India set to surpass China in growth rate

Discussion in 'Economy & Infrastructure' started by LETHALFORCE, Oct 3, 2011.


    LETHALFORCE Moderator Moderator

    Feb 16, 2009
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    India set to surpass China in growth rate: Moily

    DUBAI — India is poised to surpass China as the fastest growing global economy in three years with a projected growth exceeding 10 per cent, Corporate Affairs Minister Dr M. Veerappa Moily said on Sunday.

    Dr Moily, a Congress party stalwart and a farsighted administrator in various roles on the state and federal levels, said India, which could withstand the financial tsunami that derailed the global economy, was again on track to attain 8.5 per cent growth this year and in three years it would record more than 10 per cent growth to surpass China’s growth.

    “The country has a great future. By 2030, India is set to emerge as an economic superpower,” Dr Moily told a gathering of non-resident Indians. The event was hosted by the Indian Business and Professional Council Dubai, or IBPC.

    Dr Moily, a former federal law minister, who took over the Corporate Affairs portfolio in a cabinet reshuffle in July, said India would enact a new Companies Act by December to bring sweeping changes into the corporate world.

    The new law promises more shareholder democracy and tighter governance norms for corporates. The new law will have a far-reaching impact on the corporate sector by ensuring “a sustainable atmosphere for corporate governance.”

    The law that comes in the backdrop of the multi-billion accounting fraud in Satyam Computers a few years ago seeks to plug some gaping holes in the existing corporate governance norms in the country.

    Dr Moily said the proposed “new competition policy,” which is aimed at bringing transparency in all government and public sector transactions, would be in place by next year.

    He said he expected to obtain the Union Cabinet’s approval by December and the New Competition Policy should be in place by 2012.

    The new initiative seeks to strengthen and refine India’s competition laws and to amend laws and norms that government departments needed to follow. The ministry is continuing consultations with economists, consumer associations and experts to get their views on sector-specific policy changes that are required to adopt principles of competition. Once in place, the policy will be a guide for various ministries and state governments to follow on competition, he said. Another landmark move is the creation of a public procurement system, he said.

    Given that various government departments in India make more than Rs11,000 billion worth of purchases every year, the system will go a long way in removing lot of arbitrariness and discretionary powers in government purchases.

    The creation of a national market is another key measure the ministry is pondering, the minister said.

    In response to a representation given by Dubai-based businessman Bharatbhai Shah, the minister promised to look into the delay in ensuring NRI participation in Limited Liability Partnership by expediting changes in India’s Foreign Exchange Management Act, or Fema, and foreign direct investment policy. Dr Moily said he was happy with the growing economic ties between India and the UAE. “I made reports visualising the dream cities in India. Although I have not been to this place before, it seems Dubai is a role-model for a dream city for India,” he said.

    The minister praised the role of IBPC in bringing together the captains of industry.

    “Their entrepreneurship is important for Dubai as well as India. They work for the Indian cause outside of India. They are the real ambassadors of India and will take forward the Indian dynamics to the world,” he said.

    The Indian Consul General Sanjay Verma said India’s two-way trade with the UAE would likely exceed $55 billion in 2011, further underlining the growing trade partnership. In the first six months, bilateral trade has it $30 billion.— [email protected]
  3. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

    Dec 17, 2009
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    India already surpassed China a few years ago once they began artificially inflating their economy. Once they start writing off their debt again it will show 0% growth.
  4. SLASH

    SLASH Senior Member Senior Member

    Feb 5, 2011
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    And our inflation would be at 20%

    Whenever Congress is in power, inflation is full power.

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