India can achieve 9 % growth rate for next two decades, but will face challenges, says Montek Singh Ahluwalia

In the process, India will emerge as the third largest GDP nation in the world. Delivering the keynote address at the FMS annual convention in the capital on December 2, Mr Montek Singh Ahluwalia said, Based on economic projections, I believe that Indian economy is poised to clock an average growth rate of 9% over next twenty years. This growth will make India a key economic force on the world map.

Dr Ahluwalia added, If we achieve this projection, our GDP will be the third largest in the world, and our per capita income will be four times the present numbers. We will be a middle-income nation.

However, India will have to manage challenges to achieve this growth. Dr Ahluwalia highlighted four risks that India will have to mitigate. Said Dr Ahluwalia, There will be four key risks that India should manage. The first and obvious one is that India can fail to build on the momentum it has generated in last five years. Second is the issue of Energy crisis and climate change. Third risk is that volatile capital inflows and outflows with shake the stability on currency markets. And finally, I expect food prices to shoot up.

Ending his address on a bullish note, Dr Ahluwalia said, I expect India to manage most of these risks.

University of Delhis Faculty of Management Studies (FMS) organized its annual convention centered on the theme Vision India- Sustaining the Dawn of Opportunity on December 2, 2007. The convention was divided into three sessions based on the themes like The Changing Indian Marketplace, Building Financial Resilience in Changing Timesand Inclusive Growth- The New Mantra. These issues were addressed by corporate leaders including Ms Hiroo Mirchandani, Director, Consumer Health Products, Pfizer Ltd; Mr Harit Nagpal, Chief Marketing Officer, Vodafone; Mr Kamal Oberoi, CEO and MD, M&C Saatchi; Mr Uday Sareen, Country Head, Retail Banking, ING Vysya Bank; Mr Naveen N. Gupta, Head Global Markets, American Express Bank; Dr KC Chakrabarty, CMD, Punjab National Bank; Mr Vijay Thadani, CEO, NIIT Technologies and Mr Vikram Kaushik, CEO and MD, Tata Sky and Mrs Meira Kumar, Minister of State for Social Justice and Empowerment, Govt of India.

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