News / Asia

New Indian Survey Signals Concern About Investment, Inflation

Indian Finance Minister Pranab Mukherjee listens to a question during a press conference in New Delhi, India, January 25, 2011
Indian Finance Minister Pranab Mukherjee listens to a question during a press conference in New Delhi, India, January 25, 2011
Kurt Achin

India's government says the nation's economy is growing briskly, but expresses concerns about inflation, a drop in foreign investment, and a potential skills and innovation shortage in the future. Those details are part of an annual economic survey.

Indian Finance Minister Pranab Mukherjee submitted the survey to lawmakers Friday as a prelude to Monday's submission of the national budget. The survey warns the country may face a slowdown in foreign investment unless it streamlines the management of its land and natural resources for industrial and commercial use.

Anjan Roy, an economist with the Federation of Indian Chambers of Commerce and Industry, points out foreign direct investment plays a secondary role in India's overall growth story.

"The bulk of investment in the economy comes from domestic sources, and that is on the upbeat,” Roy said. “The economic survey says that our investment and savings rates are going up. And on that basis, we are supposed to grow by above nine percent next year."

Roy notes the survey indicates a slowdown in Indian industry and manufacturing, and says reversing that trend will require plenty of direct investment in the country's human capital.

"The survey points out that skill formation and skill innovation should be encouraged as drivers of India's economic growth,” Roy added. “In that context, the survey also underlines the importance of reforms in the universities and higher education sector."

One of India's key national challenges is to stem the rise of inflation - particularly in food - without dampening the momentum of the country's overall growth. Indian officials say robust growth is needed to pull hundreds of millions of Indians out of desperate poverty and to provide basic public services like electricity and sanitation.

In Monday's budget, India is expected to seek investments in improving the supply side of its agricultural sector, including better storage and transport of basic food staples.

Roy points out, India is keeping a close eye on unrest in Libya and around the Middle East, a key source of its energy imports.

"India imports almost 75 to 80 percent of its oil requirements,” he said. “So any Middle East problem which pushes up oil price would be a matter of concern."

India is widely expected to be the world's third largest economy by 2050. The survey predicts its exports will exceed $200 billion next year.

You May Like

Arrested Football Officials Come Mainly From the Americas

US Justice Department alleges defendants participated in 24-year scheme to enrich themselves through corruption of international soccer More

Video Kenyans Lament Al-Shabab's Recruitment of Youths

VOA travels to Isiolo, where residents share their fears, struggles to get loved ones back from Somalia-based militant group More

This US Epidemic Keeps Getting Worse

One in 4 Americans suffers from this condition More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
A Small Oasis on Kabul's Outskirts Provides Relief From Security Tensionsi
X
May 26, 2015 11:11 PM
When people in Kabul want to get away from the city and relax, many choose Qargha Lake, a small resort on the outskirts of Kabul. Ayesha Tanzeem visited and talked with people about the precious oasis.
Video

Video A Small Oasis on Kabul's Outskirts Provides Relief From Security Tensions

When people in Kabul want to get away from the city and relax, many choose Qargha Lake, a small resort on the outskirts of Kabul. Ayesha Tanzeem visited and talked with people about the precious oasis.
Video

Video Film Festival Looks at Indigenous Peoples, Culture Conflict

A recent Los Angeles film festival highlighted the plight of people caught between two cultures. Mike O'Sullivan has more on the the Garifuna International Film Festival, a Los Angeles forum created by a woman from Central America who wants the world to know more about her culture.
Video

Video Kenyans Lament Losing Sons to al-Shabab

There is agony, fear and lost hope in the Kenyan town of Isiolo, a key target of a new al-Shabab recruitment drive. VOA's Mohammed Yusuf visits Isiolo to speak with families and at least one man who says he was a recruiter.
Video

Video Scientists Say Plankton More Important Than Previously Thought

Tiny ocean creatures called plankton are mostly thought of as food for whales and other large marine animals, but a four-year global study discovered, among other things, that plankton are a major source of oxygen on our planet. VOA’s George Putic reports.
Video

Video US-led Coalition Gives Some Weapons to Iraqi Troops

In a video released Tuesday from the Iraqi Ministry of Defense, Iraqi forces and U.S.-led coalition troops survey a cache of weapons supplied to help Iraq liberate Mosul from Islamic State group. According to a statement provided with the video, the ministry and the U.S.-led coaltion troops have started ''supplying the 16th army division with medium and light weapons in preparation to liberate Mosul and nearby areas from Da'esh (Arabic acronym for Islamic State group).''
Video

Video Amnesty International: 'Overwhelming Evidence' of War Crimes in Ukraine

Human rights group Amnesty International says there is overwhelming evidence of ongoing war crimes in Ukraine, despite a tentative cease-fire with pro-Russian rebels. Researchers interviewed more than 30 prisoners from both sides of the conflict and all but one said they were tortured. Henry Ridgwell reports for VOA from London.
Video

Video Washington Parade Honors Those Killed Serving in US Military

Every year, on the last Monday in the month of May, millions of Americans honor the memories of those killed while serving in the armed forces. Memorial Day is a tradition that dates back to the 19th Century. While many people celebrate the federal holiday with a barbecue and a day off from work, for those who’ve served in the military, it’s a special day to remember those who made the ultimate sacrifice. Arash Arabasadi reports for VOA from Washington.
Video

Video Kenya’s Capital Sees Rise in Shisha Parlors

In Kenya, the smoking of shisha, a type of flavored tobacco, is the latest craze. Patrons are flocking to shisha parlors to smoke and socialize. But the practice can be addictive and harmful, though many dabblers may not realize the dangers, according to a new review. Lenny Ruvaga has more on the story for VOA from Nairobi, Kenya.
Video

Video Rolling Thunder Run Reveals Changed Attitudes Towards Vietnam War

For many US war veterans, the Memorial Day holiday is an opportunity to look back at a divisive conflict in the nation’s history and to remember those who did not make it home.
Video

Video Female American Soldiers: Healing Through Filmmaking

According to the United States Defense Department, there are more than 200-thousand women serving in the U.S. Armed Forces.  Like their male counterparts, females have experiences that can be very traumatic.  VOA's Bernard Shusman tells us about a program that is helping some American women in the military heal through filmmaking.

VOA Blogs