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

Multimedia Social Media Documenting, Not Driving, Hong Kong Protests

Unlike in Arab Spring uprisings, pro-democracy protesters in Hong Kong aren't relying on Twitter and Facebook to organize, but social media still plays a role More

Analysis: Occupy Central Not Exactly Hong Kong’s Tiananmen

VOA's former Hong Kong, Beijing correspondent compares and contrasts 1989 Tiananmen Square protest with what is now happening in Hong Kong More

Bambari Hospital a Lone Place of Help in Violence-Plagued CAR

Only establishment still functioning in CAR's second city is main hospital 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.
The Legacy of Jimmy Carter: The Preacher from Plainsi
X
October 01, 2014 10:45 AM
It is common in the United States to see tourists flock to sites associated with America's presidents. Some are privately owned and others are run by the National Park Service or the National Archives -- but most have helped draw business and people into the towns and cities where they are located. As VOA’s Kane Farabaugh reports, there is one particular presidential hometown that is unique in what it has to offer those who make the trip.
Video

Video The Legacy of Jimmy Carter: The Preacher from Plains

It is common in the United States to see tourists flock to sites associated with America's presidents. Some are privately owned and others are run by the National Park Service or the National Archives -- but most have helped draw business and people into the towns and cities where they are located. As VOA’s Kane Farabaugh reports, there is one particular presidential hometown that is unique in what it has to offer those who make the trip.
Video

Video Hong Kong Protests Draw New Supporters on National Holiday

On the 65th anniversary of the founding of Communist China, Hong Kong protesters are hoping to stage the largest pro-democracy demonstration since the 1989 Tiananmen protests. VOA's Brian Padden visited one of the protest sites mid-day, when the atmosphere was calm and where the supporters were enthusiastic about joining what they are calling the umbrella revolution.
Video

Video India's PM Continues First US Visit

India's prime minister is on his first visit to Washington, to strengthen political and economic ties between the world's oldest and the world biggest democracies. He came to the U.S. capital from New York, the first stop on his five-day visit to the country that denied him an entry visa in the past. From Washington, Zlatica Hoke reports Modi seemed most focused on attracting foreign investment and trade to increase job opportunities for his people.
Video

Video Malaysia Struggles to Stop People Joining Jihad

Malaysian authorities say militant groups like the so-called "Islamic State" have used social media to entice at least three dozen Malaysian Muslims to fight in what they call "jihad" in Syria and Iraq. As Mahi Ramkrishnan reports from Kuala Lumpur, counterterrorism police are deeply worried about what could happen when these militants return home.
Video

Video Could US Have Done More to Stop Rise of Islamic State?

President Obama says airstrikes against Islamic State militants in Syria will likely continue for some time because, in his words, "there is a cancer that has grown for too long." So what if President Obama had acted sooner in Syria to arm more-moderate opponents of both the Islamic State and the Syrian government? VOA State Department Correspondent Scott Stearns reports from the United Nations.
Video

Video Treasure Hunters Seek 'Hidden Treasure' in Central Kenya

Could a cave in a small village in central Kenya be the site of buried treasure? A rumor of riches, left behind by colonialists, has some residents dreaming of wealth, while others see it as a dangerous hoax. VOA's Gabe Joselow has the story.
Video

Video Ebola Patients Find No Treatment at Sierra Leone Holding Center

At a holding facility in Makeni, central Sierra Leone, dozens of sick people sit on the floor in an empty university building. They wait in filthy conditions. It's a 16-hour drive by ambulance to Kailahun Ebola treatment center. Adam Bailes was there and reports on what he says are some of the worst situations he has seen since the beginning of this Ebola outbreak. And he says it appears case numbers may already be far worse than authorities acknowledge.
Video

Video Identifying Bodies Found in Texas Border Region

Thousands of immigrants have died after crossing the border from Mexico into remote areas of the southwestern United States in recent years. Local officials in south Texas alone have found hundreds of unidentified bodies and buried them in mass graves in local cemeteries. Now an anthropologist and her students at Baylor University have been exhuming bodies and looking for clues to identify them. VOA’s Greg Flakus has more from Waco, Texas.
Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.

AppleAndroid