Do well by doing good
I am delighted to participate in the 23rd Annual Day Celebration of Geojit BNP Paribas Financial Services
I would like to talk on the topic “Social Responsibility of Institutions”. Let me first talk about the current ambience in India in a global environment of economic turbulence.
Indian economy was growing at an average of 9% per annum till the last year. Now this year, Indian economy has got affected due to global economic turbulence, nevertheless it will grow at 6.5% in 2009 as expected by the Reserve Bank of India. I was asking myself, what type of innovation is needed to enrich the Indian economy and other world economies in the present circumstances. I had discussions, on this subject,with many experts. It came to light that the Indian economy will be less affected due to the world financial crisis. This is due to (i) The liberalization process in India has its checks and balances consistent with the unique social requirements of the country. (ii) The Indian banking system has always been conservative which has prevented the crisis (iii) The Indian psyche is generally savings oriented and living within means is part of the mind set. These three causes have r educed the effect of global turbulence in the Indian economy. However, there is reduction in export and reduction in outsourcing. The drop in annual growth rate of GDP is around 2.5%. In fact, as we approach 2010, the Indian economy is once again showing strong signals. CII recently has reported that the industrial production has risen considerably with increase in business confidence, along with the return of stabilized financial markets and capital inflows, all indicative of upside prospects. The industry grew 9.1% in September 2009. Sectors like automobile, cement and financial services are all posting significant recoveries since the second quarter of 2009.
This is the time innovation has to be encouraged in our thinking to rejuvenate in particular agricultural and rural sector through value addition, the small and medium scale industries and enterprises for making higher levels of contribution to the GDP. I foresee possibilities of creating new markets through rural potential and employment, giving rise to interesting possibilities of Public-Private-citizen partnerships and international partnerships. Right type of financial institution will become an accelerator of economic development.
India’s performance in IT sector, Pharma, small scale industries and the infrastructure has brought a new dimension to the Indian economy. With its credible legal framework in place, robust banking system, dynamic financial system, its skilled manpower and dynamic 540 million youth force India has become an attractive proposition for the world order.
At the domestic level, India is focusing on bringing sustainable development through rural and urban infrastructure, quality education, healthcare, environmental up-gradation, bringing vibrancy in the public institutions for better and enhanced delivery of essential public services on time, reforming the financial system for better global integration and a proactive regulatory system. It is critical to the success of India becoming a Global player. Six decades of democratic vibrancy in providing leadership to the nation gives confidence to manage the socio-economic turbulences and providing the leadership to the one billion people in a democratic, multicultural, multi-linguistic and multi-religious environment.