Delivering the 28th T A Pai Memorial Lecture on “India’s decade of destination,” organised by T A Pai Management Institute (TAPMI) here at Hotel Fortune Inn Valley View on Tuesday, he said global economic scenario today is two dimensional. At present, economic growth is mostly from emerging economy and not by advanced economy. It is here that both India and China pull their potentials of becoming world economic powers besides the US. The economic boom needs to trigger more political reforms. The most pressing are reforms with respect to political contributions from vested parties or interested individuals. Making these contributions transparent and legal is far superior to the present system. In this instance, it is best to adapt the American system of fund raising by political candidates and parties, he added.
The impact of economic reforms of 1991 has created a new image of India. In 1991, the government abandoned the planned social economy model manifested, that was labeled as “license raj” in favour of capitalist economy. What has been achieved in such a short period is impressive. India will gain significant geopolitical clout by 2025. India’s resource advantages like demographic, natural, diversity and entrepreneurship and innovations will contribute immensely for India’s success, he added.
Stating that reduction in the fragmentation of political parties do play important role, he said the current fragmentation forces unholy alliances and coalitions among political strange bedfellows, that results in political gridlocks and arbitrary changes without any vision for the nation. He said computerisation of government and governance is the fastest way to reduce corruption. It will speed up enforcement of rules and regulations and mandate compliance for better and equitable governance. A strong enforcement of existing laws on people who corrupt the system is equally necessary, he added.
Asserting that despite some of the legacy obstacles like highly fragmented economy, lack of modern infrastructure, lack of enforcement, lack of investment in health and education and still existing shades of license raj, the future of India is bright, Sheth said it will not be India or Indians, but the rest of the world, who will deliver its destiny. This is because, the world, including China needs India more then ever today for global growth, he said.