Briefly summarise the opportunities and challenges posed by globalisation to the
Indian industrial sector.
Answers
This Asia Program event, co-sponsored with the Federation of Indian Chambers of Commerce, explored the dynamics of globalization in today's India, highlighting both opportunities and challenges through the distinct perspectives of the three speakers. With the unfolding process of globalization and the significant role of economic reforms in India, issues of inclusive and fair economic growth are extremely salient. The ability of economic reforms in the various areas of trade, investment, and services to simultaneously address the concerns of Indian society as well as both national and international private sector actors is becoming increasingly imperative to the achievement of sustainable and equitable economic growth in India.
Bharat Wakhlu provided a concise overview of the Indian economy's rapid progress since the implementation of key economic reforms in 1991. India's economic growth has increased from 5.2 percent in 1991 to 9 percent today, and foreign reserves have soared from US $2 billion to $200 billion, while the fiscal deficit and debt burden have significantly decreased. Wakhlu asserted that the five central challenges of globalization in India are governance, energy and resources, equity, security, and ecology. While the private sector in India wants the democratic process to be more efficient, particularly in infrastructure development, Wakhlu stresses that it is through empowering citizens with education and deepening the democratic system that infrastructure development will best be achieved. Environmental sustainability needs to be a priority for the private sector, particularly since "the effective use and management of energy will become paramount for the long-term success of the nation," especially because India has an energy-deficit. Furthermore, it is crucial that the creation of new wealth in India be accompanied by equitable distribution with the less-privileged. The Tata Group, Wakhlu highlighted, has substantial corporate social responsibility initiatives that carry out rural development programs, sustainable environmental policies, and offer scholarship opportunities.
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