Indian economy at crucial juncture, says expert

March 22nd, 2008 - 10:37 pm ICT by admin  


Kozhikode, March 22 (IANS) The time has come for India to take vital decisions to chart the course of further economic progress, according to C.K. Prahalad, noted professor of corporate strategy and international business. “In 1991 the economic crisis was obvious; in 2008 it is not obvious. I’d like to suggest looking at the year 2008 with the same amount concern and urgency as in 1991,” he said at an interaction with media persons here.

Prahalad was here Saturday to deliver the convocation address at the Indian Institute of Management, Kozhikode (IIM-K).

He said the country came to an “inflection point” in 1991-92 when it met with the economic crisis. Then India was forced to accept the prescriptions of the International Monetary Fund (IMF) and opened up the country’s economy and reaped the benefits.

“The good news is that the country got a great therapy from that inflection point. Now, I believe there is a new inflection point. We are financially strong but underlying the financial success there may be some lurking problems facing the country,” he added.

Prahalad said a country of one billion has to produce at large scale and at a much faster pace to sustain the growth around 8.5 percent.

Commenting on the Rs.600 billion loan waiver for farmers announced in the union budget, Prahalad said: “Whether this is a sustainable approach is an open question”.

Citing the success of Amul, a popular brand created by a farmers’ cooperative, he said: “Other than giving subsidies and loan-waivers we have to find a sustainable solution to solve these problems”.

At the convocation programme held Saturday evening, 176 students of the 10th batch of IIM-K were awarded postgraduate diplomas in management.

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