2009 year will be a year of challenges for every economy in the World. As chiefs of some of the countries had already declared that their economy is in recession, which is also confirmed by rise in job losses, and record dip in the industrial output. The economic growth prediction of some of the countries is somewhat around 1%-2%, while for some countries its is even showing a negative growth. But even during this time the Deputy Chairman of India's Planning Commission Mr. Montek Singh predicted that India may pose an economic growth of around 7%, the prediction of 7% growth is really overwhelming. From my point of view, this time the 7% growth rate will be not be influenced by global factors, but it will be mostly driven by internal factors and consumption.
But India has to take some stringent measures in order to achieve an overwhelming growth of 7%.
Measures required :
1. Security : Investment sentiments were greatly hurt during the 26/11 mumbai attacks, India has to make sure that its citizens and who ever doing the business with it must be secure.
2. Investment in R&D : India share to global R&D is minimal, its less than 1 %. But if India has to achieve a 7% growth rate, and to sustain a high level of growth rate, it has to invest into R&D.
3. Education : India has to improve its education standards by making it more vocational oriented rather than mere a bookish language.
4. Infrastucture : India has to invest heavily on its infrastructure(Road, Rail, Air, Shipping etc.) to sustain a 7% economic growth in this turbulence team.
5. Open trade: India has to relax its policies of more open billateral trade between other countries.
Thanks&Regards,
Mohit
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