Chennai:Ten, nine, eight, seven…
Sounds similar to a countdown for a rocket launch? Sorry, it is not. As these are the scaled down figures of India's GDP growth due to the ongoing credit crisis. Sectors such as information technology, textile and automobiles, which are solely dependent on the overseas markets, are facing turbulent times.
The global financial meltdown has affected overseas Indians following a slew of job cuts across the globe.
Is India placed better to weather this financial storm and provide the stimulus for the global economy?
Govt to invest Rs 1,000 bn in infrastructure projects
The session on ‘Reflections on Current Economic Crisis — Diaspora Concerns’ at the Pravasi Bharatiya Divas 2009 here on Thursday provided useful insights into the ways to tackle the current crisis.
"India must utilise this global turmoil as an opportunity for growth and become a knowledge house of the world," said C K Prahalad, Professor, University of Michigan Business School.
Offering his prescription for the US and India to tackle the current global financial mess, the management guru said the former must start saving while India must start spending. "Currently, the US folks are spending a lot, while Indians are pinching their pockets. This should be reversed."
India calls for Diaspora’s support in fight against terror
However, he also warned about the impending credit card crisis that may explode at any time. "The next crisis on the boils seems to be from credit cards. So be wary of them," he cautioned.
On the growing number of financial institutions going bust, he said: "Profits are private while problems are public.” Complimenting the Indian banking system, he said Indian banks are relatively safe as compared with their global peers.
Speaking on the rampant corruption across the globe, Prahalad said the more the corrupt practices, the lesser will be the nation's growth.
Special: PBD 2009
India can get $50-100 billion additional inflow if a special investment route is created for the diaspora, Prahalad said on the additional channel to mop up dollars. "A connected country can be more efficient and grow rapidly,” he said and urged India to have an effective networking system.
In his concluding remarks, Prahalad said: "India must be a leader and not a follower"
A wake up call, indeed, for India!
For more International news | For more Political news | For more Offbeat news
| Slide Shows | Columns | Calendar
Share | 
Print | Rate 
