Mukesh's 6-point pill for 15 pc GDP

TIMES NEWS NETWORK[ FRIDAY, DECEMBER 13, 2002 08:29:43 PM ]
NEW DELHI:

Reliance Industries chairman Mukesh Ambani exhorted industry leaders and the government to look at annual GDP growth of 15 per cent for the next 20 years, to take India's total output to $ 9 trillion from about $ 500 billion at present.

He sought to take on the proponents of conservative economic growth rates (5-8 per cent) and called for an altogether new mindset for young India, which will move to fill in the skilled manpower shortages of ageing developed world.

"Some may consider this as over-ambitious...I believe it can be done," Ambani told a packed house at FICCI's Platinum Jubilee function here. He outlined a cross-sectoral (agriculture, bio-technology, healthcare, infocom, power, energy) strategy to achieve this goal and listed six points of focus to achieve the macro economic goal.

Ambani began with the agriculture sector and said India should become the food base for the world, like West Asia became the base for energy. For this, he suggested doing away with archaic land laws, tapping new technologies and harnessing water resources (about 60 per cent is wasted), without which sustainable food and agriculture growth would not be possible. "From this sector alone, we can have an output of about $ 2 trillion in 20 years."

Ambani emphasised upon the need for building India as a knowledge society to work in areas like biotech, life sciences and IT.

There was a need to create an education system whose benefits were enjoyed beyond the elite, he said, adding, the country should have about 100 million professionals in the next 20 years, from just about 5 million at present.

Ambani warned against a widening chasm between those who had the skills and mobility to flourish in global markets and those who did not have these advantages.

"Globally, two wars will be fought. The have-nots will fight for progress and the haves will fight for talent...The pool of low cost labour, tech savvy Indian teens (will) realise these opportunities." Citing the example of Reliance's interest in biotech, life sciences, he said there would be $ 2 trillion opportunity to be tapped by India. "In healthcare alone, (where bio-tech and life sciences will play a crucial role), by 2025, there would be gene therapy...individualised medicines," which India could tap.

Despite his emphasis on knowledge related fields, Ambani said manufacturing should play an important role in the economic growth. "Don't write off manufacturing."

He said India should target about $ 2 trillion, with the help of IT, from base industries like textiles, clothing, metalworking and consumer products. "Industries like machines as well as electrical and electronic equipment, require simple skills, and comprise globally a trillion dollar segment."

Over all, he called for a bold action plan involving industry, government and consumers, with foreign direct investments playing a crucial role. "We should invite FDI without fear and guilt," said Ambani.