Prime Minister's speech at the opening session of India Economic Summit

New Delhi
December 05, 1999

It gives me great pleasure to be with you at the opening session of India Economic Forum organized by the World Economic forum and CII. I especially welcome all the foreign delegates and wish them a pleasant stay in Delhi's cool December climate.

I am sure   however that the attention of all you is focussed on the hot   topic of globalisation  especially  in view  of the heat generated  by the  goings   on in Seattle  both inside  and the  outside   the negotiating   halls.

This  is only  natural. We are now into the last month of this century. But there is a universal  realisation  that the world  is transiting  not only  from one  century into another not only from one millenieum  into another  but  also from  one era of international  economic relations  into  another.

Suddenly all nations find themselves far more inter-dependent today especially in trade and economy  than  ever   before. This phenomena of globalisation  is certain  to further  increase   inter-dependence  in the coming  century. In an inequal world however interdependence tends   to get distorted into a relationship between the dominant  and the   dependent.  Such a relationship is fundamently  unacceptable  in an  age  that  has come  to accept  freedom,  democracy,  equality  and pluralism as universal values.

In the circumstances I regret the failure at WTO talks in Seattle. The need for negotiated  settlement of trade issues between nations not on dominance and unilateral advantage is  obvious. A spirit of consensus and avoidance of linking trade with extraneous  issues is necessary to reach a  settlement.

Developing and large population  countries like India have core interests to protect. India will do that. Rich nations should be sensitive to  this reality. India looks forward with renewed anxiety to resumption of talks  soon.

Naturally the diverse peoples and cultures of  the world today view  globalisation with both expectation  and apprehension,  Expectation because the world has clearly seen the benefits of global trade and economic growth. At  the  same time, there is also  apprehension  because of the continuing inequalities and imbalances and their consequences for regional and international security.

As we all know, many of the conflicts in this and in the preceding centuries had their  roots in the unjust, unequal and  explotative  nature of the trade and  economic relations between countries. The  phenomenna of colonialism, which has happily come to an end in our time, also arose out of the dynamics of economic exploitation. The worst manifestafion of the flaws in the system of global trade and economy were the two World Wars. These brought untold misery to all the countries - poor as well as rich.

Friends, this brief review of the past point to a cautionary lesson of history for all of us as we stand on the threshold of the 21st century,

'The greatest challenge before all those in governance, business and Administration  is to steer the growth in global trade,  business and economy along the lines of fairness,  equity  and attainability, If we want globalisation to deliver the desired boons in the next century, our watchwords have to be:

•  The good of all, and not the greed of a few

•  Long term growth and not short-term gains;

•  Co-operation based on complementary strengths and not  conflict rooted in unhealthy competition,

The decade of the  nineties has shown that the circle of popular acceptance for market-driven but well-regulated economic reforms is constantly expanding all over the world. People both in developing and developed countries are willing to support liberalisation and globalisation, provided they are credibly reassured:
 

•  That these reforms will benefit everybody, especially the poorest and the most disadvantaged,

•  That the environment will be protected;

• That their cherished national and cultural identities will be preserved

It is not the responsibility of governments and politicians alone to voice these concerns and address them sincerely especially since the role of government itself is rightly being re-defined everywhere. Business associations both national and global must also fully. participate in this effort This is necessary for the future good of business itself. To speak in your own language, dear businessmen. The more business cares for the world, the more will the world reduce the risks and enhance the returns of business.

Friends, this calls for a fundamentally new relationship between governments and businesses. I call this relationship the Dharma of Partnership. No longer can the two have divergent, much less, conflicting goals. Our roles are complementary and convergent to serve the common goal of promoting people's welfare.

The concept of partenership imposes certain common obligations on governments and businesses, One of them is accountability towards people. For example, I often ask myself why should only governments and people's elected representatives be expected to be accountable for their actions? Should'nt businesses be also accountable to the people and the community - and not only to the limited group of shareholders?

As a matter of fact, the very meaning of private ownership of business has undergone a fundamental change in our times. In one way or the other, the public owns most contemporary businesses, even though it may not be directly involved in managing or running them. In such a situation, it is inconceivable, that businesses can legitimately pursue objectives that do not ultimately serve the collective good.

I am happy to note that the World Economic Forum and the CII have contributed significantly to a fruitful dialogue on these wider concerns through its annual summits,

Friends, India is now set firmly on a faster growth path. Our Government, has resolved to follow a bold pro-growth programme of economic reforms. Our goal is to achieve a sustainable rate of growth of 7 to 9 per cent which is necessary to make a quick and visible reduction in poverty, unemployment and regional Imbalances.

Faster socio-economic development is the common cry all over India. I am confident that we will fulfil our peoples aspirations to a substantial extent in the next five years. We are fully aware of the formidable challenges involved in reaching higher rates of growth and sustaining them over a prolonged period. We know not only the problems of development but also the approach to solving them.

Today there is a multi party consensus in India that the solution to many of out developmcmal problems lies in further economic reforms. The closing years of the Nineties will be recorded as the time when India took to the path of reform with conviction and confidence.

Armed with a renewed mandate from the people of India in recent elections, our Government has begun to formulate appropriate policies, programmes and legislative initiatives I am sure the business community in India and abroad have taken due note of the passage of the Insurance Regulatory and Development Authority Bill and the Foreign Exchange Bill in the Lower House of Parliament last week.

With this major success behind us we shall now embark on such other financial sector reforms as will further improve the efficiencies in our banks, financial institutions and stock markets. Our Government will also move decisively in other important areas such as the power sector, telecom sector, ports, airports and highways. We are determined to speedily increase the size of the export basket and also to diversify its contents. Our emphasis now will be improving decision-making and implementation of policies and projects to make all these sectors more attractive to private sector and foreign investment. Towards this end the Government shall radically simplify rules and procedures that cause delays.

Our Government has identified Information Technology as an area of immense promise for wealth creation and hence needing special focus. The world today fully recognises the potential as well as the performance of Indians in software development. Many of their sucess stories have so far been written abroad. But, of late as you know, they are being scripted in India as well. Our Government is determined to create the necessary conditions that will enable bright and enterprising young Indians to re-create the Magic of Silicon Valley while living and working in India.

Distinguished buisnessmen, I can sum up the brief narration of the Government's multi faceted initiatives in the economic sphere in just five words: INDIA IS ON THE MOVE. The experience of the last decade of this century has given us many useful tips on how India can move faster in the first decade of the next century. The world will soon see the emergence of a strong and prosperous India, in which the basic needs of all her one billion children will have been fully met.

As economically resurgent India will be a source of stablility and long term growth for the world economy. It will also contribute significantly to the emergence of a fair and equitable system of global trade and business serving reliable basis for universal peace and prosperity tomorrow.

In this endeavour to achieve self-growth and global growth, India actively seeks the participation of the international business community. If India is already a good business proposition I can assure you that it will be even better one in the times to come.