Vajpayee warns against pitfalls of globalisation

Asserting that India will continue to grow at over six per cent for the eighth year in succession, Vajpayee told the three-day summit "our intention is to double per capita income within one decade. This means an annual GDP growth of around 8-9 per cent.

To achieve this goal, Vajpayee said, India will pursue with "determination" the reform strategy even though it entailed difficult decisions.

"We shall constantly endeavour to evolve national consensus. We believe that the agenda for economic change should not be unduly politicised," he said.

Elaborating on globalisation, Vajpayee said during the first one year "misgivings" about this inevitable process have become more pronounced and this was evident from the increasingly vigorous protests in Seattle, Prague, Bangkok, Melbourne and even Davos.

"We need to ponder over" the questions raised by people about the globalisation, he said adding "The effectiveness of these responses would partially lie in accepting that while globalisation affords unbounded opportunities, these opportunities go hand in hand with obligations."

"The privilege of being a global player must be matched with the responsibility of making the process universally acceptable by making it universally beneficial," he said at the inaugural session at which Finance Minister Yashwant Sinha delivered the keynote address.

Vajpayee said India was conscious that the rapid changes brought about by technology and globalisation have to be addressed with "care and caution".

"We have to spread the benefits among all our people and manage the process of change with sensitivity," he said adding "government sees this as its responsibility."

Giving a nine-point prescription for enhancing Government-Industry partnership not only in the economic sector but also in the social sector, Vajpayee said the first and foremost was that business and Industry, especially the foreign investors community, must have a long-term commitment to India.

"This is the only way we can build trust and a sustained relationship," he said asking captains of International and Indian business to adhere strongly to "free and fair" competition in the interest of consumers.

"Let us not follow the path of monopolies and cartels that serve the cause of few at the cost of many," he emphasised.

He said India wants to see the corporate sector implementing higher standards of corporate governance. "Each Indian and foreign company has a duty to be transparent, just as governments — at the Centre and States — are trying to ensure transparency in policy-making".

The issue of governance and transparency concerned small investors, minority shareholders and investing public, Vajpayee said adding high standards of corporate governance would enhance the people’s confidence in the private sector.

Stressing that foreign investors should consider India as a profitable location not merely for outsourcing of information technology services but also for manufacturing, he said "We have a strong manufacturing tradition; this will continue to exist. India seeks to be not only an IT hub, but also a manufacturing hub."

As technology was driving change, he said with India’s outstanding scientific, technological and engineering talent, "it will benefit everybody if you focus on research and development, innovation and technology building."

Vajpayee, who is addressing the India Economic Summit for the third consecutive year, asked the captains of industry to invest more and more in human resource development.

"It would be beneficial in the long-run to devote funds and time to training, retraining and education of your employees and their families. This will prepare them to meet the challenge of change which globalisation inevitably brings," he said.

Indian industry as whole, he said, must deepen its involvement in the crucial social sector areas of health and education.

He asked if it is possible for each of CII’s 4000 member companies and 300 foreign companies represented at the summit to take charge of at least one primary school and one health care centre to supplement Goverment’s efforts in the social sector.