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

Video China Investigates Powerful Former Security Chief

Analysts say move by President Xi is an effort to win more party support, take step toward economic reforms, removing those who would stand in way of change More

South Africa Land Reforms Still Contentious 20 Years Later

Activists argue that the pace of land reform is slow and biased; legal experts question how some proposed reforms would be implemented More

In Vietnam, Religious Freedoms Violated, UN Finds

Beliefs reportedly prompt heavy surveillance, intimidation and travel restrictions 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.
Gazans in Shelled School Sought Shelteri
X
Scott Bobb
July 30, 2014 8:16 PM
Israel's air and ground assault against Hamas-led fighters in Gaza has forced many Palestinians to flee their homes, seeking safety. But safe places are hard to find, as VOA’s Scott Bobb reports from Jabaliya.
Video

Video Gazans in Shelled School Sought Shelter

Israel's air and ground assault against Hamas-led fighters in Gaza has forced many Palestinians to flee their homes, seeking safety. But safe places are hard to find, as VOA’s Scott Bobb reports from Jabaliya.
Video

Video Rapid Spread of Ebola in West Africa Prompts Global Alert

Across West Africa, health officials are struggling to keep up with what the World Health Organization describes as the worst ebola outbreak on record. The virus has killed hundreds of people this year. U.S. President Barack Obama and other world leaders are watching the developments closely as they weigh what actions, if any, are needed to help contain the disease.
Video

Video Michelle Obama: Young Africans Need to Embrace Women's Rights

U.S. first lady Michelle Obama urged some of Africa's best and brightest to advocate for women's rights in their home countries. As VOA's Pam Dockins explains, Obama spoke to some 500 participants of the Young African Leaders Initiative, a six-week U.S.-based training and development program.
Video

Video Immigrant Influx on Texas Border Heats Up Political Debate

Immigrants from Central America continue to cross the U.S.-Mexico border in south Texas, seeking asylum in the United States, as officials grapple with ways to deal with the problem and provide shelter for thousands of minors among the illegal border crossers. As VOA's Greg Flakus reports from Houston, the issue is complicated by internal U.S. politics and U.S. relations with the troubled nations that immigrants are fleeing.
Video

Video Study: Latino Students Most Segregated in California

Even though legal school segregation ended in the United States 60 years ago, one study finds segregation still occurs in the U.S. based on income and race. The University of California Los Angeles Civil Rights Project finds that students in California are more segregated by race than ever before, especially Latinos. Elizabeth Lee reports for VOA from Los Angeles.
Video

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video A Summer Camp for All the World

VIDEO: During workshops and social gatherings, the Global Youth Village summer camp encourages young people to cooperate and embrace their differences, while learning to communicate with people from other countries. VOA's Deborah Block has more.
Video

Video From Cantankerous Warlock to Incorruptible Priest, 'Harry Potter' Actor Embraces Diverse Roles

He’s perhaps best known as Mad Eye Moody, the whimsical wizard in the Harry Potter franchise. But character actor Brendan Gleeson's resume includes dozens of films, and he embraces all the characters he inhabits with equal passion. In an interview with VOA’s Penelope Poulou, Gleeson discussed his new drama "Calvary" and his secret to success.

AppleAndroid