister added "we would like all overseas Indians to gain from India's growth."

Speaking at the session, Mr Kamal Nath, Minister of Road Transport and Highways, Government of India said that India was faced with the challenge of how to make growth touch all sections of society and all corners of the country. "To sustain ourselves, we need to bridge the infrastructure gap, this is our biggest challenge", said the Minister.

Apprising the delegates of the work being done in this area, Mr Kamal Nath added that Delhi's existing underground, that is being expanded, would soon be longer than London's and other cities would also get their urban transport networks.

The Minister further added that "Our demographics are kicking accompanied by growing disposable incomes in rural India. This gives India the largest aspirational society on the planet." This applies pressures on the political system asking for growth at a pace that is at times difficult to manage, he added.

New Delhi

8th January 2011