Inflation a bigger problem in India: Lord Swraj Paul

April 9th, 2008 - 10:40 pm ICT by admin  

Kolkata, April 9 (IANS) London-based NRI industrialist Lord Swraj Paul Wednesday said inflation in India is a bigger problem and the government should first look into the issue rather than focusing on growth. “Growth is not the only concern in India, inflation is the number one enemy,” Paul told reporters on the sidelines of an interactive session organised by Federation of Indian Chambers of Commerce and Industry (Ficci) here.

“What is the benefit of growth if it does not touch the poor people in the country? It can only be termed as an inclusive growth if it helps the poor people in India.”

Paul said Britain is determined to keep the inflation rate at two percent.

Talking on the education system, he said: “Still nearly 30 percent of children in India are deprived of basic education. This system needs to be upgraded. European universities are interested in lending their hand but no university will come unless there’s any mutual benefit.”

Referring to the acquisition of Corus Group and the British marquee brands Jaguar and Land Rover by Tatas, he said Britain is more open to Indian business houses.

“I have never seen such good relationship between India and Britain in past 60 years as it is now,” Paul said, adding, that Britain is also very keen to see successful completion of the Doha Round of World Trade Organisation (WTO) negotiations.

Commenting on the unrest over the Tata Motors’ small car unit in West Bengal’s Singur, he said, “Every new idea is first opposed and then accepted. Initially the people of Singur were not aware of the benefits of the plant. But now they have realised that the future of their children and grandchildren lies with industrialisation.”

Paul is the chairman and founder of the UK-based Caparo Group.

Caparo Group, a key vendor for Tata Motors’ Nano project, is setting up a facility with an investment of Rs.1.2 billion in Singur. Caparo has got orders for almost 10 percent of components to be used in Tata Motor’s car.

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